For the past 5 years, my wife and I have lived in a college neighborhood. It turned into an unintentional form of lifestyle arbitrage – a smaller form of geoarbitrage that you could think of as neighborhood arbitrage. That’s where you live in a neighborhood that costs less than a neighborhood you might otherwise live in. The time we spent living in this neighborhood – living in a house far below our means – allowed us to set up a really strong financial footing for ourselves.
We didn’t think of it at the time, but living in a neighborhood primarily populated with students also came with some other unexpected advantages. We never felt any pressure to keep up with our neighbors, for example. I’m reminded of this fact now that I live in a much wealthier neighborhood, with wealthy families constantly upkeeping their yards and doing renovations to their houses. In my old neighborhood, simply cutting the grass regularly made me look better than most people.
Now that I’ve moved into a more adult neighborhood, I thought it’d be worth reflecting on what I’ve learned from observing the college kids that I used to live around. We don’t often think of college kids as being financially savvy, but there’s more here than meets the eye. College kids – by the very fact that they are students and have little money – have no choice but to be financially savvy.Â
Here are a few things I’ve learned (and implemented) from watching the college kids around me.
It’s Okay To Have Weird Living ArrangementsÂ
For almost 5 years, my wife and I rented a room in our house on Airbnb. The room wasn’t on a separate floor or anything either – it was literally next to our bedroom. We also only had one bathroom on this floor, so that meant we shared a bathroom with our Airbnb guests.Â
Many people thought this was a strange living arrangement, especially since we were two young professionals who made a good living. The way we saw it, we were still young. And this weird living arrangement allowed us to live for free most months. If there was a time for us to live weirdly, doing it when we were young and had no kids was the time to do it.Â
College kids have always been good at figuring out weird living arrangements that allow them to live for cheap. They often pack multiple people into a house. Sharing bedrooms is fairly common too. It seems crazy to me that when I was in college, I lived in a dorm with a stranger for a year, literally sharing a tiny room. And when I moved to off-campus housing, I lived with four other guys in a 4 bedroom house.Â
As a mid-30’s adult, those living arrangements seem crazy to me now. A lot of us have the idea that we have to live in a certain way. But when you watch how college kids live, it becomes apparent that the way we live is a choice. We choose our homes and our neighborhoods. We choose whether we live alone or with other people. If you opt to live weirdly, you can often make huge financial progress (remember, housing for most of us is our largest expense).Â
Living weird doesn’t have to be forever. I used to have strangers in my house every day when I did Airbnb. And I used to live with roommates. I don’t do that anymore because I don’t want to. But I could if I had to.
Recognizing that the way we live is often a choice and not a foregone conclusion is something I think is important to think about.Â
If It Has Wheels, You Can Use It To Get AroundÂ
I’ve always liked living in a college neighborhood and seeing all of the creative ways students use to get around. People use bikes, of course, but I’ve seen students traveling using scooters, skateboards, rollerblades, and probably some other random modes of transport I can’t even remember. If it has wheels, I guarantee some college kid has figured out how to get around with it.Â
Transportation is a major expense for most people, typically a top-three expense in most household budgets (after housing and food). If you can reduce your transportation expenses, you can have a lot more money to spend in other areas that might be more meaningful to you.
College kids have always understood this. To combat this expense, they figure out more affordable ways to get around. They live in neighborhoods where it’s possible to walk. They take the bus when it makes sense (and do it for cheap because they get subsidized bus passes). But importantly, they opt not to use a car, instead using cheaper forms of transport. I think there’s something to be learned here.Â
I think part of the reason I’ve always been so comfortable using a bike to get around is that I’ve never felt out of place biking in my neighborhood. It’s something that everyone does because that’s the cheapest way to get around.Â
You Can Probably Make It On Less Than You ThinkÂ
The most important lesson I’ve learned from observing college students is probably just how little you can spend if you have no choice. We assume that we need a lot of things to live well. But a lot of the stuff we think we need is a choice. When I was in college, my yearly income never made it over $10,000 or so in a year. I don’t think I ever made more than $5,000 or so when I think about it. And yet, somehow, I was still able to enjoy my life even though I didn’t have a lot of the things I have now.
I think we can take some comfort in knowing that all of us have probably gone through a period in our life like this, where we were living on basically nothing. It’s not something I’m planning on doing again, but I know I’ve done it before. In a worst-case scenario, I can probably do it again.
Keeping lifestyle inflation in check early in my career definitely set me up on a more positive financial footing. I had a six-figure salary for a long time. And even though I made that much money, I spent about what I might have spent as a broke college student. It’s one of the best pieces of advice I can give to anyone. Live like a student for at least a little bit. You’ll be surprised at how much you can save if you can do this. And it’s much easier to do this when you’re barely out of school versus later when you’ve already inflated your lifestyle.Â
My life is obviously in a very different place compared to where I was 5 or 10 years ago. I’m married. I have a kid now. These are all things that increase my cost of living. I’ve admittedly had some massive lifestyle inflation over the past few years. But there’s no doubt, the things I think I need now are choices. I didn’t need them before.
Final ThoughtsÂ
We’re getting settled into our new house and are starting to learn about the neighborhood. It’s a very different feel. Impeccably manicured lawns. Houses with wealthy families and old people. I like the neighborhood because I’m getting older and this is the type of neighborhood I want to live in right now. But I don’t know if I would have been as well off financially if I had been living in a neighborhood like this for the last 10 years.Â
My son still goes to daycare around our old house, so I’ll still get that college feel every time I drop him off in the morning. And we’re in the process of getting our old house rented, probably to college kids also. So I’ll still get a feel of that college neighborhood when I go over to cut the grass or check on any future tenants. Even though I’m moving away from this neighborhood, I’ll still be around I’m sure.
Most college kids still have a lot to learn when it comes to life and money. But you know something – I think we can learn something from them too.Â
More Recommended Ebike/Scooters
Check out these other ebikes and scooters I've reviewed:
- Urban Arrow Ebike – Last year, I made one of the largest purchases I’ve ever made – I bought a $9,000 electric cargo bike from Urban Arrow. In my Urban Arrow review, I will discuss what it is and why I decided to buy this bike, as well as discuss how impactful a bike like this can be on your journey to financial independence.
- Troxus Explorer Step-Thru Ebike – The Troxus Explorer Step-Thru is a fat-tire ebike that I’ve had the pleasure of riding for a while now. It has amazing power, great looks, and awesome range. If you’re looking for a great fat-tire ebike that offers a lot for the price, the Troxus Explorer Step-Thru is definitely one for you to consider. Check out my Troxus Explorer Step-Thru Review.
- Hovsco HovBeta Ebike – The HovBeta is a folding ebike with great specs and a lot of interesting features, and importantly, it’s sold at a good price point. I’ve had a blast commuting with it and using it to do deliveries with DoorDash, Uber Eats, and Grubhub. Check out my Hovsco HovBeta Ebike Review.
- Vanpowers Manidae Ebike – The Vanpowers Manidae is a fat tire ebike that I’ve been riding as my primary winter commuting bike and have also been using it to do food delivery with apps like DoorDash, Uber Eats, and Grubhub. After clocking in a decent number of miles with this ebike, I wanted to write a post sharing what my experience with the Vanpowers Manidae ebike has been like. Check out my Vanpowers Manidae Review.
- Sohamo S3 Step-Thru Folding EBike Review – A Great Value Folding Ebike – The Sohamo S3 Step-Thru Folding Ebike is an entry-level folding ebike that offers a lot of value for the price point. I’ve been riding the Sohamo S3 for a while now, putting the bike through its paces, and I have to say, this bike has exceeded all of my expectations. Check out my Sohamo Review.
- KBO Flip Ebike – The KBO Flip is an excellent bike. I’ve had a great time riding it and think it’s a versatile bike that can be used for a lot of purposes and can fit a variety of lifestyles. It’s worked out great for me as a general commuter bike and as a food delivery bike. Check out my KBO Flip Review.
- Hiboy P7 Commuter Ebike – The Hiboy P7 is an excellent electric commuter bike that’s offered at an affordable price point. The range and speed of this bike are both very good, so you won’t have any trouble getting anywhere you need to go with it. As a food delivery vehicle, this is also good – with how much range it offers, you’ll be able to work all day on a single charge. Check out my Hiboy P7 Commuter Electric Bike Review.
- Himiway Escape Ebike – The Himiway Escape is an interesting bike for anyone looking for a moped-style ebike. If you’re a gig economy worker, the Himiway Escape is particularly interesting and it’s possible to think of it as an investment, especially if you can opt to do deliveries with the Himiway versus using a car. It’s not cheap, but you can definitely make your money back when you compare the mileage you’ll put on your car versus using an ebike. Check out my Himiway Escape Bike Review.
- Espin Sport Ebike – The Espin Sport is a good ebike for someone who is looking for an ebike that feels and rides more like a regular bike. There are many ebikes that are really only bikes in name. In reality, they’re basically electric mopeds. The Espin Sport, by contrast, is a bike you could probably ride without the battery and you’d feel like you’re just riding a regular bike. Check out my Espin Sport Review.
- Varla Eagle One Scooter – The Varla Eagle One is an excellent scooter that can make sense for a lot of people. It can work as a primary mode of transportation. You can use it to work on gig economy apps like DoorDash, Uber Eats, and Grubhub. And it can also be a recreational vehicle if you’d prefer to use it for that. Check out my Varla Eagle One Review.
- Varla Falcon Scooter – The Varla Falcon is an excellent scooter that offers a good amount of power at a lower price point compared to more powerful scooters. It’s not exactly an entry-level scooter, nor is it a high-powered scooter. I think it fits somewhere in-between those two categories – an intermediate scooter if I had to give it a category. Check out my Varla Falcon Review.
- Hiboy S2 Scooter – The Hiboy S2 is an excellent entry-level commuter scooter that's perfect for someone looking to save some money in transportation costs and improve their commute. Check out my Hiboy S2 Review.
- Hiboy S2R Scooter – The Hiboy S2R is one of the more interesting electric scooters I’ve been able to test out. It’s not a high-powered scooter, but for an everyday transport option, it’s very useful, especially given some of the unique features that it has. Indeed, for the price, the Hiboy S2R might be the best value scooter I’ve used. Check out my Hiboy S2R Review.
- Fucare H3 Scooter – The Fucare H3 is a fun scooter and I’ve enjoyed testing it out. For a daily commuter or quick trips or errands, the Fucare H3 is probably the scooter I’ll use. It’s portable and easy to maneuver, so it’s just easier to take on the road when I need it. Check out my Fucare H3 Scooter Review.
More Recommended Investing App Bonuses
For additional investing app bonuses, be sure to check out the ones below:
- M1 Finance ($100) – This is a great robo-advisor that has no fees and allows you to create a customized portfolio based on your risk tolerance. You also get $100 for opening an account. Check out my M1 Finance Referral Bonus – Step-By-Step Guide.
- Webull (20 free stock shares) – Webull's current promotion gives you 20 free shares valued between $3-$3,000 each if you open an account using my referral link. Here’s a guide I wrote about how to earn your free shares using Webull.
- Moomoo (15 free stocks) – Moomoo is a free investing app currently offering 2 different referral bonuses if you open an account using a referral link. Read my Moomoo referral bonus guide for more information.
- Robinhood (1 free stock) – Robinhood gives you a free stock valued between $2.50-$225 if you open an account using my referral link.
- Public (1 free stock) - Public gives you a free stock valued between $3-$70 if you open an account using my referral link.
- SoFi Invest ($25) – SoFi Invest is an easy brokerage account bonus that you can earn with just a few minutes of work. Use my SoFi Invest referral link, fund your SoFi Invest brokerage account with $100 and you’ll get $25 of free stock. I also have a step-by-step guide for the SoFi Invest referral bonus.
More Recommended Bank Account Bonuses
If you’re looking for more easy bank bonuses, check out the below options. These bonuses are all easy to earn and have no fees or minimum balance requirements to worry about.
- Upgrade ($150) – Upgrade is a free checking account that’s currently offering a $150 referral bonus if you open an account and complete a direct deposit. These bonus terms are easy to meet, so it’s well worth doing this bonus as soon as you can. Here’s a post I wrote with more details: Upgrade $150 Referral Bonus – Step By Step Directions.
- SoFi Money ($275) – SoFi Money is a free checking account from SoFi. They’re currently offering a $25 referral bonus if you open a SoFi account with a referral link and deposit $10. You can also make an additional $250 as well if you complete a direct deposit. This is a good bank that is also 100% free, so you won’t have to worry about managing this account. Here’s a post I wrote with instructions on how to earn your SoFi Money bonus: SoFi Money Referral Bonus: Step By Step Guide.
- Chime ($100) - Chime is a free bank account that offers a referral bonus if you use a referral link and complete a direct deposit of $200 or more. In practice, any ACH transfer into this account triggers the bonus. This bonus is easy to earn and posts instantly, so you’ll know if you met the requirements as soon as you move money into the account. I wrote a step-by-step guide on how to earn your Chime referral bonus that I recommend you check out.
- US Bank Business ($800) – This is a fairly easy bank bonus to earn, since there are no direct deposit requirements. In addition, you can open the Silver Business Checking account, which comes with no monthly fees. Check out how to earn this big bonus here.
- Fifth Third Bank ($350) – This offer is limited to customers in the following states: Florida, Georgia, Illinois, Indiana, Kentucky, Michigan, North Carolina, Ohio, Tennessee, West Virginia, and South Carolina. If you don’t live in one of those states, you won’t be able to open an account online but you can still open an account in-branch if you happen to be visiting a city that has a branch. This is a fairly easy bank bonus to earn, especially since there are plenty of data points showing what will trigger the direct deposit requirement. In addition, you can open the Fifth Third Momentum Checking bank account, which comes with no monthly fees or minimum balance requirements. Read my guide on this bonus here.
- GO2Bank ($75) - GO2Bank is an easy bank bonus that I recommend people take advantage of if they have an easy way of meeting the direct deposit requirement. I like that it’s easy to open the account and that the bonus pays out quickly. Check out my step-by-step guide on how to earn your GO2Bank $75 referral bonus.
- Current ($50) – Current is a free fintech bank that’s offering new users a $50 referral bonus after signing up for an account using a referral link. Current is an easy bonus to earn and also gives you access to three savings accounts that pay you 4% interest on up to $2,000. That means you can put away up to $6,000 earning 4% interest. That’s very good and makes Current an account I recommend to everyone. Check out my step-by-step guide on how to earn your Current Bank bonus.
- Netspend ($40 + 5% Interest Savings Account) – Netspend is a company that provides 5% interest savings accounts. If you sign up using my referral link, you’ll get a $40 signup bonus once you make your first deposit into your Netspend account of $40 or more. That means you get a 5% interest savings account and a free $40 to start! Make sure to check out my in-depth guide on how to set up these accounts.
- Digital Federal Credit Union ($20) – Digital Federal Credit Union (DCU) is a free, nationwide credit union that I recommend to readers for two reasons. First, DCU has a $20 referral bonus if you open a free DCU checking account with a referral link. Second, DCU has a saving account that gives you 6.17% interest on your first $1,000. Check out my in-depth post on how to set this account up.
- Novo Bank ($40) - Novo bank is a free business checking account that’s currently offering a $40 bonus if you open a Novo business checking account using a referral link. In addition to being a good bank bonus, Novo is also a good business checking account. It has no monthly fees or minimum balance requirements and operates a good app and website. Indeed, it’s the business checking account I currently use for this blog. Check out my post on how to easily open a Novo account.
- Varo ($30) – Varo is a free fintech banking app similar to Chime or Current. It’s currently offering a $30 bonus to new users that open a new Varo account with a referral link. The bonus for this bank is very easy to meet, all you need to do is spend $20 within 30 days of opening your Varo account. Check out my step-by-step guide to learn how to earn this bonus.
Kevin is an attorney and the blogger behind Financial Panther, a blog about personal finance, travel hacking, and side hustling using the gig economy. He paid off $87,000 worth of student loans in just 2.5 years by choosing not to live like a big shot lawyer.
Kevin is passionate about earning money using the gig economy and you can see all the ways he makes extra income every month in his side hustle reports.
Kevin is also big on using the latest fintech apps to improve his finances. Some of Kevin's favorite fintech apps include:
- SoFi Money. A really good checking account with absolutely no fees. You'll get a $25 referral bonus if you open a SoFi Money account with a referral link, and an additional $250 if you complete a direct deposit.
- 5% Savings Accounts. I'm currently getting 5.25% interest on my savings through a company called Raisin. Opening a Raisin account takes minutes to complete, it's free, and all of your funds are FDIC-insured. I explain how it works, why I'm now using it to store my emergency fund and any other cash savings I have, and why I recommend everyone check it out in this review.
- US Bank Business. US Bank is currently offering new business customers a $800 signup bonus after opening a new account and meeting certain requirements.
- M1 Finance. This is a great robo-advisor that has no fees and allows you to create a customized portfolio based on your risk tolerance. You also get $100 for opening an account.
- Personal Capital. One of best free apps you can use to monitor your portfolio and track your net worth. This is one of the apps I use to track my financial accounts.
Feel free to send Kevin a message here.
It always amazes me how great some college students situations were. I remember when I was in college, I had something like $30 – $40k saved up. I thought I was doing phenomenal! That seemed to be in the top 1% of college students!!
Until I realized my friend worked half the hours I did while having the exact same amount.
Ah well, back to the drawing board.
I love this post. It’s like an even more extreme version of what Stanley talked about in The Millionaire Next Door with respect to living in older, more-modest, often-more-blue-collar neighborhoods. Blending in with the spending habits of college kids is a crazy-cheap way to go, and props to you for noticing that and tapping into it. I have a kid in college, and I’ve definitely gotten some great ideas by watching him. He hustles, finds creative ways to make money, and creative ways to save money that weren’t even on my radar. Heck, I even followed his lead and drove for DoorDash for a bit because I was tired of him coming home and talking about how he made $100 while I was just sitting on my tail.
One item you did not discuss was that many of these students are also undertaking enormous debt.
Hi Kevin,
I’ve been following your blog for the past year or so, and I’m not sure how to describe it, but I find your blog comforting and reassuring as I’m struggling to figure out how much longer I can last at my demanding law firm job. I got married when I was still in law school, and we lived in a college town at the time, so looking back we definitely saved quite a bit by “living like college students” back then, and when I first started working! Even though we’ve increased our spending to a certain degree and have since bought a house like you guys, I’m hoping to remain intentional about how we spend our money, especially if I want to escape these golden handcuffs at some point soon haha.