You graduated from college and received your diploma. Now what! Now you have to face reality and face the real world. First, get a job. Next, figure out what to do with your money but don't spend it all. Forty-percent of Americans live paycheck to paycheck and seventy percent of Americans live above their means. It can be tempting to buy on impulse and spend your money on everything you see but slow down and pace yourself. Here are 6 tips to help you live below your means and stay out of debt.
1. Setup a debt payoff plan. Setup a debt payoff plan to prioritize your bills including student loans and credit card debt. Start by paying off the smallest bills first, then use the money paid towards a previous bill and apply it to the next bill and continue this process until all your debts are paid.
2. Pay more than minimum monthly payment. If pay the minimum monthly payment you will end up paying 2 to 3 times what you actually charged due to the interest and finance charges that accrue on your balance. Try to send extra towards your balance each month.
3. Pay with cash. Pay for purchases with cash until your credit card balances are paid in full. If you pay for an item with a credit card you end up paying 112% the original cost of the item.
4. Start with your company's 401K as soon as you are hired for your first job. Do research to see what plan has the best options to help you achieve your retirement goals.
5. Diversify. Control your risks by investing in various mutual funds that are a combination or low, medium and high risk to limit your losses.
6. Buy insurance – health, life, disability. Many Americans go into debt due to medical bills and lack of insurance. Get at least basic health, life and disability coverage. Coverage is cheaper for individuals.
No comments:
Post a Comment