When should I start saving for college?

finance loan money

There is an easy answer to this question – it is never too early to start saving for college. Every year tuition rates increase and the earlier you begin to save, the better off you will be in the future when it comes time to send in your first tuition payment. The following tips will help you figure out how best to start the process of saving.
1. Invest in Stocks like Nowguaranteed
Because tuition costs rise faster than the rate of inflation, investing in stocks may be the best way to save for college. As your child gets older, you can switch out some of your savings into bonds and cash.
2. Start a 529 Savings Plan
A 529 savings plan is another great option and it can also lead to great tax breaks. Most plans allow you to save over $200,000 with no income restriction or limits on the age of the beneficiary. Qualified withdrawals are even free from federal tax.
3. Don’t Think You Have to Pay for It All
There are countless ways to kids to raise money (one thousand dollars loan) for college these days. From federal and state aid to merit scholarships and grants there are plenty of ways to bridge the gap between your savings and the cost of your child’s tuition. The more you save, the better off you will be, but do not think that you have to come up with every nickel and dime your child will need to go to school.
4. Look for Tax Credits
There are always new tax credits and some of them may benefit you during the years you pay tuition. Keep an eye out for credits for which you may be eligible – the American Opportunity Tax Credit and the Lifetime Learning Credit are just two of the many for which you may qualify.

Its also a matter of real estate inflation


which certainly varies from locale to locale. The house my parents bought when I was in 6th grade, a 1927-built 4-bedroom home in the Spanish style prevalent here in Southern California, cost them 82,500 then. I’m now 48 years old, and they just received an offer to sell it for 1.2 million. Soooooooo liability? I don’t think so (Smile.)

But in general, I think there’s a lot of good sense in Kski’s books, especially “The Cash Flow Quadrant” and you can learn a GREAT deal about money, about your attitudes towards it, and about business and how to read a balance sheet by playing his great educational board game called “CashFlow.” Anyone in the Southern California area who’d like to, let me know–I’ve got the game and we find it quite illuminating and it has NOTHING to do with MLM.


One of the concepts Robert promotes is his cash-flow quadrant

finance money

Obviously, I can’t reproduce it here, but (hopefully quickly) I can try to describe it.

In the upper left is the letter “E” –
for employee.
Lower left is “S” – for
Upper right is “B” – for business owner
Lower right
is “I” – for investor

He says that the two left quadrants are for the people who trade time for money and whose money doesn’t work for them if they stop working.

The right two quadrants are for the people who have an asset that works for them (depending upon how well they set it up), regardless of whether or not they are directly involved in day-to-day operations.

I like his basic premise here, but the problem is that he places IBOs, or distributors in an MLM, in the B quadrant – for business owners. And as all of us here have discovered, an IBO really owns nothing. It’s this mislabeling of participants in MLM as “business owners” that, for a man clearly as astute as he is, makes him a sell-out.

I have not read “Ordinary People, Extraordinary Wealth.” Sounds like it needs to be on my reading list. Thanks.

You reminded me that I have worked hard on a 2 drawer filing cabinet


It took a lot longer that I thought it should have. But it’s pretty much done. I had to shred stuff, buy letter size manila envelopes with clasps to put stuff in. That stuff is done. I just need to figure which file folders are really needed and put those back. I feel much lighter having gotten paper work ready for storage … it is tax related stuff and bank statements. Otherwise I would dump it.

I still have some work to do in my studio but I hope it will get easier as stuff gets ditched.