I’m resolved! Now what?
Posted on January 17, 2008 5 Comments
I bet there are a lot of 20-somethings out there who pledged to get their finances in order in 2008. If you’ve made the resolution, you’re off to a great start. But once you’ve said it, what comes next?
Here are three small tips to get you moving in the right direction.
1) Read up. My personal finance journey started like this: I was sitting around the lunchroom/library with co-workers one random afternoon; they were discussing 401Ks. I blankly zoned out as they blah-blahed about something something related to finance. And then it hit me. These were my peers. They were making about the same amount as me. We all were in the same boat. But they all were managing to save some of their money and invest it for the future. I was not. I think I actually blurted out, “How are you doing this?” or “What’s a 401k?”
The conversation stopped. They looked at me like my face had just fallen off. They could not believe I didn’t have a handle on my finances. So I started asking more questions … such as, “How do you learn about managing your money?” I felt totally helpless.
The group told me I should should start doing online research, so I did. I found Ms. Money very helpful. They told me I should start reading the paper – specifically USA Today’s green section, so I did. I went to the library and read some Suze Ormon, too. And it all started from there.
S0… check out some PF web sites, like PFBlog.com, Ms. Money, CNN Money and Kiplinger. Read your regional paper’s personal finance site, and browse the USA Today green section. Use the crappy winter weather as an excuse to go to the library and take notes. Build your PF knowledge, and go from there.
2) Look into your company’s 401K options. A lot of companies actually match your contributions, so if you’re not putting in you actually miss out on free money. Let me repeat… FREE MONEY! Resolve to make your first contribution in January. If you can’t navigate the paperwork, ask someone else! They’ll be more than happy to help. Even if you feel like a total jerk who’s speaking a foreign language (fashion language vs. finance language, perhaps), you’ll be better off in the end.
3) Start a savings account. If you already have one, find out how much you want to sock away each month, and arrange for an electronic funds transfer so it happens automatically. Start small, if you have to. $25 per month is better than $0.
Hopefully these suggestions will point you on the right path. Good luck!
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5 Responses to “I’m resolved! Now what?”
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January 17th, 2008 @ 4:01 pm
I giggle reading this because my education and most of my employment has been arts (theatre) related. Conversations like that happen rarely, if ever, and NEVER while we were in our 20s.
Clearly the giggling is nerves since if I’m the person in my circle with the best handle on my money it has to be a sign of the apocalypse.
January 17th, 2008 @ 6:49 pm
Back in the 80′s for highschool, we at least had some education on personal finance, backing, checking and savings. There was nothing in college… even business and accounting courses were all geared to corporate financials. I hope current course requirements from Universities require some real life education before releasing educated guppies into the world. Otherwise they are bound to flounder (pun intended).
Very few parents take the time to teach their kids how to do it right. Probably due to the fact that they are emberassed to admit their own failures.
Use social networks and don’t be afraid to ask for help from those whom you respect. They might have just the right guidance you need.
January 19th, 2008 @ 7:38 pm
Both of my parents are in the finance industry so I guess I’m “lucky” that money mgmt has been drilled into my head from birth (it wasn’t a fun process). I never realized this stuff wasn’t common knowledge; I assumed that I was being taught financial responsibility b/c they were my parents and not b/c they are both bankers or what have you.
Do understand there are free professional (friends are a good place to start but use professionals, please) resources a plenty out there but if you can identify with the blogger – you are pushing 30 and haven’t been contributing to your company’s 401K plan and do not have some sort of savings account – get on it! You are WAY behind but there’s still time, you’ll just have to contribute / save a larger percentage of your income than your peers who, like me, have had a savings account since middle school and actively contributing to a 401K plan for at least ten years.
Don’t be scared, it’s like anything else: it’s easy once you know it … so stop what you are doing and go plan for your future. Who doesn’t want to retire early!?!?
January 21st, 2008 @ 3:34 pm
Good tips to get started. I never had any kind of education in personal finance until I got into it on my own, and that was two years into college. There was a stock investing project in high school but what I took out of that was that it was a type of game or contest. Then in college there was a big bubble and some easy money in the market. Not until the bubble popped and I started getting my own credit cards and student loan balances showing up did I have enough reason to even think about handling my money.
These ideas here are a great start. Everyone should go at least that far, it does make an amazing difference.
This year I’m hoping to get a little more detailed into the area of professionals like tony suggested. I’m putting together a financial plan and putting it, along with resources that help me, up on my own new blog.
January 22nd, 2008 @ 9:34 pm
I was taught a lot about finances as a kid, but not nearly enough. I graduated in May and am still adjusting to being in the real world, and still trying to figure out how to budget on my entry-level salary. I just wrote a blog about it here http://blogs.creditcards.com/2008/01/six-financial-survival-tips-for-young-professionals.php. Love your blog!