Young Money wants to revolutionize your financial behavior. Founded in 1998 by Todd Romer, Young Money began as a bi-monthly magazine that focuses on how young adults can change the way they earn, manage, invest and spend money.

“You don’t need an MBA to learn how to save money and invest in your future,” says Romer.

In accordance with Alpha Kappa Psi, an international business fraternity, Romer and Young Money stepped onto campus as part of their new college tours and presented “Young Money LIVE!” last Tuesday in Sturm Hall.

Starting at a young age, Romer was interested in the accumulation of wealth. Using the money he earned over a summer operating a lawn mowing business in high school, Romer proceeded to invest in stocks, bonds and mutual funds at the University of Dayton where he was in attendance.

“I was not born into a rich household with big incomes,” says Romer. “Regardless of your economic background, when it comes to money, everyone is on a level playing field.”

Romer’s financial philosophy consists of four primary steps to achieve financial health and well-being.
He’s been preaching these steps in each of the eight million Young Money Magazine copies since 2000 and shared them with DU students last weekend.

STEP 1: “Start saving at least 10 percent monthly, automatically.”

Romer believes that “automatic saving” is crucial to a financial future.

In the presentation, he explained how students could establish a monthly or weekly date for their banks to transfer a certain percentage of their current checking account balance into their savings account.

“Take whatever you’re earning now and save. If you can’t manage money now, how are you expected to manage money in the future? It just won’t happen,” claims Romer.

STEP 2: “Just say NO! (sometimes)”

One of the tips Romer offered to students at the presentation is to get a receipt from everywhere you go. He says that in order to start budgeting and managing money effectively, students need to know how much they are spending and on what.

“Most Americans today still don’t know where their money is going,” explains Romer.

The “sometimes” of Step two refers to rewarding yourself for being financially sound. Romer presented the familiar example of buying a Starbuck’s coffee.

Instead of spending five dollars a day on coffee, start by saying “No” every other day and then gradually work to only purchasing a coffee once a week.

STEP 3: “Get into the game of investing, automatically.”

In 1982 as a student at the University of Dayton, Romer made his first stock purchase in Johnson and Johnson. Roughly a month later, however, the Chicago Tylenol murders erupted and the share price plummeted.

Tempted to evacuate the stock market entirely, Romer remained patient and held onto his shares for another two years. As a senior at the University of Dayton, Romer’s combined Johnson and Johnson shares grew to be worth over $2,000.

“Over the last 85 years, the annual median return rate of stocks has been a consistent 10-12 percent,” says Romer.

Romer also believes that patience and investing early are key virtues to financial prosperity.

STEP 4: “Pay yourself second, give to others first.”

“When I was 22, I bought an Acura. When I was 25, I built a new house. I married my wife in my twenties and started a family. When I was 30, I started investing in high-risk penny stocks, trying to maximize my profit,” said Romer. “Money became my sole focus, and my family was placed on the backburner.”

Romer went on to lose most of his net worth in his early 30’s, placing his family in a potential financial crisis. If it wasn’t for his financial savvy and the market boom of the 1990’s, Romer claims that he would not be in the position he is today. The lessons he learned from his own personal economic scare have opened his eyes to a world with more to offer than just money and wealth.

“Start with at least two percent, give it to somebody else,” says Romer, “You immediately take the focus off yourself when you give to someone else, and money won’t become the number one priority in your life.”

Even though step four clashes with the mainstream financial dictum of “Pay yourself first,” Romer believes that money should not influence the way you live your life.

“It’s not just managing money,” says Romer, “But by giving back, you start living like you’ve never lived before. You will go from black and white to color. The weight will come down and the stress will be lifted. If you’re not giving, you’re not living.”