Changing the Game: Own your finances BEFORE you need to.

In early 2017 I was flat out broke....

I was buying shoes for $150 a piece, spending way to much money going out to eat, and going on trips that I probably shouldn't.

LET'S BE HONEST, if you're a college student, recent grad, or young professional reading this, at some point you have cringed when the topic of finances came up with your family & friends. Or maybe as you're reading this article. Don't worry, I was right with you. From my experience the best part about finances is that it's just another choice. A few small tweaks here and there can go a long way.

In two short years I went from a student who didn't know how I was going to pay for my sophomore year in school and making $300 a month, to buying a car, proposing to my wife (AKA buying another car), paying for my tuition out of pocket, and on track to pay off my wife and I's near six figures of student debt in 2 years after graduation. Small tweaks, more focus, and more work ethic are big contributors to some of the success I have seen. Here is some of the changes I made along the way:

1) BEGIN WITH THE END IN MIND

If you read my previous article Changing the Game: Choose to Own Your Future, you probably remember me talking about being focused on WHERE you are going long term. The same holds true here. Any financial success starts with a goal you are shooting for. For my wife and I the first thing is getting debt free. This is our first goal, and everything we are do financially will be focused around that until we complete it.

Set a goal that scares you. If you have a goal to have $50K in liquid cash 3 years from now, FRICKEN OWN THAT. Have no shame for financial goals, the worst thing that you can do is not have one. Make big, ambitious, long-term goals that stretch you.

2) WORK MORE

HEY STUDENTS! This one is for you.

One of my biggest regrets I have early in undergrad is not working more. As a college student, one of the only things we can control is our input. Yes, wages can vary, but assuming you're not changing roles tomorrow, the big thing you can change is the amount of hours you work. My freshman year I didn't work at all and my sophomore year I worked 6 hours a week. I easily lost out on another $10K+ due to my own laziness.

I pivoted to working 20+ hours a week and paying cash for all my expenses. AKA saving hundreds of dollars that would've accumulated on more loans. To the students out there, don't underestimate what that can do to set you up for after graduation. Make the decision to work more now, you will thank yourself later.

3) GET A SIDE HUSTLE

This is an area many think about but don't act on. There are so many different avenues out there that can help you earn $500+ a month. For my wife and I this was cleaning houses, babysitting, umpire baseball games, etc. She made $400 in a weekend and for 5 years I was making $2K a summer doing baseball games. Not that these are for you, but there are so many different things you can do. These include:

Uber, Lyft, Nextdoor, flipping electronics and the list goes on. Ideally this is something you can build equity in, like a clientele base. If any side hustles give you a chance to do build equity, prioritize that one specifically.

Find 1 - 2 work them hard, and you will set yourself up much better financially. Get yourself an efficient, profitable side-hustle you can work in your free time.

4) BUDGET YOUR LIFE

This seems simplistic, but I promise you, THIS IS A GAME CHANGER. Money talks and it's favorite words are BYE BYE. Being able to direct it's destination consistently month in and month out is key.

Make sure you budget has a goal at the heart of it. A budget without a goal is like a plane ticket without a destination. Worthless. I budget every aspect of my life including going out to eat so I can have peace of mind. Things that get tracked, get changed. There are plenty of budgeting tools out there that can help you do this. My personal favorite is Mint because it allows you track everything in one place. Whatever you choose as the best way for you to track your money, make a budget you can stick to and that aligns with your goals.

5) BUILD CREDIT

I'll be the first to admit, I'm the farthest from being an expert in this area, but there is something to be said about being smart and preparing yourself for whatever loans you may need. Student, car, home etc.

To this point most of my knowledge in building credit is with credit cards, so I'll speak to that. There are 4 rules I live by in this department.

1) Use it like a debit card. Don't spend money you don't have. Making a $15 pizza cost $100 a few years from now, probably isn't the best idea.

2) Spend less than 30% of your credit limit each month. This will increase your credit score.

3) Pay off the full balance each month. This ties back to 1) and will increase your score as well.

4) Take advantage of the rewards program. Don't go out of your way to do so, but there are plenty of rewards programs out there that will compensate you in some fashion.

Before applying for any I'm a big believer in finding a card that has a great rewards programs. Bankrate.com is a great place to compare cards and the advantages. Do not apply for too many or it will hurt your score, but build credit now, before you actually need it.

6) PLAN TO GET OUT OF DEBT

Debt is a killer. Trust me, my undergrad was not cheap, but no matter what point of life you are in, getting that weight off your shoulders can open a lot of possibilities.

This one goes back to the budget and the goal you set. I truly believe anyone who has a goal in this area can accomplishment their goal with enough focus and commitment. Obviously, I have not accomplished this yet, so let me lay out my plan for you:

1) Keep living like a college student. Delay your gratification. Fancy dinners, expensive clothes, and new electronics can wait. By living below your means, you can fast track this process. Being debt free 6 months sooner is worth eating chicken and rice a little longer.

2) No big purchases. New cars, nice apartment, house or condo, and travel can wait. Yes it's nice to making more money when you graduate. But doesn't mean you should reward yourself. Be smart, if your car dies, buy another cheap car that can get you there. My 2003 Toyota Camry has 209K miles on it, you can bet I'm driving it until the wheels fall off.

3) Prioritize your debt. The money meant to go towards debt isn't touched and you are paying that each & every month. Commit a monthly amount to your debt monthly to consistently cut your debt down.

Make a plan specific to you, and execute day in and day out.

7) SAVE

This goes without saying, saving and having something to fall back on is always important. Early on this will not be as much because of my focus on debt, but I will definitely commit a monthly amount to doing this. Have a goal for this area and don't touch this money in any scenario. Make a plan you feel good about and make it happen. Students you can do this too believe it or not.

Obviously there are lots of other aspects to financial success that I am no expert on. By no means should you take my advice as the perfect advice. But as a soon to be young professional these small tweaks, increase of focus, and preparation have absolutely changed the outlook of my future. Maybe, you won't choose to implement them all, but if you do, I can tell you the world will become your oyster.

Hope my wife and I's successes and failures help you on your journey!

With love,

-Devyn & Sam Zillmer ??????

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