Hello, my name is Rhonda. If you have financial goals, this blog can help you achieve them. A few years ago, I realized that I didn't have a good plan for my future and I wondered if my financial needs would be met after I retired from my job. I immediately started planning for my future by speaking with a financial advisor and I learned a wealth of information at our meetings. By following the recommendations of my advisor and by learning everything I could about finances and money, I now feel very secure about my future. If you need financial help for retirement planning, college savings or even for an emergency fund, you can get sound advice by reading my blog. I believe that by following a few basic strategies, everyone can meet their goals and be financially secure.
Graduating college and getting your first job is very exciting. Many recent grads are making more money than they have ever in the past and might feel like they are on top of the world. However, if you are not careful, you can easily fall into debt and financial ruin. This is why it is important that as you graduate college and join the workforce that you have some healthy financial habits. Here are a couple things you can do.
1. Save More Than You Think You Can
As your paycheck grows it is important that you start healthy habits now. For example, many people swear by the 80/20 principle. This means that each time you get your paycheck you should immediately put 20 percent of the amount in your savings account. Then the rest is what you can live off of.
If you don't start the habit of saving now, it will only become harder with time. For example, if you have all of your paycheck ready to spend, then it will seem like you need 100 percent of the paycheck to survive and saving will become a burden each month. However, if you start the habit now of only living off 80 percent it will be easier to manage.
2. Start Investing Now
Although you might think that investing for the future is for people who are older, the earlier you start, the more money you will get. There are so many incentives that are offered to young people, like ROTH IRAs, 401ks and so much more. For instance, investing in a ROTH IRA now can save you a good deal on taxes in the future. If you take advantage of these programs early, the interest will work to your benefit so that you can have more wealth and freedom to retire when the time comes.
3. Focus on Becoming Financially Independent, Not Rich
Setting goals is an important part of dreaming big. This is why it is important that you have goals that you are working for each day. As you start your career you should focus on becoming financially independent rather than rich. Becoming financially independent comes from the way that you spend your money rather than how much you make. You can become wealthy through healthy spending habits, even more than how much you make. This comes from creating a budget, living off less than you make each month, and going without in some cases. There are many people who make lots of money, but never have financial freedom because of destructive spending habits. Don't let this be you. Start young, and enjoy financial freedom throughout the years.
By doing these things you can enjoy the benefits of financial security through personal banking.