Starting a Retirement Nest Egg while still in College

Many students feel they can delay saving for the future. With technology advancing day-to-day, it’s easy just to whip out that newly acquired card to get the latest gadgets. The pressure to belong with the college crowd leads many to forget about the necessity of saving. Unfortunately, with student loans, living expenses and credit card debt, the average student finds it impossible to save anything. So many students today end up with insurmountable debts by the time they graduate and well before they land their first job.

Unlike past generations, today’s student starts life in debt and stays that way throughout his career. The need to get married, buy a home and raise a family almost guarantees that today’s generation will be living on the knife edge to bankruptcy. Most families today are a mere 2 months away to financial ruin.

It makes sense that today’s college student should start saving for the future. Simply by setting goals and making plans they can avoid the crushing debts that will face the millions of graduates. Few students have enough saved when they do graduate. Getting a job in their chosen field is a problem for many today since the rate of employment is the highest among the youth.

Budgeting and goal setting is not something the average student thinks much about, but they are essential for survival in today’s economy. Parents and the educational system do not emphasize the need for teenagers to save. But the student who learns discipline will have a better life once he faces the competitive work environment.

If the student has a part time job or works over the summer months, he should consider setting aside at least 10% of his take home pay and investing it where it can earn the most interest. This money should never be touched, simply allowed to accumulate. This requires a good deal of discipline since spending and not saving is often ignored by the college crowd.

It’s never too early to start looking for ways to be frugal. The student doesn’t need to wait in long lineups to purchase the latest Ipod or Ipad when what he already owns will last beyond his college days. He can party less and purchase lower cost items such as fashionable clothing, books and secondhand items. No student needs a Lexus, when a used vehicle will do to get him where he wants to go. Credit card use should be curtailed and items purchased with cash. These methods help build an account in preparation for life in the work force.

One of the greatest assets that any student has is time. Considering the expense of an education today, the average college student can use his off time wisely by increasing his net worth. Beyond just partying all night, one of the ways to use free time is by running a business. Job security has become a thing of the past and no college boy or girl can be assured that a job lies ahead on retirement. Running a small business while still in school is one of the best ways to pay down the bills and prepare for the eventuality that a planned future career may become obsolete.

While everyone finds it hard to pay off debts and still save, the younger you are, the more advantages you have to build a nest egg that will see you through hard times and insure a stress-free and a financially stable future life