Starting Out: Begin Funding for Your Financial Security
If youve just landed your first real job, your salary is probably limited, and you may have difficulties covering current expenses while paying off loans -- let alone saving for the future.
The first step you may wish to take is to prioritize your financial goals. Along these lines, insurance coverage is important, especially health insurance. If you have dependents, life insurance is the next logical step, and disability insurance should also be a consideration. It is also wise to build a cash reserve -- preferably a minimum of three months living expenses -- to fall back on if you become disabled or lose your job.
Now is also a good time to begin pursuing long-term financial goals. An automatic savings plan or, if available, an employer-sponsored retirement program, such as a 401(k) plan, will allow you to contribute small amounts from your paycheck and gradually build a retirement nest egg. And while retirement may seem a long way off, the rewards of starting to save early are huge and can give you a big leg up later when you need it.