- More than 70 percent of college graduates have outstanding student loans—with an average balance of $37,000—when they graduate.
- Studies show millennials are far more concerned about paying off student debt and increasing their savings than they are about their retirement.
- The sooner you can pay off student debt, the sooner you can start your adult financial life and wealth-accumulation years.
- Check your credit score annually to make sure there are no errors in your financial history. Free credit reports can be obtained at AnnualCreditReport.com.
- The Fair Credit Billing Act requires the three main credit rating agencies—Experian, TransUnion and Equifax—to correct errors and disputes pertaining to your financial history.
- To bolster your credit rating, make payments on time, manage your cash flow wisely, correct errors in your credit history and don’t utilize more than 30 percent of your available credit.
- Save first, spend second.
- You can’t start a good saving plan (or habit) until you’ve established a budget.
- Increase your income, reduce your expenses and control your emotions—wait 48 hours before pulling the trigger on a major purchase and don’t fall into the FOMO trap.
- Make sure you always have three to six months’ worth of expenses saved in a rainy day fund that you can easily tap.
- There are three aspects of a rainy day fund: objective, subjective and emotional.
- A rainy day fund will enable you to weather the financial and emotional impact of a sudden job loss, medical emergency or unexpected major repair.