Save your money

I know we are all sick of hearing about the poor health of the economy. It is important to remember, however, that now more than ever is the time to be fiscally astute. My advice to you is to save your money or, if you're living on loan money, spend less of it. Although predatory lending may have contributed to the "crisis," we must not overlook a central theme behind these economic hard times: people, and businesses, spending money they don't have.

If you're living on loans, try and reduce your monthly spending. I'm not talking about forgoing basic amenities or even some comfortable luxuries. Keep track of your finances for a few months, see where your money is going and decide where you could trim a little. If you live alone, this would be a great time to consider getting a roommate. Finally, try to avoid debt, especially on depreciating assets. This means if you're in the market for a new vehicle, consider paying cash or borrowing less for an older model rather than the latest release.

While these are good lifestyle habits regardless of the status of the economy, it has never been a more important time to reduce debt and increase savings. The American dollar is undergoing a period of deflation, which means the assets that you've acquired by means of debt are losing value. Having savings will help protect you against unforeseen financial strain or a period of unemployment, both of which are all too common in today's economy.

If you want to learn more about saving, the Duke Credit Union offers financial seminars to help educate the Duke community on various topics of personal finance.

Jacob Warner

University Program in Genetics and Genomics '14