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I was interested in learning about any savings advice or tips you may have for young 20-somethings and/or recent college graduates, especially those struggling with high student loan burdens and credit card debts. All feedback and insights are much appreciated.
First, if your employer offers a 401k or equivalent then you should contribute at least to the point where you get matching funds and invest in a broad stock market index fund for your retirement. Second you start working off the debts, credit card first
I was interested in learning about any savings advice or tips you may have for young 20-somethings and/or recent college graduates, especially those struggling with high student loan burdens and credit card debts. All feedback and insights are much appreciated.
Spend less money.
Biggest thing to start doing is stop buying things you don't need on credit cards until you can not carry a balance. And that doesn't mean putting your necessities on the credit card so you have money to buy luxuries with cash either. You don't don't need $5 Starbuck fixes.
$200/mo for food
Cut utilities (iPhone, expensive TV packages)
Get a roommate
Get rid of the car if feasible
No need to necessarily be too drastic about it, depending on income/expenses which nobody knows except you.
You know, people can tell you how much to spend on each area of your expenses all day long but it won't help you any. Only you know your situation.
The best advice I can give you is to sit down and write. Make a list of your priorities, needs and wants. Then write out how much you need to spend in each area and then make sure to create a buffer. For example, I know that I spend approximately $60 on gas each week so I budget for $70. Cut out non-necessities, I know that is kind of a given but I figured I would mention it anyway. A big thing in getting on track financially is to know what and how much you are saving for. You need exact numbers. You need goals. Write a list of weekly goals and put it somewhere you can see it often. Educate yourself, invest in a book. I recently read a book called 'Get a Financial Life' for those in their 20's and 30's. It is fantastic.
Feel like you don't make enough? First reevaluate everything you pay for and see if there is a way to make it cheaper (Cable, internet, insurance, etc.). Look into ways to make extra cash from home, look it up on google and you will receive a plethora of information.
Lastly, you have to self-discipline. It will be really hard to skip some of the things you are used to paying for, but it is worth it to receive financial freedom. Stick to your budget and you will get where you need to be.
Start out by putting 10% of your gross towards retirement, come what may. Add to that at least half of any future raises or windfalls. Never touch it. Invest in nothing but total stock market mutual funds. Thank me in 30 years.
I was interested in learning about any savings advice or tips you may have for young 20-somethings and/or recent college graduates, especially those struggling with high student loan burdens and credit card debts. All feedback and insights are much appreciated.
Why did you rack up a lot of credit card debt? Is this likely to happen again in the future?
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