One of the biggest challenges for most couples in marriage is managing their money. Add to this the fact many couple fail to discuss their financial goals, whether finances should be combined, how debt will be managed and how credit should be used and disagreements over money can lead to marital disasters.
A book, Generation Earn: The Young Professional’s Guide to Spending, Investing and Giving Back has outlined some common sense ideas about how to eliminate some of the most common money woes.
Here are 6 Money Tips for Today’s Young Professionals:
1. Save up to one third of your income
Many of us have heard that saving 10% of our income may be sufficient, but some experts suggest it may take a little more to ensure a healthy retirement and to be able to meet some of your other future goals such as home buying and sending a child to college. Choosing to save this much money may be impossible at certain times in your life, but when it isn’t, it is a good goal. The truth is if you utilize automatic saving tools and save the money before it comes into your checking account there’s a good chance you may not even notice the money is gone.
2. Make sacrifices and spend money for your career
The truth is what you choose to spend your money on is important. Spending money on your daily latte may not be smart, but what about spending money on a nice business suit, educational class, training session or voice lessons (if you are an aspiring singer)? Some spending can pay off big. Keep in mind, as college costs have sky-rocketed, it is important to review whether the $40,000 per year college tuition will offer sufficient employment opportunities to justify the costs.
3. Identify your dreams and career aspirations
Accomplishing your goals may be as easy as identifying them and understanding the steps you need to take to reach them. Brainstorming with your significant other, family members, and friends can help you identify different careers or goals that may be good for you. After you have identified your career goals, see number two.
4. Pay off your student loans early
There is even a better recommendation than this: avoid taking out student loans for higher education. Avoiding a loan may mean going to school part-time or working and attending school, but the truth is a college education is no longer a guarantee that you will find good employment after graduation.
5. Invest now, don’t wait
If you wait to invest when you have enough money, the truth is, you never will invest. It’s an odd fact of life that most of us spend whatever money we have in our checking account. Don’t wait to open up a 401(k) account if your workplace offers it, even if you start by contributing just 2 percent of your salary.
6. Give back
Donating money to a charity, cause or church is healthy. It reinforces that you are blessed and there are others that are much less fortunate. If you are giving to a charity be sure to do research to make sure the money is spent wisely.
The truth is if you don’t get yourself into a financial crisis there is less to fight about with your spouse. Good decisions start early.
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