Those who know me know I’m a bit crazy/OCD when it comes to certain things. Planning and organizing definitely fall into that category. Today I stumbled upon a pretty awesome post from a fellow 20-something who does the same.
The post was both refreshing and kind of saddening. I took the Schwab Financial Fitness Test, and like Michele, my score is definitely lower than I would have though or hoped it would be. I scored a 68.
It was definitely awesome to see all the things I’m doing correctly: have health insurance, contribute at least 12% of my income to my retirement account, etc. But seeing the things I don’t do well made me sad. Do I have enough money to cover me if I become unemployed for several months? Nope. I haven’t quite rebounded from my “I finished grad school but still can’t find a job and have to start paying back loans” blow to my savings account. I mean can I get partial credit for knowing that I should have something like that?? lol
But seriously, it’s never too early or too late to get started on managing your finances. These are some easy tips I can recommend:
- Make a budget and stick to it. I was introduced to mint.com a while back and I LOVE it. It tracks your spending for you, reminds you of upcoming bill payments, and makes charts and graphs of your spending trends. And it lets you know instantly if you’ve overspent in any of your budget categories.
- A book I really enjoy is Get a Financial Life by Beth Kobliner. My first boss gave me this as a graduation gift when I finished undergrad. It was truly eye-opening, especially since I was literally scraping by on the salary I was making at that job.
- Contribute to your retirement account starting the day you get your first job. Even if you can only afford $100 a month, the amount that you’ll make off that is better than nothing!! And if your employer matches contributions, take full advantage of that. Seriously – it’s FREE MONEY. And it has your name on it. Take it!
- Don’t carry a balance on your credit card. NEVER. You’re giving away money, and right now interest rates on those things are abysmal.
And that’s all. Thanks Michele for the awesome financial quiz!
