Young adults: Become financially responsible [investmentscalculator]

Young adults: Become financially responsible [investmentscalculator]

If you have a longer time horizon, here are your money making opportunities, says Jim Cramer.

http://theeaglesreport.com Cramer: Strategy for Young Adults

"I think it is absolutely the investment vehicle for young adults," says Barbara Taylor, a financial adviser with ING Financial Partners. With a Roth, contributions are made after-tax, but withdrawalsâ€"including earningsâ€"are tax-free if you follow ... Young Investors, Start With a Roth

When you were a student, you did not have to bother much about your finances. Your parents were mainly responsible for managing your finances. You were more engaged in your studies as well as in fun-making with your friends. However, when you just get a job and enter into the real world, the juvenile exuberance still remains. You still remain immature and inexperienced to manage your finances. Anyways, that should not be the right approach. You need to adjust yourself with the changed circumstances. You have to put in a conscious effort to manage your money in a better way. You have to understand that there is no abstract science involved in money management. You need not have to be an expert in Mathematics. With little effort, little reading and of course with discipline, you can definitely manage your finances. Here are some financial tips on how you a young adult can manage your money.

 
 
Imbibe self control  
Imbibing self control is the stepping stone to better manage your finances. You need to acquire the art of delaying your gratification. In other words, this is to say that do not purchase any item without measuring its consequences on your finances. First make sure that buying that item will not put strain on your finances. Then only you can go for the purchase. If you have the habit of using your credit card to purchase items, use it wisely. But do not carry too many credit cards that you can not keep track of.  
 
Build up an emergency fund
 
This is indeed a very vital aspect that you need to focus on. The emergency fund can indeed save you in case of any unintended contingency. Make it a habit to set aside some money every month for the emergency fund. Treat the regular monthly amount that you put into the fund as a non-negotiable monthly expense. Having a healthy emergency fund will provide you the much needed solace and you will sleep well at night.  
 
Plan a realistic budget
 
Since you have become an adult and entered the real world, it is expected that you will manage your finances yourself. As a stepping stone, you can read some basic books of personal finances. This will provide you a fair idea about personal finance and the virtue of savings. You should put in serious efforts so that your expenses do not exceed your income. And to do that in a better way, you need to plan a budget. What you are required to do is to list all the items of expenses and then allocate money to each of those items. Make sure that the total expenses do not exceed your income.  
 
Save for retirement now

Start saving for the retirement from now. Because the sooner you start saving for retirement, the lesser principal amount you need to invest to build up that retirement amount that you are desiring at. Employer-sponsored retirement plans are very useful for this purpose. Otherwise you can also opt for retirement plans which are available at the market place.
 
If you can follow the above mentioned financial tips, you will be able to secure a better future for you as well as for your family.

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Question by purplepolo06: financial investments for young adults? What are good financial investments for 18-22 year old college students? (e.g. Stocks, life insurance, CDs) and why? Best answer for financial investments for young adults?:

Answer by Dimples_in_NJ
Insurance should make up at least 30% of your portfolio between the ages of 18-22 as you have not had enough time to gather assets such as stocks and bonds. Personally, I consider insurance the backbone of your financial health as this is the best time to secure a policy at a low cost. Suggestion: Purchase yourself a book by the name of "Automatic Millionaire". This in my opinion is a good glidepath for any young individual seeking good long term financial health. It is an easy read. It will speak of: 1. Insurance- Protection of assets. 2. Stocks- Automatic investments, direct deposit. 3. Employer benefits- How to use them. 4. Taxation- How to hedge away from them. 5. Home purchase 6. Credit - Important for any younger person. 7. Emergency fund- so you are not cripled by the unpredictable.

Answer by LifeInsuranceAgent
Life insurance is not an investment and shouldn't be looked at as if it is.

Answer by aaron p
We don't know enough information about your situation to give any advice. Anybody who gives advice to you based on the information we have is making generalizations. You should meet with a fee-only financial planner. They will often cut their fees for college students hoping that once you get a good job, you'll be a regular customer.

Answer by Amers
Stocks are more for when you are already financially independent and CD's are safer if you are trying to buy a house etc. Talk to a personal banker at your bank about your situation. There are no fees for opening a CD but investing in bonds or stocks there is because the investment banker manages the money and puts it in places where the biggest returns are. I hope this helps!!

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