Preparing for the recession as a college student.

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XX55XX

Member
Mar 1, 2010
177
0
0
I am a rising junior at the university, and I major in accounting. At any rate, I am taking the following steps to ensure some degree of economic stability in case a recession strikes:

1. Land a Big Four internship next summer. My biggest priority. I plan to attend every recruitment event next semester and make some inroads with the recruiters, instead of eating the free food and joking around like I have done the previous year, when I was much less serious about getting a job.

2. Cut spending on food and other useless things. I find myself wasting nearly $30 a semester on junk food from vending machines. Time to cut that out. I plan to buy less books for leisure too. However, my spending on video games will remain level, and I will refrain from buying Collector's Editions.

3. Delay buying a new car. I have had my license for a while, and while sharing a car with my parents isn't that bad, I have thought about buying a car. Now that is off the table.

4. Build up a stock portfolio once the big selloff commences. I have long been eager for a big selloff so that I can buy stocks at bargain bin prices. And luckily enough, I know enough accounting to read 10Ks and determine roughly what to buy. But such a selloff hasn't happened yet, so I am keeping several grand on standby for such a event. Or I might use that money for an IRA.

Any thoughts? Does this sound like a good plan to help weather through the upcoming recession?
 
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spidey07

No Lifer
Aug 4, 2000
65,469
5
76
Only screw with stocks after you have a nice emergency fund. You won't always have a job, but life will always cost money.

A car is necessary, get something used cheap and reliable.
 
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DaveSimmons

Elite Member
Aug 12, 2001
40,730
670
126
5. Study and get good grades, even for the "boring, easy" electives. If they're easy, make the extra effort to get an A instead of a lazy B.

GPA doesn't matter for your third job, but can help you get more interviews for the first one.
 
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XX55XX

Member
Mar 1, 2010
177
0
0
spidey07 said:
Only screw with stocks after you have a nice emergency fund. You won't always have a job, but life will always cost money.

A car is necessary, get something used cheap and reliable.
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Not at the moment. I live three miles away from my university, so I have been living at home ever since freshman year to reduce the amount I have to borrow for college. I use public transportation to get there. My workplace is about a mile away, so I walk to work.

I will eventually buy a car. But, just not now.

As for stocks... you might be right. I do have student loans I have to pay back. But, that is two years from now.
 
rcpratt

rcpratt

Lifer
Jul 2, 2009
10,433
110
116
You are going to live a terrible life if you eat $60 worth of junk food per year.
 
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XX55XX

Member
Mar 1, 2010
177
0
0
DaveSimmons said:
5. Study and get good grades, even for the "boring, easy" electives. If they're easy, make the extra effort to get an A instead of a lazy B.

GPA doesn't matter for your third job, but can help you get more interviews for the first one.
Click to expand...

I have a 3.4. I think I am getting close to the point where getting a high GPA wouldn't necessarily help me any further. Hence, my focus on getting to know the Big Four recruiters instead.
 
Gibson486

Gibson486

Lifer
Aug 9, 2000
18,378
2
0
What are you going to do if #1 does not work out? I mean, competition to get into the big 4 is just wow. #1 seems like the first step that every business major has (ie, get internship at some very well known renowned company). In other words, it's not recession proof at all. A better idea, if possible, would be to offer your internship services for free while you are in school and try to get a decent paid internship while on breaks.
 
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XX55XX

Member
Mar 1, 2010
177
0
0
Gibson486 said:
What are you going to do if #1 does not work out? I mean, competition to get into the big 4 is just wow. #1 seems like the first step that every business major has (ie, get internship at some very well known renowned company). In other words, it's not recession proof at all. A better idea, if possible, would be to offer your internship services for free while you are in school and try to get a decent paid internship while on breaks.
Click to expand...

Well, Plan B is to call up random local CPA firms and offer my services for free.
 
O

OCGuy

Lifer
Jul 12, 2000
27,224
37
91
For my serious answer: Connections, connections, networking, connections.

The old "Its not what, but who" saying is 100% true.
 
S

Schfifty Five

Lifer
Oct 20, 2005
10,978
44
91
XX55XX said:
I am a rising junior at the university, and I major in accounting. At any rate, I am taking the following steps to ensure some degree of economic stability in case a recession strikes:

1. Land a Big Four internship next summer. My biggest priority. I plan to attend every recruitment event next semester and make some inroads with the recruiters, instead of eating the free food and joking around like I have done the previous year, when I was much less serious about getting a job.

2. Cut spending on food and other useless things. I find myself wasting nearly $30 a semester on junk food from vending machines. Time to cut that out. I plan to buy less books for leisure too. However, my spending on video games will remain level, and I will refrain from buying Collector's Editions.

3. Delay buying a new car. I have had my license for a while, and while sharing a car with my parents isn't that bad, I have thought about buying a car. Now that is off the table.

4. Build up a stock portfolio once the big selloff commences. I have long been eager for a big selloff so that I can buy stocks at bargain bin prices. And luckily enough, I know enough accounting to read 10Ks and determine roughly what to buy. But such a selloff hasn't happened yet, so I am keeping several grand on standby for such a event. Or I might use that money for an IRA.

Any thoughts? Does this sound like a good plan to help weather through the upcoming recession?
Click to expand...

1. Good objective/goal, but don't only go for one of the big four. Look at all firms hiring for internships as any experience as a public accountant will be beneficial to you.

2. lol, don't even worry about this. It's like pennies compared to bigger issues at hand.

3. Up to you if you want to get a car. If you can afford it, there's no problem in getting one, even if there is a recession.

4. Good idea, but diversify and realize that a few thousand isn't really that much money to invest with, but it'll be a good start. just don't expect to double that right off the bat.

Overall, I don't see the recession being a huge issue to you. You're still in school, young, and don't have investments that are being affected by the shitstorm that which is the market. Just focus on getting work experience (and a paid internship if you can help it) and studying hard.
 
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nageov3t

Lifer
Feb 18, 2004
42,808
83
91
5. maintain good relationships with your family so that you have couches to sleep on?

re: 4, if saving $30/semester via cutting out vending machine purchases is noteworthy, I'd question how much money you have to invest into the stock market in the first place.

personally, my rule of thumb was to always make sure I had 3-6 months worth of living expenses available to me in the bank before investing any other money.
 
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0roo0roo

0roo0roo

No Lifer
Sep 21, 2002
64,795
84
91
almost no students have money for a stock portfolio, esp with the ever increasing cost of education.
 
bpatters69

bpatters69

Senior member
Aug 25, 2004
314
1
81
Having graduated in a similarly bad recession, I can offer some insight. Accounting is a very solid degree. Good choice. My degree of marketing was pretty worthless but it was a business degree so that helped.

Accounts always seem to be in demand. Whether you are counting the gains or counting the losses, you will have a better shot at getting a job.

Now for your points:

1. Land a Big Four internship next summer - Definitely or landing an internship anywhere is a great idea. Having real world experience will take you a long way.

2. Cut spending on food and other useless things - Cutting spending is definitely a good goal but you might want to focus on something that is more impactful. I would spend a month and track all of your expenses. You will be surprised where you spend money. Be wary of that nebulous, "ATM transaction" category or aka "miscellaneous" expenses. Your $30 vending cost is probably hidden in this category.

3. Delay buying a new car - probably a wise move. No point extending yourself when you have other options.

4. Build up a stock portfolio once the big selloff commences - this one is a tough call. No one can ever "time" the market. Thinking you can is pretty foolhardy. Dollar cost averaging usually wins the day. If you are planning on buying individual stocks, plan on investing a lot time researching what you plan to buy and sell. A better option is mutual funds. Get with a CFA and determine what sectors that you want to invest.

5. Stay in school - you will hear the pros and cons but if the economy continues to get worse, there is no point graduating and working at McDonalds. You will languish for a couple of years when you could have extended your education. Trust me on this one. I should have stayed in school vs working at the same job that I did when I was going to school.

Good Luck
 
OBLAMA2009

OBLAMA2009

Diamond Member
Apr 17, 2008
6,574
3
0
lol hes going to save $30 every 5 months by not buying vending machine food? when you dont eat, you just sit around thinking about food instead of doing your work, studying etc...

not having a car doesnt really save money. having your own car would make you a lot more productive. you could buy a used car for very little and that would definitely pay off.

this "rising junior" obviously has a bright future.

seriously if you want a bright future, learn an asian language and move to asia. americas jig is up
 
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