6 strategies to be Financially Fit
If you finished college with a student loan debt, you’ll finish paying it off approximately in your late twenties or early thirties. This is also the time you’ll start saving for a house, get promotions, and seriously start saving for retirement. Keep your finances in check with these eight strategies to be financially fit.
Focus on your career
Since you are primarily relying on your active income, invest in your skills and continuing education for career growth.
Don’t live like your parents
It took your parents over 15 or 20 years in the workforce to achieve their current level of lifestyle. If you’re eating out as often as they do or drive a fancy car, you may be living beyond your means. Tighten the belt when you’re only starting to earn your own money.
Handle credit cards with care
Credit cards are a great way to get buried in debt if you’re not careful. However, credit cards are not entirely evil – you just have to use them right.
Choose loans wisely
If your student loan is low interest, you may not have to rush to pay it off immediately. You can invest the money in a mutual fund so it can earn more interest in the meantime. On the other hand, be quick to pay off high interest loans so the interest expense does not pile up.
Prepare for retirement
It’s never too early for retirement planning. Starting early even with small efforts will give you better chances of securing a comfortable retirement than saving big to catch up if you started late.
Save, save, save
And finally, don’t forget to save regularly until it becomes a habit. First, establish your emergency fund which should be equivalent to at least three months of your present income. Then invest the rest in a mix of mutual funds and other instruments, depending on your risk tolerance. That way, your money works for you.
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