This discusses how its important to start thinking sbout your personal finance now. For example, to start thinking about your retirement now, so you can start to save accordingly. It lists the things you need to think about :
Compounding
401k vs IRA
Traditional vs Roth
The importance of starting early to save for retirement
General Savings
Investing
My Personal Finance
- Start saving early for retirement. The earlier you start, the less amount (percentage wise) of your salary you have to save each year in order to live comfortably during retirement.
- Contribute to your company’s 401k if they match, else open up an IRA. Always max these accounts out every year to the cap. Did I mention start early? Like right now?
- Aim for 10-15% of your income going to retirement.
- Only put 3-6 months worth of living expenses in your bank’s savings account, the interest rate is usually abysmal and probably does not even beat inflation. Use it as an emergency fund for when you need money ASAP.
- For the rest of your money, put them in bonds and mutual funds. Follow the bonds/mutual funds allocation formula in the “Investing” section above.
- Retire like a boss.
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