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.
From just $107.88 $24.99 for Kiplinger Personal Finance
Become a smarter, better informed investor. Subscribe from just $107.88 $24.99, plus get up to 4 Special Issues
Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of 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.
-
Dow Adds 646 Points, Hits New Highs: Stock Market TodayIt was "boom" for the Dow but "bust" for the Nasdaq following a December Fed meeting that was less hawkish than expected.
-
5 Types of Gifts the IRS Won’t Tax: Even If They’re BigGift Tax Several categories of gifts don’t count toward annual gift tax limits. Here's what you need to know.
-
The 'Scrooge' Strategy: How to Turn Your Old Junk Into a Tax DeductionTax Deductions We break down the IRS rules for non-cash charitable contributions. Plus, here's a handy checklist before you donate to charity this year.
-
I'm a Tax Attorney: These Are the Year-End Tax Moves You Can't Afford to MissDon't miss out on this prime time to maximize contributions to your retirement accounts, do Roth conversions and capture investment gains.
-
I'm an Investment Adviser: This Is the Tax Diversification Strategy You Need for Your Retirement IncomeSpreading savings across three "tax buckets" — pretax, Roth and taxable — can help give retirees the flexibility to control when and how much taxes they pay.
-
Could an Annuity Be Your Retirement Safety Net? 4 Key ConsiderationsMore people are considering annuities to achieve tax-deferred growth and guaranteed income, but deciding if they are right for you depends on these key factors.
-
I'm a Financial Pro: Older Taxpayers Really Won't Want to Miss Out on This Hefty (Temporary) Tax BreakIf you're age 65 or older, you can claim a "bonus" tax deduction of up to $6,000 through 2028 that can be stacked on top of other deductions.
-
Meet the World's Unluckiest — Not to Mention Entitled — Porch PirateThis teen swiped a booby-trapped package that showered him with glitter, and then he hurt his wrist while fleeing. This is why no lawyer will represent him.
-
Smart Business: How Community Engagement Can Help Fuel GrowthAs a financial professional, you can strengthen your brand while making a difference in your community. See how these pros turned community spirit into growth.
-
In 2026, the Human Touch Will Be the Differentiator for Financial AdvisersAdvisers who leverage innovative technology to streamline tasks and combat a talent shortage can then prioritize the irreplaceable human touch and empathy.
-
How Financial Advisers Can Deliver a True Family Office ExperienceThe family office model is no longer just for the ultra-wealthy. Advisory firms will need to ensure they have the talent and the tech to serve their clients.
