A personal finance blog dedicated discussing such topics as budgeting, asset allocation, 401K, IRA, cash flow, insurance, financial planning, portfolio management, and other areas in personal finance.


Thursday, May 19, 2005

Great Advice for College Graduates

I found this article by Eileen Ambrose on the Chicago Tribune website. College graduates who understand the rules of personal finance are way ahead in the game of life. If you are the parent, relative, or friend of a college graduate, make sure you have them read this article.

It isn't hard to start out life on a sound financial footing but it does take effort. Tempations to spend money for the newly employed college graduate will be strong. However, with some prudent planning, those temptations will subside. Just make sure you do the following things BEFORE making any large purchases:

1. Set up a budget and stick to it.

2. Enroll in your company's 401(K) plan or open a Roth IRA. Make this a PRIORITY!

3. Set 3-6 months worth of living expenses away in an emergency fund. Don't spend this money unless it is necessary.

If you live within your means, life will be much, much more pleasant.

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