I am graduating this August and I already have a job lined up (cardiac;)). At 23, I don't have a huge amount of experience with handling money. During college, I received about $800/month from the VA for education benefits. I realize now that before taxes, I will be making close to this amount of money in one WEEK.
I really feel like I need advice, tips, etc on ways to handle money. Better yet--a recommendation for a book, sort of a "how-to" guide on getting started in my financial life. I am still young and I don't want to go crazy and blow it. I don't feel like I am all that educated on money, especially topics such as how much of my money should go where, investments, retirement, savings, etc. I want to be smart about this and start young, so I don't have to suffer and worry too much when I am older.
the automatic millionaire by david byrne...really good advice, and once you set things up to automatically go out of your account, you don't miss the money if you don't have it to spend....
Invest in your future by starting a 401K. If you have health care expenses on a regular basis (like $50.00 for prescriptions each month), have some money going into a Flexible Spending Account (FSA) - it is tax free, but what you don't use at the end of the year is gone forever (I stock up on bandaids, tylenol, and motrin to burn the last of my FSA dollars). Also, have a certain amount go directly into your savings account each pay period, and don't even look at it - just forget about it (well, obviously balance your checkbook and make sure nothing fishy is going on). Its recommended to have at least 3 months of wages stashed away, just in case something were to happen (job loss, illness, etc).
You could always sit down with a financial planner - they will usually do a free consultation. They can help you maximize the amount of money that you take home.
Many of us when we make more money after graduation up our lifestyle with new cars, gadgets and a new home etc. This is where you could run into trouble, because while you can probably afford these things, do you need to. Don't upscale your lifestyle too much.
On the other hand life is short, so don't be a cheapskate to where you're pinching pennies and missing out. Balance is the key, but the scale should tip towards fugalness. I promise you when you're my age, you won't regret these behaviors.
Kudos to you and best of luck to you in all that you do.
Agree 100%. It's what I was coming here to recommend.
Also, run far and fast away from credit cards. And remember, you'll spend what you make, if you aren't careful...no matter how much or how little that is.
Another vote for Dave Ramsey here. Look around to see if you can get into a Financial Peace University class anywhere near you too. I've not gone, but I've listened to all of the cds and they're awesome, very inspiring.
I got the Suze Orman book at the library, but it seems to focus more on the young in debt, which I am not, woo. Still searching and taking more recommendations:)
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SillyStudent, ASN, RN
287 Posts
He starts with the get out of debt stuff, but he gives sound financial advice for lifelong financial fitness :)