As a young adult, you'll face many big decisions - first car, first home, first job. Weighing options, making good choices and setting specific financial goals can help you get off on the right foot. Here are some helpful things to ensure your hard earned money works as hard as you do.
When you get a new job, make sure you know when and how you become eligible for your benefits.
Start contributing enough to your 401(k) or 403(b) to get the maximum company match. This is free money - don't turn it away!
After you max out your company match, make investments outside your 401(k).
Don't pinch pennies on car insurance. We recommend getting 100/300/50 coverage - this equates to $100,000 in bodily injury liability coverage for each person, $300,000 limit per accident and $50,000 in property damage coverage.
You can save 15% - 30% on your car insurance by choosing a higher deductible.
Before buying a home, save 20% of the home value for a down payment.
Expect closing cost fees when buying a home. The national average for closing costs on a $200,000 home is $3,000.
Budget for the extra costs of owning a home - trash collection, snow removal, repairs, etc.
Before getting married, make time to have an important talk about your financial future and agree on common financial goals and strategies.
If you don't have health insurance, you'll likely be eligible to be covered under your spouse's plan. If you both have insurance, its more cost-effective to be covered under one plan. This will save you money that can be invested in a 401(k) or IRA.
Make sure you and your spouse are contributing the maximum company match to your 401(k)s.