Young people have it made. They have their whole lives ahead of them, and ample time to plan for retirement. The trouble is that few actually plan. Even those that save a decent percentage of their take-home pay rarely plan for the future and fund tax advantaged accounts like they should. But the good news is that you can achieve your financial goals if you start early enough.
Debt
So many financial advisors recommend using a low-rate loan to consolidate debts and reduce annual interest expenses Home equity loans range anywhere from 8% and up, while credit card rates are around 20% per annum; running a monthly balance will run you big money
Funding Retirement Vehicles
When you get your first full-time job, consider setting up a 401(k) plan. This will allow you to put about 15% of your gross income into the plan.
Taxes
Young people often don't think about taxes, but they should. Before buying a home or living in a certain area, consider checking what the property tax rate is. Perhaps it makes more sense to live in the next town over.
Planning for a Family
Whether you are getting married, buying a house, having a child, or making some significant change in your life, you should always re-evaluate your financial situation.
