3 Things Every 20-Something Should Be Doing With Their Money

(1.9 minute read)

While in college, you’re pretty safe; money is tight, but it’s not that complicated to monitor. That’s why you should get a head start on your post-graduation life before it’s utterly overwhelming, and start doing these three things now.

Building credit:

After graduation, you will be in a position to rent an apartment, buy a car, and commit to several other big buys. However, many of these purchases require you to send in your credit history… which is problematic if you either don’t have a credit history, or have a poor credit score. Sign up for a credit card, and make sure of three things a) you’re not paying for the card itself b) it has rewards c) you pay the full bill, on time, every single month.

Saving for retirement:

Maybe this seems crazy to think about now, but the trick to spending as little of your own money on retirement as possible while also making sure you don’t have to spend the rest of your existence working a 9-5, is to start investing very early on. Do a little research on IRA accounts, how/whether/when savings are taxed, and what the rules are for withdrawing from the accounts. Every month contribute a little more, no matter how small that amount is.

Earning interest:

I highly recommend online banking, especially for college students who are out of state. No matter where you are, you have full access to your money, and a lot more freedom to choose a bank that will pay decent interest.

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