New College Grads – Prepare to Live a Financially Secure Life

Written by CFB Blogger. Posted in Blog

Another list for better achieving financial security, this time for you recent grads. These tips gleaned from Nicole Seghetti, writing for The Motley Fool. •    Build your credit Apply for one or two credit cards and use them monthly to show that you always pay your bills on time and in full. Credit card debt racks up quickly and insidiously –don’t let it happen to you. Overwhelming credit card debt is a leading contributor to bankruptcy. Using credit cards responsibly can help build your credit. In addition, many credit cards offer cash back or shopping/travel rewards for on-time payments. Read the fine print carefully before applying for the cards as finance charges vary significantly among cards. •    Make a budget Making a realistic budget (and sticking to it) will help you maintain a financial secure life. There are even free apps and software than can help. www.mint.com, for example, can help you set financial goals, track your monthly spending habits, remind you of upcoming bills and even send you an alert if you’re going over budget. This habit can help keep you and your family financially strong. •    Tackle student loan debt Seghetti avers that since student loans don’t require repayment until after graduation, paying them may be new to you. She states, “Making the minimum student loan payment is a must. But paying more than that amount each month will help those loans disappear even faster… And paying your student loan off faster will allow you to more easily save for future financial goals, like traveling or buying your first home.” •    Prioritize retirement savings If your employer offers a retirement plan, such as a 401(k), start contributing to it right away and make those contributions a habit. Seghetti writes, “Consider this: For a recent college grad earning $40,000 per year, contributing 10% of his or her salary starting on day one, rather than two years later, translates to an extra $211,000 in the retirement nest egg. That’s based on the following assumptions: 1.    You earn $40,000 per year from age 22 until retirement at age 66, with no change or lapse in pay. 2.    Your 401(k) returns 8% per year. 3.    You do not receive an employer match for your contributions. And about that last point: You should contribute at least enough money to take full advantage of your employer’s match (assuming they offer one). An employer match doubles your contribution and therefore your potential returns. And when you get your first raise, make sure your 401(k) deferral increases in line with your salary. Years down the road, you’ll be amazed by the amount of wealth you’ve accumulated.” We couldn’t have said it better ourselves. For experienced and knowledgeable Chapter 7 or Chapter 13 personal bankruptcy assistance, you can rely on the attorneys from Client First Bankruptcy who have helped thousands of satisfied clients discharge their overwhelming debt. For your free initial consultation, please call our knowledgeable and compassionate lawyers toll-free at 800-383-6004.  We answer our phones Monday-Friday from 8:30 a.m. – 6:00 p.m.  And log onto www.clientfirstbankruptcy.com for vital and timely bankruptcy information 24/7 so you can get the information you need when the time is right for you.