We, the young professionals generally make huge financial mistake. It is just because we generally don't plan out the financial matter efficiently. We are generally so much engrossed in our education, career, technology and everything else that we don't give much importance on our financial goals. But I would suggest you that it is the peak time for young professionals who are at the age of 20's to mid 30's to hit high impact on financial milestone.
I know that all youngsters don't have resources to fulfill their financial goal, but at least their is no harm if we can strive to reach these goals. I can only say that, if you start thinking about your financial aspects it would fetch you with maximum benefits at your latter life. Following are my 5 suggestions for all young professionals. I would love if all of you read these suggestions and would appreciate your additional recommendations.
1. Emergency Funds
I am very sure that this recession has made us learn a lot. Even we know that at present scenario nobody's job is safe and it is equally hard as hell to find new right job. Thus it is necessary for all of us to have certain saving from our income, so that we can build our emergency fund. If all of us have the option for emergency fund it would have been much easier for us to face this sudden downturn economy. Without our emergency fund to back up, we might have to stand in a situation of high consumer interest debt. And if it had been much longer we might have to sell our home.
2. Collect your Full "Pension"
Pensions are nothing but weaker replacement of 401(K) and one should take the maximum advantage. It is the crime not to get at least your employer's full matching contribution in your 401(K) on annual basis, if one has the fund to do so. Simultaneously one should also think about funding your IRA. In fact I can suggest that IRA's have a lot more control over 401(K).
3. Don't make yourself fall with credit cards
I know that credit cards are one of the most integral thing which all of us carry. But making efficient use of theses credit cards is another important part for every young professionals. I am not saying you to ditch credit cards, unless you carry balance month to month. A good credit report will pay you profit in long run. One should always be cautious about your miscellaneous fee and penalties.
4. Monthly Budget Planning
If you want to be financially secured it is necessary for you to plan out your budget carefully. Expecting financial success without budget is equivalent to an explorer finding new land without map and compass. You should always calculate your expenses keeping in mind your income sources. You should always have an eye for investment too, which can yield you future benefits.
5. Contribute to a Roth and a Traditional IRA
One should always look for a discount broker who can assist you with no-fee IRA. Both IRA and Roth can give you the benefit to split your tax benefits between your present and your retirement.
Thus I would suggest all young professionals to wake up as early as possible and opt for healthy financial goals. Please let me know if you would like to add other ways.
I know that all youngsters don't have resources to fulfill their financial goal, but at least their is no harm if we can strive to reach these goals. I can only say that, if you start thinking about your financial aspects it would fetch you with maximum benefits at your latter life. Following are my 5 suggestions for all young professionals. I would love if all of you read these suggestions and would appreciate your additional recommendations.
1. Emergency Funds
I am very sure that this recession has made us learn a lot. Even we know that at present scenario nobody's job is safe and it is equally hard as hell to find new right job. Thus it is necessary for all of us to have certain saving from our income, so that we can build our emergency fund. If all of us have the option for emergency fund it would have been much easier for us to face this sudden downturn economy. Without our emergency fund to back up, we might have to stand in a situation of high consumer interest debt. And if it had been much longer we might have to sell our home.
2. Collect your Full "Pension"
Pensions are nothing but weaker replacement of 401(K) and one should take the maximum advantage. It is the crime not to get at least your employer's full matching contribution in your 401(K) on annual basis, if one has the fund to do so. Simultaneously one should also think about funding your IRA. In fact I can suggest that IRA's have a lot more control over 401(K).
3. Don't make yourself fall with credit cards
I know that credit cards are one of the most integral thing which all of us carry. But making efficient use of theses credit cards is another important part for every young professionals. I am not saying you to ditch credit cards, unless you carry balance month to month. A good credit report will pay you profit in long run. One should always be cautious about your miscellaneous fee and penalties.
4. Monthly Budget Planning
If you want to be financially secured it is necessary for you to plan out your budget carefully. Expecting financial success without budget is equivalent to an explorer finding new land without map and compass. You should always calculate your expenses keeping in mind your income sources. You should always have an eye for investment too, which can yield you future benefits.
5. Contribute to a Roth and a Traditional IRA
One should always look for a discount broker who can assist you with no-fee IRA. Both IRA and Roth can give you the benefit to split your tax benefits between your present and your retirement.
Thus I would suggest all young professionals to wake up as early as possible and opt for healthy financial goals. Please let me know if you would like to add other ways.
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