Browsing Tag

future plans

Adulting Transition

3 Tips to Help You Plan for Home Ownership in College

May 26, 2021

Many younger Americans say they are in no rush to become homeowners, and instead want to focus on enjoying life experiences. However, on the flip side, there is also a growing percentage of younger adults working towards homeownership before 35. In fact, many of them are planning to buy their first home while they’re still in college. If you’re thinking of homeownership, you will need to be careful to avoid making common money mistakes in college. Planning ahead gives you ample time to prepare – if you know where to start.

Weigh The Pros And Cons Of Early Homeownership 

College graduates spend three to six months after graduation job hunting. They are also very occupied with setting up their lives, either renting an apartment or focusing on paying off student loan debt. Adding a monthly mortgage to that list can be tough, and should only be undertaken with proper planning. Renting after college also comes with less financial commitment, which can be a good thing. If you haven’t decided where to live or your career path, it may be difficult to stick to a long-term decision like buying a home.

There are also great perks to getting on the property ladder instead of renting. Depending on the location you choose, a mortgage can sometimes be cheaper than renting. If you’re in a good credit position after college and have little debt, it increases your chances of getting a mortgage in the long run. Lastly, if you purchase a home while you’re in college, you could be better off financially by saving on dorm costs. Renting out your home can be a stable income stream. Consider all of these pros and cons before making your decision to become a homeowner.

Narrow Down The Location Early

The earlier you know where you want to own a home, the better prepared you can be to do so. If you choose to, you can buy a home close to your college and skip the boarding costs on campus. Alternatively, you could rent it out to fellow students to help with paying your mortgage. Another reason to choose your location early is that it helps you track home prices and how much you need to save before applying for a mortgage.

Work On Reducing Your Debt 

Many young people are delaying homeownership because of student loans. In a survey by Clever, half of undergraduate students said they would have to put off buying a home to repay their student loans. Around 43 percent of Americans who attended college have some sort of student loan debt to their names, along with credit card or personal loan debts outstanding. When it comes to credit cards and students, starting earlier is always better. 

To make money, consider getting a part-time job while you’re in college, or launching a side business. There are many earning opportunities for college students, including tutoring or on-campus jobs. Also, learn to stick to a budget. If you are not familiar with budgeting and money management, a great place to start is inquiring if your college offers personal finance classes.

Bottom Line

There are many reasons why buying a house in college makes sense. Equally, there are many reasons against it. While real estate can be a great investment in the long term, it’s not universally applicable. The area you choose, your personal finance habits, and the additional expenses that come with homeownership should factor into your decisions. For some, it may be a great dream. For others, it may be too much too soon.

Career

Tips for Writing a Killer Business Plan

December 22, 2020
Photo by Arnel Hasanovic on Unsplash

Are you gearing up for the next phase of life after college and considering embarking upon a business venture? If you intend on taking it seriously, you will inevitably need a business plan. 

Your business plan is an important document and well worth your time and effort to perfect. When executed effectively, it has the power to paint a vivid picture of how your business will operate, the goals it will strive toward, and what ethos it will be driven by. 

Formatting your business plan 

There are two main styles that a business will choose when formatting their business plan:

Traditional business plan – This typically spans 12 or more pages incorporating detailed analyses, supporting documents, contracts, permits, licenses, credit histories and more. They take much more time to create upfront, but taking a deep dive into your business that leaves you with an extremely thorough outline can serve you well.

Lean startup business plan – One or two pages summarize the most important elements of your business strategy. This potentially covers all of the same sections as a traditional plan, but is more condensed to give overviews rather than elaborate analysis. 

Investors and lenders will typically prefer a traditional business plan, but if you expect the course of your business to undergo significant change, a lean startup business plan covering the fundamentals may suffice.

Whatever template you choose to create, you can use the following tips to ensure that you craft a solid and compelling plan to propel your business forward.

Keep it simple

Keeping it simple does not mean dumbing it down – but if your plan starts to waffle, you’ll quickly lose your reader’s interest. When it comes to business plans, more than many other forms of writing, you need to keep it sharp, concise and effective. Only use photos, graphs or charts that significantly enhance the reader’s understanding of your vision and ensure that your formatting makes your document even easier to navigate.

If writing isn’t your strong suit, consider hiring a writer or editor. You can find freelancers to help out with this on sites like UpWork or Fiverr. Just make sure you opt for high rated sellers with excellent reviews.

Work backwards

When creating a plan for a future vision, it can be helpful to reverse the process in your mind and draft your plan from there. For example, realistically consider where you would like your business to be financially after the first 12 months, and then work backwards. What goals would need to be achieved after six months? Three months? One month? Work these milestones into your draft and soon you will see your business plan taking logical shape.

Know your competition

Never speak negatively when referring to your competitors. Familiarize yourself with who they are and what they are doing both well and poorly, and, in your own business plan, outline how you will differentiate your brand from the rest. What will be your company’s unique selling point or proposition (USP)? Be sure to highlight whatever it is that sets you apart from the rest – unique approaches that have viability attract the attention of investors and show that you have thought this vital aspect of the business through.

Know your customer

Successful business plans demonstrate well thought out insights into their customers and a desire to truly understand their clients. What are their needs or problems they have that your business will solve? What is your target demographic? Who will be buying your product or service? Why do they need it? These insights lead to the all-important question – why will they pick you?

Outline your marketing plan clearly

It’s easy to have lofty dreams, but not so easy to drill down on exactly how those dreams will be achieved. A solid business plan demonstrates that the how-to has been carefully researched and considered, and that you have arrived at a series of specific steps that you will take to execute your vision. Where and how will you market? What will you offer and to who? How will you generate new customer leads? How exactly will you entice consumers away from the competition?

Be realistic 

It’s great to dream big, but remember to keep your immediate plans within realistic parameters. Don’t overestimate your revenue forecast or inflate your financials. Do your research and position yourself with confidence, not naivety or arrogance. What will you offer and how much will you charge? What do comparable businesses charge for similar products or services? Keep your projections realistic to cultivate trust with your reader and be sure that the financial information you share is rooted in solid facts.

There are thousands of online resources at your disposal when it comes to crafting a winning business plan – we’ve just highlighted some key points. Be ambitious, yet realistic. Demonstrate care and research regarding customer insights. Speak respectfully but confidently when analyzing your business in comparison to others. Back your claims up. And importantly, once you’ve collated your business plan’s content, deliver it in a concise, sharp style. Get to the point whilst infusing just the right amount of passion to drive your intentions home. Good luck!