Postgrad Finances

[AngryABCGirl]

So I'm 22 and just starting out, any advice on what I should be doing with my money, or future money I will have?

[LaiSteve66]

So I'm 22 and just starting out, any advice on what I should be doing with my money, or future money I will have?

1) Start saving for your retirement now. I put 10% of my money into 401K. The earlier you start saving, the easier it is.

2) focus on paying off debt/college loans, etc.

3) Try to save 6 months living expense to help cope with unexpected job terminations/layoffs etc.

This is some pretty basic elementary stuff. Maybe one of our more financially savvy members can give you advice on more sophisticated stuff.

[MarshalStealth]

So I'm 22 and just starting out, any advice on what I should be doing with my money, or future money I will have?

Agreed with Mr. Lai. Save your money.

Look at funds like Vanguard and good saving accounts like ING. :cool:

[Yeahman]

The order that I'd do things:
1. 401K up to your employer's matching point.
2. 6 months salary in liquid investments (e.g. stocks or money market).
3. Investments with returns greater than the interest on your debt.
4. Pay off debt.
5. Buy a home.
6. Buy toys.

Buying a home won't always be at #5 though. It could be in the same category as #3 depending on the housing market, interest rate, and how long you plan on living here. But generally, on average, it's not as good as paying off your existing debt.

[kimpossible]

This is in addition to what the gentlemen have said above.

Stave off the debt peddlers. Limit your credit cards to one, maybe two max. Don't carry a balance - pay it off monthly. I've seen many a person fubar'd because of credit card debt.

Build up cash savings first before you start investing in stocks, bonds, etc. Stocks, mutual funds are all gambling so make sure you build up a separate fund from your savings for investment purposes that have no fixed or guaranteed rate of return.

This is just our position but I'd hold off on any home purchase for a while. Real estate is a nice asset but there's a whole set of associated costs with purchasing and maintaining it that most people don't include when looking at owning vs. renting. The exception to that is maybe if you want to go in on a rental property with family. In our case that worked out well for us and I think a few people on YW have had positive experiences with it as well.

Right now cash is king. You can't go really wrong with building up your reserves and staying out of debt as much as possible. There's a really nice WSJ booklet on investing. If you can get a copy (it's not expensive) it's nice to go over. That way you can build up a strategy on investing and make informed choices on risk/return once you have the cash.

Living at home is always good, too. Oh, and grad school is expensive. And the insurance sucks.

[bunny4]

Wow..thanks for your advices guys! how helpful