Stop Waiting for the Next Paycheck
Beginning your working life with good financial decisions doesn't call for complex moves. It does require discipline and a long-term outlook. This commitment can help get you out of debt and keep you from a paycheck-to-paycheck lifestyle.
• Outstanding debt is one of the biggest obstacles to saving.
• Disability insurance is a major safeguard against financial trouble if you're out of work for an extended period.
• Most experts recommend saving at least three months' worth of living expenses in case income stops. An easy and painless way to fund an emergency cash account is through an automatic savings plan.
• Money-market funds are a potentially higher-earning alternative to bank savings accounts. But money-market finds can technically lose money (though they have met their financial obligations), and yields will fluctuate, unlike savings accounts. Also, savings accounts are FDIC-insured.
• Tax-advantaged retirement plans are a terrific way to help build long-term financial security.
Checklist• Buy additional insurance coverage if necessary.
• Use savings from your newly revised budget to pay off debt ahead of schedule and accumulate enough money for your emergency savings account.
• Consolidate high-interest debt in a single low-rate account.
• Consider scheduling a meeting with a financial professional to review your plans for pursuing your entire range of goals.
