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Looking for a better way
to maximize your cash flow and future business
endeavors? Take a lesson from these Howard University
students.
Making Your
Money Work For You,
Not The Other Way Around!
By Feona Sharhran
Huff
April 2001
The CollegeBound Network NewsClick -- Lawrence
A. Garrett, Kyle Bacon, Nathan Reed, and Alex
Dixon have lots of options when it comes to spending
their dollars and cents. As mortgageless, debt-free
undergrads, they could very well enjoy monthly
shopping sprees for the hottest gear by FUBU,
ENYCE or, Karl Kani. Or, they might choose to
tap into their checking accounts in order to purchase
the latest tech toys -- like an iMac laptop, Palm-Pilot,
or two-way pager. They could even opt to hit the
club scene every Friday night, where they'd spend
no less than $30 (that's how much it'll cost for
club admittance and maybe two drinks -- non-alcoholic,
of course!).
Do any of these splurges
tickle their spending fancy?! Not at all. That's
because the Howard University, Washington, DC,
sophomores are taking the road less traveled and
are on a completely different mission. Lawrence,
Kyle, Nathan, and Alex have pooled together their
hard-earned bucks to form an investment club and
business partnership -- Capstone Investment.
"Why not make our money work
for us while we don't have any debt?" poses Kyle,
an international business major. "There are but
so many shirts and ties you can buy [and wear
at a time]." "We look at things in the long term,"
adds Lawrence, an economics/political science
major and administrator of the investment club.
"We're [always thinking]: 'How are we going to
make the best use of our money?'"
According to Lawrence, their
first order of business was to lay out club ground
rules. They discussed their goals and outlook
for the partnership, and put their commitment
in writing. After hammering out the specifics
of their dealings, these 'strictly business' students
met with lawyers, and even signed a legally-binding
five-year contract.
"Everything is going fine,"
says Kyle, "but when you're dealing with other
people's money, you need to have something in
writing. You never know what will happen in the
future."
Next up, the group forked
over $300 a piece for a first-time investment
fee for their account through Buyandhold.com.
They later established a $25 minimum monthly contribution
and became an official company on January 3, 2001.
For a student-based company
that began on September 28th, so far, so good!
The guys meet every Sunday morning to discuss
present issues and future endeavors. In fact,
one of their most frequent discussion topics focuses
on their common aspiration to become venture capitalists.
In other words, they would eventually like to
be able to invest in other people's companies
and help them increase their economic freedom
and growth.
In keeping with their dedication
to spreading knowledge about investing, the business
partners also act as team leaders in the 21st
Century Advantage Program through Howard's School
of Business. They teach first-year business students
-- who have selected a certain track -- how to
make presentations, utilize resources, and basically
assist them with their transition into college
life. And, being the savvy students that they
are, the investment club members invest the money
they make from the program back into their club.
Now that's what we call investing
in one's future!
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