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New York, NY (PRWEB) August 01, 2013
Upon the release of a NY.com article entitled Get with the Plan: Lets Start at the Very Beginning (Published July 21st) Money Mermaid discussed savings, budgeting, and financial planning and the importance of starting immediately. The article relates the advice given to a young college graduate about how to best begin paying off debt and saving for the future.
Karin Price Mueller, in her New Jersey article, offered advice to a young college graduate who was eager to begin a solid financial plan. First, she evaluated the womans financial assets and living situation, determining that the woman made over $ 60,000 per year, and had few expenses, given her decision to live with her parents. From there, Mueller offered advice that can be applied to any situation: first, she commended the woman for her decision to seek professional financial assistance in her approach to finances.
Following this praise however, was a caution: live within your means. Rather than spending the $ 3,800-odd she earned each month, she was urged to take half of that number to live on and save with, putting the entirety of the other half toward paying off student loan debt. In this way, she was able to save for the future, simultaneously lowering monthly payments and fees. This advice is attributed to the high interest rates common of student loans, asserting that, it doesnt make any sense to accumulate any significant savings while the loans are still outstanding. The article closes with an urging to take advantage of (401)k opportunities available with her employer, successfully saving money for the future, putting money toward her retirement, and paying down her debt.
Though Muellers example may not be relatable in her youth and ability to live with her parents, all is not lost; the principles applied to a recent college graduate may apply to everyone. Money Mermaid advises people to begin planning by taking an honest look at their finances. Is debt high? Is the cost of living unnecessarily high? By eliminating a few simple things, more money can be put toward debt elimination and savings. If eating out is a common practice, limit it to once every other weekor, better yet, not at all. If impulse shopping is a habit, construct a detailed list of every necessary purchase, and ask an accountability partner to ensure only the items on the list are purchased. If going to movies regularly takes its toll on the wallet, consider checking movies out from the library and having a theatre experience at home.
If debt is a large issue, begin paying a little bit more than what is due, increasing the amount each montheven if it is only by a few dollars. This will develop the habit of paying down debt rather than accruing it. This includes all forms of debt. Do not fall into the trap of thinking, Well, I took care of my credit cards and credit card debt; debt may also take the form of student loans, a car payment, or a house payment. If debt exists in any form, strive to eradicate it. Finally, do not neglect savings. Ten percent of ones income is a good place to start; for every twenty dollars earned, save two. For every hundred dollars earned, save ten. Though those with lower incomes may not feel they are contributing much, saving consistently will pay off as time goes by.
Karin Price Mueller is a writer for the Star Ledger. Her work deals with personal finances and consumer affairs, offering readers advice regarding their money and business. She composes for two ongoing columns: Get with the Plan and Ask the Biz Brain.
Following a recent article discussing a financial plan for a newly-graduated college student, Money Mermaid adapted the graduates plan to work for everyone, including tips on how to reduce living expenses, freeing up money to put toward debt eradication and saving for the future.
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