About the author

Thank you for taking the time to read this blog. My name is Melchor Lira and I am college student. I am not your typical "straight out of high school" college student. Because of financial reasons, I was unable to go to college right after high school. I worked to help support my family. After I got married, my wife and I made the decision that I would return to school. I am a husband and a father to two little children. In addition, I work full time. I plan on majoring in business and concentrating in finance. It is my love for finances that encouraged me to write this blog. However, this blog comes from personal experience as well. My wife, thankfully has a college degree so financially me going to school has not been a complete financial drain. However, there were many times when we first got married that finances were tough. We made some poor decisions, but are turning the situation around. I hope this blog helps you.

Avoiding Debt (Children and Marriage)

There is one thing I have learned in my short time on this planet. That is that there is a time and a season for everything. There is time to laugh, and a time to cry; a time to go to college and a time to graduate. There is a time to marry and a time to have children. It would be ideal if we waited till after college to get married and have kids, since they all require special attention. I am attending college three years after I got married, and one year after I became a dad. I do not regret the way my life turned out, but I wish I could’ve finished college before I had kids. There are many people who became parents first then started college, and they are having a hard time keeping up. It can affect our finances and your daily life. Here are some tips to avoid financial troubles:

·         Don’t have kids before college.

·         Don’t have kids out of wedlock, alimony and child support is expensive.

·         Wait till after you graduate to start a family. They deserve your full attention.

Here is an article that helps single parents who are in college:

http://www.foxbusiness.com/personal-finance/2013/03/26/tips-for-going-to-college-as-single-parent/
Christina Couch. Tips for Going to College as a Single Parent. FoxBusiness. March 26, 2013

Avoiding Debt (Learn from your parent's mistakes)

My Parents were 18 & 17 when they got married. My dad was a food vendor and made a lot of money. He was the youngest of 14 and lacked any guidance in the financial field. He didn’t have a bank account and mostly carried all of the cash he made, in his pocket. That lead to excessive spending and they were always running out of money. He then had to borrow money from my aunts or uncles to pay some bills, and then borrow again to pay the person whom he borrowed from the first time.  Keep in mind that my parents were young adults, college age like today’s kids.  Thankfully I was 23 when I married my beautiful wife, and I had a bank account. I am very grateful that they taught me to work hard and respect people. I am focusing on their financial mistakes, not the other mistakes, the ones we all make.  I am going to share some tips on how to avoid your parent’s financial mistakes:

 

·         Don’t get married at 18 years old.

·         Open a savings account.

·         Don’t have kids before college.

·         Don’t carry all of your money in your pocket.

 

Here is an article advising how to avoid our parent’s financial mistakes:

http://www.marketwatch.com/story/avoid-these-10-money-mistakes-your-parents-made-2012-05-09
John Pelletier. Avoiding These 10 Money Mistakes Your parents make. Market Watch. May 9, 2012

Avoiding Debt (That Guy)

I have a cousin who is a cheapskate. He tries to avoid having to pay for anything, or always talks people into paying for him. He used to try that on me, and when I didn’t budge, he would call me a cheapskate or he would say that I was stingy. I’m sure we all have that relative or friend, I call them leeches, and they are a nuisance. I have also seen superstars who have an entourage of these people they call “friends”. Allan Iverson, who was a great NBA point guard, always had his entourage of about 50 people with him. He would pay for them, and buy them cars, houses, and different stuff.  When Iverson’s career came to an early end, he was broke and had no savings, all because he had spent all of his (millions) money on his friends. There are too many similar stories out there, how these leeches suck these people dry and then leave them when their money is gone. I have made it a point to avoid these types of people. I want to share a few tips on avoiding leeches in your life:

·         You can be stingy; it doesn’t hurt to be the ‘bad guy’ sometimes.

·         Avoid going out with them.

·         Go 50-50 with them, they can pay too, set ground rules.

 

 

Here is an interesting and helpful article on how to avoid cheapskates: http://everydaylife.globalpost.com/deal-cheapskates-10007.html

Elise Wile. How to Deal with Cheapskates. Global Post.

Avoiding Debt (Wedding)

I can remember planning our wedding, and how some people wanted us to try ‘this’ or ‘that’, which is very expensive. We had agreed that we wouldn’t overspend or get in debt for our wedding. We managed to have a nice, small wedding, and we didn’t get in to debt. Unfortunately, many young people make that mistake: they want a huge and extravagant wedding, and they are willing to spend thousands of dollars for it. I have seen couples, who have spent $10,000+ on a wedding and honeymoon, and start their life together, broke. They can’t afford a house or a decent place to live, and they end up living with the in-laws or their parents. I am going to share some tips to avoid getting into debt for your wedding:

·         Don’t go overboard; what matters is that you have joined together in marriage.

·         You can spend more on the honeymoon, instead of the wedding.

·         You can also save on the wedding and honeymoon, and use it as a down payment for a house or apartment lease.

·         Use the money and gift cards from the wedding, since they aren’t on the budget.

 

 

Here is a helpful article for avoiding debt while paying for a wedding: http://www.utdallas.edu/news/2013/4/26-23411_Financial-Expert-Urges-Wedding-Seasons-Newlyweds-t_article-wide.html

Financial Expert Urges Wedding Season's Newlyweds to Avoid Debt. The University of Texas at Dallas. April 26,2013

Avoiding Debt (Indulging)

I can remember those days, when I used to march into the Dillard’s at the mall and drop a few bucks ($70-90 each) on a shirt or two, and some jeans. I would also go to the shoe store and get some new kicks, even though I didn’t need them, and I often ate out. I wasn’t worried that I didn’t have any savings or a decent car; that was when I was in high school and had no bills. I wish somebody would’ve advised me on saving to buy a house instead of blowing my money on clothes or food. Fortunately, by the time I got married and became a dad, I had shed those spending habits. I now will mostly get my stuff at the Goodwill or the sale rack at the mall, but I know too many college age friends, who spend $80+ on a pair of jeans or a shirt, but don’t own a car, or have any savings; they are always short on cash, borrowing money, and worst of all bumming off everyone else. These are kids working in fast-food joints or at low paying jobs, but they will drop their entire paycheck on one item, like an iPad or a purse; they are living above their means, and this will lead to financial disaster. I will share some tips on how to live within your means.

·         Eat out once a week, or twice a month.

·         Don’t buy the luxury car if you can’t afford to own it (A Mercedes or BMW is expensive to repair, and insure.).

·         The Coach purse can wait, the mortgage/rent can’t.

Here is an article that will provide helpful information on how to spend wisely: http://www.denverpost.com/ci_23740777/college-spending-tips-five-ways-avoid-going-broke    

Elana Ashanti Jefferson The Top 5 ways to Avoid going Broke in College with Spending Tips. The Denver Post. July 29,2013

  

                                               

Avoiding College Debt (Credit Cards)

 

It is very easy to get into debt, especially when you are in college, or college age. Creditors are looking for kids, who are eagerly looking for financial freedom, and without mom and dad to tell them what to do. They fall prey to their own inexperience. I remember how easy we ran up our credit card usage. They were only for emergencies, but somehow, thing quickly got out of control. We started eating out, and buying clothes online, or just spending carelessly; we quickly amounted a high amount of debt. Our monthly payment went from $25 a month, to $250 a month, then we used another credit card to pay for an overdue bill, etc. So you see, things can quickly get out of control. We have managed to consolidate our credit cards into one monthly payment, we are better at budgeting, and best of all, we don’t spend more than we earn. I want to share some tips on how to use your credit card responsibly:

·         Don’t get a credit card.

·         Only use it in real emergencies:  Dr. or medical, car problems, etc.

·         Spend according to your income.

·         Avoid more than one credit card.

 

I found an article that has some more great advice for college students and young adults, about credit card debt:

http://www.washingtontimes.com/news/2013/apr/1/college-students-more-wary-of-credit-card-debttoug/

Joshua Eferighe. College Students More Weary Of Credit Card Debt The Washington Times. April 1, 2013

Avoiding College Debt (Tuition)

There too many college students who are getting into debt while earning their degree. They are racking up thousands, or hundreds of thousands of dollars in student loans, and irresponsible and unnecessary spending.  Students need to research their career options before they sign away on student loans and also on enrollment forms. In my personal experience, my wife earned her Master’s in History and works as a high school history teacher; she has two student loans.  She will often say: “I wish I could have earned a degree that would get me a better job or more money”, she needed those loans to help pay for her studies. I Will share some tips on how not to get in debt while earning your degree:

·         Earn a degree that will get you a job.

·         Avoid living on campus, and stay with mom and dad if possible, its free (hopefully, or cheaper at least).

·         Rent your textbooks or download the EBook if available.

·         Avoid the big and expensive Universities; after all, a degree is a degree.

·         Eat at mom and dad’s whenever you can (it will probably be free).

·         Work part-time.

·         If you live on campus, do your laundry at mom and dad’s.

 

I also found an article from the Huffington Post that shares some tips to avoiding college debt:

http://www.huffingtonpost.com/galtime/5-ways-to-avoid-college-d_b_3045405.html

by David Bakke, Money Crashers for GalTime.com Five Ways to Avoid College Debt. The Huffintonpost. April 11, 2013