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Getting your first job is an exciting endeavor! There’s the introduction of a consistent schedule, the potential friendships with coworkers to be made, and perhaps most importantly, the paychecks!
Fiscal responsibility begins with adulthood, so whether that’s right out of high school or as a new college graduate, saving money and setting goals go hand in hand. And, truth be told, when you get your first job, it may not be as high-paying as you’d like. Therefore, it’s essential to set yourself up for success from the get-go to ensure you will be financially secure for years to come. Put your money where your mouth is when it comes to saving and investing so you can revel in your riches, both professionally and personally!
Real estate is a stable investment that’s not likely to take a large plunge when referencing market volatility. However, there are a few considerations to take into account that will aid you in the long run when you do decide to buy a home.
First, you should examine your financial situation closely. Do you have enough money saved up to cover the costs associated with buying a home? Remember, there’s much more money that goes into a home other than the monthly mortgage payments. When you buy a home, you will be in charge of paying for things like closing costs, property taxes, homeowner’s insurance and legal fees upfront. Be sure to include the price of a home inspection as well so you can be sure you’re making a more informed purchase.
Next, if your ultimate choice is that buying a home is right for you, take a deep dive into local real estate. While you might think you have an idea of where you want to live, going the extra mile by doing research into the most prosperous neighborhoods will help guarantee you won’t lose money over time. You can start by looking at comparable homes in a certain area to see what the resale potential of your house will look like in a couple of years.
While you may think you have all the time in the world to save up for your retirement, saving up enough to live comfortably can be a much bigger pull than first anticipated. Luckily, there are plenty of easy ways you can begin working on this goal sooner rather than later.
For starters, look into your company’s 401k plan. A 401k plan takes a specific amount from each paycheck and allocates it to a different place that will accrue value as years progress. The best part? Many workplaces offer a contribution match up to a certain percentage for employees who have been on the payroll for a set amount of time, like a year. The average amount that an employer will match is 4.3% of a person’s paycheck each month, making this strategy a worthy investment to make.
However, some businesses don’t offer 401k plans, especially if you’re an hourly paid employee. In these cases, you will have to rely on your own monetary expertise to pull through. You can tackle this task head-on by creating a budget for yourself and sticking to it. Use a spending organizer or budgeting app to track your expenditures in real-time.
Or integrate helpful money-saving tricks into your lifestyle that will aid you in padding your bank account and building your nest egg. Buying off-brand products, shopping for discounted items or bundling subscriptions are all great ways to make sure your spending doesn’t turn into splurging. Don’t forget though, it’s important to reward yourself every now and then! Instead of constricting your budget too heavily, sprinkle in perks every now and then to help keep you motivated and on track.
One thing that is sure to slow you down when it comes to your future financial success is debt. Debt can weigh you down and can make it impossible to get approved for loans or other opportunities for revenue. However, there is a way to make sure you can manage your debt without going broke.
The average amount of debt for the millennial generation can run up to $80,000 — and that’s just in student loans. When you factor in other obligations like living expenses, credit card payments and medical fees, debt can seem insurmountable.
The good news is though that the sooner you start paying off your debt, the sooner you will be free from the financial commitment. A key indicator for many people of their worthiness to borrow is your debt-to-income ratio. This factors in how much debt you are able to manage compared to what you make on a monthly basis.
Not only will your debt-to-income ratio decrease as you pay it down, but you also have the ability to improve your overall credit, making you look more desirable to lenders when they assess your credit report in the future. So, while there are limitations that may be imposed on you based on the amount of debt you have, the amount of money you make can give lenders a bigger picture of your financial situation.
Financial security is a common goal for many young people as they learn to navigate the professional landscape. As you age, more and more possibilities will open up for you. Thus, it is crucial to make sure good habits start early. No matter what you decide to do, making sure you are comfortable with an investment is always the way to go.