1. Set your goals. Early on, you need to know where you want to be. Set specific but reasonable goals. “To save $3,000 by the end of the year” is a better goal statement than just saying :I’m going to save for the future.” Specific goals also apply to your spending. Say, “I will pay off half of my credit in six months” or “I will minimize my eating out by 20% this month.”
2. Be wise in using your debt facility. Choose the credit with the lowest interest. Use your credit only for “appreciating assets” like business expansion or home mortgage. Avoid using your credit for consumables because these types of spending almost always do not provide returns.
3. Time is your most potent investment weapon. Its power is entirely at your disposal. Make your employer’s 401(k) offer as your top priority. The IRA, on the other hand, is good for extra savings if you have already maxed out your employer’s match. With the IRA, your investment options become wider. If you start contributing to your IRA or 401(k) at the age of 25 for only $322 per month, you will have $1 million in retirement funds when you retire at 65 years old.