Stay Young and Flexible
Because when you are still young, moving will be much easier compared to when you are older or when you have to take into account your family or elderly family members. If you only limit yourself to jobs that are located nearby, you may miss out some of the best career opportunities. Always keep in mind that you are given the power to be flexible, especially when you are single. Even if at the end you cannot survive a high-paying job far away, there is always an option to return.
Saving More by Spending Less
Cut back on those daily cups of coffee lattes will hugely impact your long-term financial condition positively. That being said now may be the best time to list all of your unnecessary expensive habits and try to lose it one by one.
Study, study, study
This is practically true as people who spent their time longer in school by enrolling for a post graduate degree will most likely end up with a higher starting salary, and they are also most likely to be chosen for a higher position in the long run.
Own Your House
Paying off mortgage, although more expensive than rating, will increase your net worth by possibly hundreds of dollars per month, and this is way better than throwing all of your money out to pay rent. Over the next 10 years, the rent will be more expensive and by not owning the property where you live in, it will be harder for you to make payment for your rent.
Shop Smart for Your Car
Experts believe that the purchase price of your car should only be about 10% of your salary and not more. However, this will not help if 10% of your salary is spent on a used car that will require high maintenance. Therefore choose your vehicle wisely, or else if you do not need it that much it would be much more beneficial to put it into an investment.
Get Paid Realistically
Most fresh graduate who obtain a job offer never negotiates their starting salary because of several reasons. This is a major mistake, and it is very important to conduct a preliminary research to get a better picture of how much salary that you realistically deserve through discussions with your friends and colleagues. This can also be done by finding out and making comparison through a salary profile database website.
Get Dividends from Stocks
Stocks that pay dividends have proven to be outperforming other stocks with similarities. They are also less unstable in nature aside from the fact that they pay out real money. This makes it easier for them to be valuable during economic hardships. As years go by, the dividend payouts may be increased as well.
Buy Low, Sell High
Never ever buy stocks when the economy is good and the price is high. The perfect time to consider purchasing some stocks is the opposite, it is when Wall Street falls. Prepare yourself and keep a certain sum of money available for the next downturn, and while waiting you can opt for more flexible investments such as GICs which can be withdrawn at any given time.
Stocks Are Not For Emergencies
Do not make the mistake that common people tend to make: they purchase stocks when they have savings at the time when stocks are high. As their savings have all been spent to purchase stock, when there is an urgent need for extra cash they will sell their stocks at a very low point, causing them to make a very little amount of money in the stock market.
The Importance of an Insurance
Do not waste any more time to buy an insurance. Insurance for the young is extremely cheap, whereas delaying to get it once you’re older will make its price significantly more expensive. Do not wait out until there is a bad health diagnosis to buy one, because it will be difficult to get it for a good price.
Make Use of Matching Programs
It is a very often occurrence that a company gives out benefits package to its employees where it will match the employee’s contributions to things, for example a pension. In many cases, a low-interest loan may as well be offered to employees to maximize their contributions. Do your very best to max these benefits out, and you will double your money in no time.
Contribute To Your Tax-Deductible Accounts
Any dividends contained in an investment account, or capital gains from any stocks that go up will be free from tax until your retirement. However, when you retire, you can withdraw money from that retirement account and pay income tax on the money you obtain from those accounts. As these money will not be available until you are old enough to retire, small monthly automated deposits may be an option to consider.