✓ Avoid consumer credit. The use and abuse of consumer credit can cause long-term financial pain and hardship. Shun making purchases on credit cards that you can’t pay for in full when the bill arrives. Here’s the simple solution for running up outstanding credit card balances: Don’t carry a credit card. If you need the convenience of making purchases with a piece of plastic, get a debit card instead.
✓ Get in the habit of saving and investing. I’m often asked, “At what age should a person start saving?” To me, that’s similar to asking at what age you should start brushing your teeth. Well, when you have teeth to brush! So I say you should start saving and investing money from your first paycheck. Try saving 5 percent of every paycheck, and then eventually increase your saving to 10 percent. Ideally, you should put your savings into retirement accounts (through an automatic deduction) that offer tax benefits, unless you want to accumulate down-payment money for a home or small-business purchase. (You’re probably not thinking about buying a new home or retiring, though, if you’re just entering the job market.) If you’re having trouble saving money, track your spending and make cutbacks as needed.
✓ Get insured. When you’re young and healthy, imagining yourself feeling otherwise is hard. But because accidents and unexpected illnesses can strike at any age, forgoing health insurance coverage can be financially devastating. When you’re in your first full-time job with limited benefits, buying disability coverage, which replaces income lost because of a long-term disability, is also wise. And as you begin to build your assets, make a will so that your assets go where you want them to in the event of your untimely passing.
Get started to develop the attitude and mindset that guarantees financial success.
Tags: financial success, savings, saving, investing, insurance, credit
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