June is graduation season, and for those who are moving on to higher education or entering the workforce for the first time, it is important to carry the timeless wisdom that comes from beyond the textbooks. Moreover, we could all use some reminders of the lessons that we sometimes overlook in our finances. Here are four:
1. Start saving for retirement as soon as you possibly can.
Many jobs today offer retirement savings plans, such as 401(k)s. Employers will often match a percentage of the contributions that you make, so you have an immediate multiplier just by putting money into the plan. Don’t ignore this opportunity, regardless of your stage of planning.
2. Piling up debt really hurts.
Especially for the college graduates with student loans, but even for those who have excessive mortgages and big credit card bills, having debt is a huge burden. Work to eliminate the high-interest debts, and if you cannot afford something, then do not go deep into debt to buy it. If you want something that is nicer, save for it now and let interest work to your advantage instead of against you.
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of Kiplinger’s expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of Kiplinger’s expert advice - straight to your e-mail.
3. A little self-control goes a long way.
Do you really need those luxurious things that you see in the media and in the stores? A good policy is to wait for three weeks after you think that you need something that you want. If your feelings change and make you look at something else, then start the clock again. Another idea is to count out the cash on a table for what you want to buy instead of running to the credit card. The more expensive the item, the more cash you will see on the table. You may change your mind after seeing the money in that way.
4. The future is closer than you think.
You may be reading this letter as a recent graduate, or you may read it wondering where all the years went since you graduated. If you are trying to find a job, make connections, learn a skill/language, save money, reduce debt or complete a big project, regardless of how hard the task may appear, do it now. The last thing you want is to find your future as a series of missed opportunities and closed doors, so empower yourself today.
Did you know? Now could be a great time to find out your credit score and see your credit report, especially if you are moving into a new place or on your own for the first time. The earlier that you can find out if there are errors, excess credit card applications, late payments or other issues, the quicker you can work to repair them.
-
-
McDonald’s Gold Card: The Mysterious Piece of Plastic That Gets You Free Food for Life
Order from the McDonald’s app in December for a shot at winning a rare McDonald’s McGold Card and free food for life.
-
Microwave vs Air Fryer: Which is Cheaper for Cooking?
Can the trusty microwave be beat by the air fryer for cost savings in the kitchen?
-
How Parents Can Teach Their Kids About Cryptocurrency
Starting with explaining the concept of money to begin with can help them grasp the concept of digital currencies.
-
How Do You Overcome Stage Fright? These 6 Tips Can Help
Many people fear public speaking more than they fear death, yet advancing professionally could depend on whether you make a good impression when you step up to the microphone.
-
2 Ways Retirees Can Defuse a Tax Bomb (It’s Not Too Late!)
If you’re retired and find yourself sitting on a “tax bomb,” you may think there’s nothing you can do. But two strategies could seriously reduce your taxes in retirement.
-
5 Trends in High-Net-Worth Philanthropy
Wealthy families and organizations are giving more to charity but also targeting funding to fewer grants in their efforts to create bigger impacts.
-
6 Ways a DAF Can Make Your Year-End Giving Better Than Ever
Giving appreciated assets instead of cash could be the most tax-smart move you can make with a donor-advised fund, but wait, there's more…
-
Life Insurance Strategies to Consider When You Own a Family Business
Not only can life insurance replace lost income, but it can help with estate taxes and provide a sense of fairness for family members who don’t participate in the business.
-
Short-Term Investments to Protect Against Inflation and Market Volatility
Rates on Series I savings bonds, T-bills and fixed annuities are all above historical averages and could serve investors well during turbulent times like these.
-
What’s the Difference Between Average and Actual Rate of Return?
An average rate of return can mask losses over time, so what investors really want to keep an eye on is the actual rate of return.
