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Way to go! You made it. Exciting. Fun. Entire life ahead of you. Scared. Unsure. This is your time to apply everything you learned to either college or a real career. Whether it is four years of high school or college you just finished, you deserve congratulations and a little rest. Some Immediate Advice: Enjoy the summer but don’t forget to plan for your future too.
If you are just out of high school, chances are you are thinking of college in the fall or maybe taking a year off to get a job – either choice requires some planning. If you have just graduated college, the stakes are a little higher because you are now officially in the real world. Since both events can also be a little intimidating, I am dedicating this financial column to each of you to offer a MUST DO list to build better financial health.
Before summer break: |
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Get as organizes as possible |
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2. |
Sit down and talk with your parents about money (now is the time for you to have a better understanding of savings, credit, checking accounts, car loans, medical and life insurance, etc.) |
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Write out a 1 year plan (in some level of detail) |
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a. |
What exactly will you be doing at the end of summer? |
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b. |
Where will you live? |
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c. |
How much money will you need in what type of accounts? |
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d. |
What type of budget will you need? |
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4. |
Get rid of old stuff you won’t need or use – go to Goodwill (don’t forget to get a receipt so you can take a write off later on your taxes) |
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If you have a car, get any necessary maintenance done, so you won’t have to worry about it when you start college or your job |
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When summer is almost over: |
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Write out some goals for your upcoming year (this is not the same as your detailed plan) |
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a. |
I will start my new job and not miss a day before Christmas OR I will take 15 credit hours my first semester in college and get no less than a 2.8 my first year |
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I will join my company’s 401k plan in my first job and save at least 10% of my salary OR I will earn $3,000.00 for pay in a part-time job during my first semester at school and I will save 10% of it in a ROTH IRA |
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Read a finance book |
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Talk with an accountant to determine what you should be claiming on your W-4 form (you do not want to overpay Uncle Sam) |
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Update your address book with all your old teachers (those you liked anyway) and your friends correct addresses and phone numbers – you will never know when you are in need of a friend. Remember the old saying “it’s not what you know, but who you know” that will help you in the future. |
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If your parents are volunteering to take you shopping for that new apartment or dorm room, bypass the cute curtains or lamp and go for soap, shampoo, toilet paper, paper towels, detergent, soup, and coffee in bulk. The money saved and wisely invested will be worth a far larger amount in 3 years than the pink and white in style pair of shoes! |
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Read a good business or real life lessons book like one of the following: |
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Purpose Driven Life |
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b. |
The 8th Habit: From Effectiveness to Greatness |
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c. |
The Millionaire's Mind |
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When your summer is all over, consider my final financial tips for you to focus on in your near future to build good fiscal health: |
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Sweat the small stuff (coffee, soda, candy, dinners out) that adds up to big amounts of money over the next 5 – 10 years |
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Pay yourself first – what you don’t see, you can’t spend |
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Learn about compounding and why time is on your side |
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Remember the acronym: MSI |
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M - make as much money as you can (negotiate your pay) |
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S - Spend as little as you can (in other words, save more) |
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I - Invest your money wisely and while you are young |
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| Good luck with your future and if you have any specific questions, feel free to write me at my website HowToSpendRight.com. |
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