I receive newsletters from business associates in many different fields as they often have timely information I find useful for myself or those I know. Today I’m going to share tips from the newsletter of Tim Thompson, a licensed financial planner with Centaurus Financial.
Congratulations! College has prepared you for the real world in many ways. But there’s one subject that probably wasn’t covered — personal finance. So, to prevent you from digging yourself into a financial hole, here are five financial rules to live by.
Set up a spending plan
Add up your nondiscretionary expenses (rent or mortgage, utilities, etc.). Then, figure out how much you can spend on discretionary items. Keep track of spending to stay within your budget.
Spend less than you make
It sounds simple, and it is. Let this rule guide you throughout life.
Pay your bills on time
Set up a system for paying your bills before their due date. Late payments result in fees and penalties, which aren’t in your spending plan (Rule #1) — and may adversely affect your credit rating.
Keep credit under control
Try to pay your credit card bills in full, on time, every month. If you don’t, fees and interest charges may be added, potentially increasing the principal amount you owe. Allowing unpaid balances to grow is not part of the plan (Rule #1 and Rule #2).
Start saving for retirement
Yes, seriously. Investing even a small amount early in your career can have a big influence on how much you have for retirement.
If you’d like more information, Tim can be reached at (310) 792-7032.
This is important information for young adults. Please share it with those you know who could benefit from reading these insights.
Candy
