Balancing a Budget -- There are only two moving parts

If you want to be financially independent the math is simple -- you need to make more than you spend.

In a later post we will discuss how you can make your money work for you but that is hard to start with when you have no money. So first things first, you need to think about your intended lifestyle. It is easier to focus on how much you plan to spend (we have been doing that our whole life!). Once we know that, we can target how much we need to earn in a salary to support this life style. Knowing what we need to earn should help us decide on a career.

Our chosen career should help us select a major. Of course, you want to do something that you enjoy, but you need to understand the financial implications of your choice. For example, I always wanted to be a teacher. My mother (who was a teacher) recognized that this was a low paying job and encouraged me to consider other careers. I choose accounting since I enjoyed math and knew I could get a good job when I graduated. I didn't give up on the teaching though. Throughout my career I have used my teaching skills -- presenting a seminars, training staff even this blog!

So many students pick majors without really knowing what the payoff will be. To empower yourself you need to educate yourself. Here is a good web site that discusses careers, salaries and majors. http://www.studentsreview.com/choosing_career.php3