\"\" \"\" \"Image

\"\" \"\" \"Image

\"\" \"\" \"Image

Six Steps To Getting Off on the Right Foot Financially

– Posted in: Managing Your Finances, Money Management, Smart Banking

One of the most vital aspects of growing up is learning to manage our money. It is unfortunately, one of the least covered things in our schools and upbringing. Some parents spend the proper amount of time on this, but the vast majority never get around to it. Following are six steps to get off on the right foot financially when you head out into the world. Hope there is still enough time to work this as well into your New Year Resolution 🙂

Six Steps To Getting Off on the Right Foot Financially

Learn to budget for the long term

Most young professionals budget for next month rather than next year, much less the next thirty years. Learning to budget for the long term is a vital skill that you must learn quickly to get your financial world in order. Consider the future from the very start and you will be ahead of the majority of young adults getting started.

Forget the “rewards” when they make you overspend

Rewards cards are all the rage these days but they are a bit of a spending trap. If you spend money on a credit card simply to get a reward, you are kind of defeating the purpose. Instead, get the best rate you can get. That will give you more than enough money to get your own rewards. If you can do both, great.

Learn to multi-earn

Multi-earning is exactly what it says it is. A person is capable of going out and earn as much as possible and there is nothing wrong with that. The best situation is the one where you have several different avenues of income. This might be a blog, a side job or even a hobby. Whatever the case, you should always have some ways of earning on hand that you are good at. It will help you be more diverse as well.

Make your emergency fund a habit

Having an emergency fund is the single most important thing you can do financially. Put that money back every single paycheck like clockwork and never think you have enough. This will keep you insulated when the economy dives, you lose a job or some other emergency pops up. Make it tough to get to as well so that you don’t tap into it for every little thing.

Plan to not have Social Security

Social Security is no sure thing and you can be reasonably sure that you will need plenty in retirement. This is part of that budgeting long term thing we mentioned above. Plan for your own retirement and if other funds are available, you will have added security.

Get a solid accountant you can trust

You can follow all the advice in the manual and mess up a tax return to ruin it overnight. Getting an accountant to take care of your taxes and paperwork is a cost that is worthwhile at all times. This is especially true if you ever get audited.

Have a financially  rewarding year everyone! Good Luck!


27 Comments… add one
Cher January 2, 2014, 6:50 pm

Thanks for the fabulous advice! One of my goals for the new year is to get out of debt and stay there! I’m ready to make it happen!

Jenn January 2, 2014, 7:21 pm

Great tips! I don’t think a lot of people realize the social security one, you have to plan that most likely it will not be there for my generation at least.

Michele January 2, 2014, 7:51 pm

Being a semi retired bookkeeper has it’s perks-like knowing what I’m doing financially—-so—-have you ever heard of the shoemakers son who had no shoes?

Vinma January 2, 2014, 8:04 pm

haha..yes I have Michele! I know what you mean 😉

Angel January 2, 2014, 8:09 pm

Very good tips! Many people don’t follow sound financial advice often enough… thanks for sharing your expertise. God bless! 🙂

Corinne January 2, 2014, 9:37 pm

These are all great tips! My favorite financial advice came from my mom. Rather than encouraging me to save 10%, she told me I should always try to live off half of what I earn. When I surprisingly decided to stay home with my kids rather than return to work, I was glad that we were already used to living off of one income.

amanda January 3, 2014, 3:36 am

i didn’t grow up budgeting and it definitely affected me through colleg and a bit beyond…

Marika January 3, 2014, 4:55 am

The only debt we still have is the mortgate on our flat, which should hopefully be all paid by end of this year. Nevertheless all these are great tips to be in a better financial position overall.

Terry January 3, 2014, 8:03 am

Very good tips! One day, I might have to put them to use. Right now, I let my Hubs take care of all our finances. It is great for me because I have no stress, if I want money, I just hold out my hand.

Robin (Masshole Mommy) January 3, 2014, 8:25 am

I am married to an accountant, so I have that one covered LOL 🙂

We are pretty decent with our money – I think.

monica January 3, 2014, 9:29 am

These are all very helpful tips. Especially in the new year!

Theresa January 3, 2014, 1:38 pm

These are all great tips! I especially agree with the rewards and overspending. My husband has a habit of buying something we don’t need just for the reward. Drives me nuts!

Samantha January 3, 2014, 2:50 pm

Great tips as always. We are trying to teach our 15 year old son about saving money and credit cards.

Kristen from The Road to Domestication January 3, 2014, 2:56 pm

I agree with all of these, especially the habitual emergency fund!

becca January 3, 2014, 4:34 pm

wow these are really great tips for starting your financial security thank you

katherine January 3, 2014, 4:48 pm

These are really great tips for anyone who wants to learn about money

Pam January 3, 2014, 6:50 pm

Those are some great tips–especially about having a good accountant. We had a bad one for a while and he cost us money.

Vincent January 4, 2014, 6:57 am

I am very proud of you daughter.be on track.God Bless!

Vinma January 4, 2014, 12:07 pm

Thanks Apacha. Your words mean a lot to me…

Elle January 7, 2014, 4:52 pm

Good tips Vinma. I like to have a ‘fun jar’ which I put my change in each day. It’s amazing how quickly it adds up. Something handed down from grandma!

Vinma January 7, 2014, 8:26 pm

I like the sound of Fun Jar Elle. May be I should start one at home 🙂 Great idea!

LindySez January 7, 2014, 7:39 pm

My husband does a quarterly snapshot of our finances, so we always know where we are and where we are going. We do not count on Social Security but I sure hope it’s there, I sure put enough money into it!

Vinma January 7, 2014, 8:25 pm

That is great Lindy. Its always good to know where we stand when it comes to your Finance.

Jessica January 7, 2014, 8:24 pm

Wonderful tips, Vinma! I have two big financial goals this year: Get out of debt and set a budget (that I will actually stick to!)

Vinma January 7, 2014, 8:25 pm

Good Luck Jessica! You can do it 🙂

Tammy January 8, 2014, 1:56 am

Great advice Vinma! I totally agree with the emergency fund. There’s ALWAYS an emergency…

Tatjana February 20, 2014, 3:35 pm

Thanks for the advice! I really need this. Multi-earning FTW!

Leave a Comment