Current Decisions that Reduce Income Risk

I have always been hesitant to spend money where it is not needed. Even when I was as young as 10, I would never spend my money. My younger brother was quite spontaneous in his purchases of the newest toys and games, but I always valued saving over spending. However, over the years, I became less "cheap" per say. Now more than ever, having less than one year left in school, I am making decisions with my future income in the back of my head at all times.

You could say in terms of my spending risk, I am a hard dove. Maybe dollar bets here and there with my friends when college or professional sports are on, but nothing more. Having the safety net of good credit and money in the savings account, puts me at ease, but things are about to change.

This notion of self-reliance really settled in my mind during the summer between my sophomore and junior year. I had dropped engineering as a whole because I had simply lost the love for it. The whole reason I applied to the engineering school at Illinois in the first place was for the sizable check waiting for me at my first job afterwards. After my third semester, my complete lack of interest got the best of me. Plus, the culture surrounding that major just wasn't my style. I needed more engagement and interaction with my peers. The only problem was that I couldn't switch into the business school because I was already a sophomore and that school only allowed freshman and rising freshman to apply. After much research and communication with my parents and mentors, I landed on economics, knowing that I had a interest in the subject, it's a "business-like" major and that steady pay came with the degree.

A steady paycheck would be great, but how will I make it to that point when that first paycheck arrives? I already told my parents to completely shut me off at the start of September 2017. After enlightening my parents with the news I started to really think. I have a little money saved up, but that amount will not be sufficient if I want to live in downtown Chicago where I hope to find that steady paycheck. I needed to find a way to make money while still being a full time student-athlete.

After talking it through with my parents, we came upon the decision that I was going to speak with their investment banker. I could do the research and invest myself, but that is a higher risk scenario and with amount of money and time I have, risky is not an option. I sat down with the investment banker under a month ago and she asked me what I wanted to invest in. I honestly had no idea. The only thing I care about is getting a positive return on my investment and quickly if possible, but I know these things take time to really make an impact. Hesitantly, I brought up the idea of investing in champaign real estate since Illinois is trying to up its enrollment to 100,000 students and there are apartments flying up all over campus. She said she'd do some research and get back to me with some options. Also, she brought up some different ideas that all sounded exciting and easy, but we all know, that nothing is set and stone. Just waiting now to hear back from her.

Along with the future investments, I make decisions daily to save money and lower my future income risk. For instance, varsity room. The varsity room is the place connected to the south side of Memorial Stadium where student-athletes can grab food for free. It sounds great, but I'm telling you the food is well below average. There's no variety, the quality is somewhat poor and there aren't many options to choose from. It would be so much better to just eat at Chipotle or Noodles. However, before varsity room, the majority of my payments made each week were food related. By going to varsity room despite its mediocrity, I am saving money and eliminating some future income risk. Even though my parents would be paying for my meals outside the varsity room, I am adapting and getting rid of old habits to eventually help with reducing income risk as I enter the "real world."