CSUMB professor: Your most important financial asset is you

By Roger Ruvolo 

People getting a handle on their own finances, especially for the first time, can make errors, but Dr. Leslie Boni, professor of finance and chair of Business Administration at Cal State Monterey Bay, said one step should work for everyone:

Pay yourself first. In a savings account. Before you pay any other bills. Without fail. Even if it’s just a little. 

And if you don’t already have a savings account? “It would have been better to start yesterday,” Boni said with a smile, “but the next best day to start is today.” 

Good reasons abound – compound interest, habit over willpower, psychological benefit. 

Compounding adds up. Many people, even those starting out, might have more than one source of income – a loan, a scholarship, a job, a stipend – so putting a small portion from each source of income into savings pays the “future you,” Boni explained. 

“Think of it as your first bill,” Boni said. “Just like you wouldn’t skip paying rent, you don’t skip paying the future you.” 

Boni said some examples of banks that offer online savings accounts are Jenius (although it doesn’t offer ATM services or checking accounts), Capital One, Bank of America and SoFi (student checking and savings). And ask if there’s a student or college account option.

Financial literacy is a longtime professional avocation for Boni, who taught for many years at Cal State Northridge before coming to CSUMB in 2017. . Boni earned her doctorate. in business from Colorado State University and also taught at the University of New Mexico.. 

At CSUMB, Boni not only has conducted financial literacy courses herself but partnered with United Way, where one of her former students and assistants migrated, to greatly expand the offerings in the Tri-County area. 

Boni’s pay-yourself-first notion is one of the subjects taught in financial literacy classes. Although it is significant, the  the compound-interest benefit is not the only attraction of the practice.  

If you make it a habit, Boni noted, you flip the “I’ll-save-whatever’s-left” excuse (there’s rarely anything left, she noted). “Saving becomes automatic,” Boni said, “while spending adjusts to what remains.” It’s establishing habit over willpower. 

And you’re helping your own psyche by signaling to yourself that your goals matter, Boni said. “You’re reframing saving as an act of self-respect, not deprivation.”

Another early initiative in financial literacy courses is self-discovery, Boni explained. Yes, that means budgeting. And that, Boni said, “can be grim. But if you pay yourself first, you get something right away.” 

A side benefit is seeing your spending with your own eyes. 

“You might even discover payments you didn’t realize you were making. Those can add up,” Boni said. 

In this exercise, budgeters are asked to write down everything – and Boni means everything – they spend for a month. 

“Just list everything and you will figure out the next step,” Boni said. 

The exercise shows the difference between “needs” and “wants” and even “whims,” Boni said. Judge needs and wants on merit and make a rule to wait 24 hours before buying anything on a whim. 

“Build a relationship with your future self,” Boni urged. “Will future me thank present me for this choice?” 

Keep that future self in mind when using the credit card, too, Boni recommended. Don’t dig too deep of a hole. 

Another tip Boni recommended is to put a name on your savings account. If it’s labeled “Future Me” it keeps motivation concrete. 

Also, consider investing in learning. Skills in Excel, financial literacy, writing and coding could yield healthy returns on investment. 

But first and foremost, pay yourself. Always bear in mind that money is freedom, not status. Saving it pays you later. Boni said, “Every dollar saved or debt avoided buys future options for you!”