Build an emergency stash – Start saving an emergency fund so you don’t rely on credit cards, which could only bury you in debt. It is ideal to have an emergency stash of three months of living expenses, but the important goal is to save something.
Avoid debt for miscellaneous personal items - Save your borrowing power for important necessities such as a car or home. If you are struggling to stretch your paycheck to set money aside for retirement, this is the time to give your budget a major overhaul. Paying your bills should be your number one priority before anything else, allowing you the ability to maintain a good credit rating.
Get educated – Financial know-how is not genetically encoded and, unless someone has taken the time to teach you about finance, you’ll need to do a self-study. There are many investment options to research depending on your risk level tolerance: savings accounts and time certificates are safe options, while mutual funds, stocks, bonds, and cryptocurrency are options that hold more risk. Make sure to invest your money with someone you trust and know what you are investing in.
Diversify your investments – You can hedge against risk of loss by diversifying your investments. Don’t put all your eggs in one basket, which could be catastrophic if you lost it all. We suggest investing a little in several products – stocks, bonds, mutual funds, and time certificates. If choosing higher risk options, make sure you’re investing money you can afford to lose. It’s important to have a good understanding of the potential future growth and risk of your investments.