what is the best thing a person can do right out of college to prepare for their financial future?

Question

For instance, open certain kinds of accounts, or invest? but what kind? i want specifics. :)

Answer 1

Get a Job!!!

Answer 2

The very best thing you can do is to develop a spending plan that works for you. Many new grads are making more money than they have ever made before in their lives, but they are taking on more new expenses than ever in their lives. You need to take a step back and understand what you want/need to spend every month. Then look at your income to see if you can actually afford yourself. This was the biggest favor a professor ever did for me. I developed a budget for a salary much lower than my current salary. I still live very much in accordance with that budget, and have turned the excess into funds for a new car, a great apartment, savings for a house, and vacations too. For specific kinds of accounts, that will depend upon your personal goals.

At this point in time, only a year out of college, my investments in stocks are primarily for retirement funds, including my 401k provided by my employer. If your employer offers a retirement plan, and matches any funds, then join as soon as you are eligible. Save the percentage that is needed to obtain the full match of funds. It's all free money that your employer is providing to you, and it can be rolled over to another 401k or other investment if you leave the company.

Because I anticipate being able to purchase a home very soon, my savings for this are in a high interest savings account and certificates of deposit, accounts where I am guaranteed a return on my money.

Another tip for developing a spending plan, direct deposit some money from your paycheck to a savings account where it is more difficult to withdraw, so that you will have funds for an emergency or simply for a great vacation with friends.

Answer 3

I am no expert
Make a long term plan what will be needed savings retirement insurance etc, - don't worry plans can change but a plan gives you a life stratergy.
1. insurance is to guard against the losses you cannot cover.
loss of all your earthly possesions - renters homeowners flood
loss of income - disabilty (most will reduce by whatever SS payments you get after a certain period of time
loss of life - cover mortgage etc.
2. save - pay yourself first try IRA, or if your company matches 401K guess what if you invest up to the match what they give you is FREE money - hey bloke put a fiver in my bank and I'll give you another - hard chioce right
Many accounts can be set up through work or seperate for small regular deposits - if you live ok at one level bank your riase if you can.
3. learn about investments and how to make your money work for you - it can be a very enjoyable and profitable hobby
4. Advice is worth a good standard price for its normal value
pay nothing - the value is relative to the price
pay a competitive price for competive advice you break out even
(this is not to say that if you make an honest effort to learn
your own opinions are worthless)
pay above market price- its probably like some forgiegn
seamtress putting a American designer label on a knockoff - it
ain't worth what you paid for it
When paying always remember the other guy is selling
Remeber this commentary was provided free by a non expert
GOOD LUCK!

Answer 4

If you want specifics, you have to be specific! First you have to have an income stream. Your expense must not exceed your income. This gives you positive cash flow. You then invest the surplus cash to build assets. With the assets you can borrow against the asset. You now have yours as well as someone else's assets e.g. banks. The deployment of the combine assets gives the momentum to accelerate your income stream. Specifcs need other specifics e.g. how much of a risk taker are you. This determines the strategies available. Historically, shares give better returns than properties. In turn this gives better returns than term deposits and cash. However the returns reflect the risks as well. Equities have their "bumps". You need to be well informed and have the personality to ride the bumps. Even experts sometimes get it wrong. This can set you back in terms of your plans. There is no such things as a free lunch. The best advice is "get off your bum, start peddling like mad and don't live off your college laurels. That is just the beginning and there are lots of others like you. Life is a journey and not a destination". Good luck and from the tone of your note, you will need lots of it!!!

Answer 5

First, if your company offers a 401(k) plan, put in as much as you can afford. At the minimum, make sure you get the full company matching funds. Keep increasing this amount until you are putting in the maximum allowed by law. If you can get to 10% or more of your pre-tax income going to some sort of savings you will be well ahead of the race. Do it early so you never even feel the impact. Much harder to do after you are accustomed to having the money available for spending.

Answer 6

Personal experience: save money. Do it in any way or technique you want, under the bed, putting money inside a jar, opening a bank account (choose wise which one), etc. All depends your attitude and desire for assure a good financial future for yourself. By the way, of course you don't have to save all the money you may get in your hands, but try to save a small percentage of it, let's say 5-10% of your incoming, no matter where your incoming comes from. Greetings from Mexico.

Answer 7

Develop good cash management skills (live on less than what you make).

Get a checking account & savings account
Pay off debt
Open a retirement account (401k, IRA or both)