In Your 20's

This is what’s known as a compound interest. And it’s one of the reasons you should start saving now, when you have decades ahead of you for that money to grow. To free up some cash for your initial investments, here are a few simple things you can start doing today:

• Be real: First things first. Be realistic about what you actually need and what you just “sort of want.”
  
• Embark on a tall order so you don’t come up short: Take the time to sit down and identify your goals: short, medium and long. Define them in clear absolutes: saving up for furniture, a car, or a honeymoon (short term); saving for a house or apartment (medium term); planning for kids, their education, your retirement (long term).
• Give yourself some credit: In order to qualify for the best interest rates on a credit card, car loan or mortgage, you’ll need to build a solid credit history. So pick a single card and stay on top of the payments.
• Cut the cord: If a parent or role model is helping you manage your finances, it’s time to take the reins and put yourself in charge. After all, whoever controls your finances controls your life—and your future.
• Think before you marry: Remember, your spouse will be your co-money manager, so financial values and views on spending and saving are something you should discuss before you consider a ring.
• Put your health first: Make sure you have continuous (i.e., no breaks in coverage) health insurance. Don’t let an unexpected health issue and the resulting medical bills diminish your savings