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How can I start financially saving and managing money in a way that will benefit me ? #Spring23
As a young individual slowly making my way into the adult world what are steps I can take that will help me?
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4 answers
Cori Coburn-Shiflett
Manager of Educational Technology Support Services / STEM educator
29
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Cori’s Answer
If I could talk to my younger self, I would advise learning about CD (Certificates of Deposits). These are a better option than a regular savings account that will yield a higher return on the interest. Starting young will work in your favor and you can slowly watch it grow over time.
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Micheal White, MBA
Reimbursement and Quality Metrics Management
19
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Micheal’s Answer
Hello Analisa, it is good that you are thinking about that early. Jerome has a great point. I would also look at putting your savings in an account that is accessible but not as easy to get to as others. For example, Betterment has a higher yield savings that has a few days lag time if you need it. That's just one example and I say that because a lot of people young and old may be easily swayed to dip into savings for something they often have buyers regret over. It's an in the moment thing so if you have to wait a couple of days for your money to transfer that want sometimes fades. Good luck.
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David E.’s Answer
Opening an IRA and making the largest contribution towards the maximum annually is a great way to build long-term wealth. This is an investment in your future, for when you feel that you can retire or are at the age where you can retire. Given that you are probably quite young you should examine all of your options for your IRA, you might want to weigh the benefits of a ROTH IRA vs a Traditional IRA to compare the tax benefits upon withdrawing the money in the future. Now, mind you, the advice I am giving is for LONG-TERM investing and building wealth over a lifetime, not short-term or quick money-making. If you have access to a Time Value of Money (https://www.fncalculator.com/financialcalculator?type=tvmCalculator) you can conduct your own analysis of what a deposit made today might yield in 25 or 30 years. Good luck!!
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Jerome’s Answer
Setting a budget and sticking to it can be beneficial. Most people I work with wish they would have started saving earlier. Take a percent of what you make and have it go into a savings account. Start with a goal of having a few months worth the bills put up and grow from there.
Thank you so much!
Analisa