Already a member?
Welcome to Brazen Careerist!
Emily Ma is using Brazen Careerist to share ideas. Join now to become a member and start networking with Emily Ma and other professionals just like you. Learn more.
Brazen careerist
Where ambitious young professionals connect and grow
Email
Print
As I sit down to write this week’s blog post, I am reminded of a somewhat famous quote by Oscar Wilde,
“When I was young I used to think that money was the most important thing in life. Now that I am old, I know it is.”
If you are like most young professionals, it’s probably hard for you to imagine just how far into the future retirement really is.
But I want you to look at this from another perspective… look backwards. How many things in your life have happened since you were born? If you were like me, you might have gotten picked on in grade school, won 2 spelling bees, won a state chess title, graduated from middle school, got kicked out of music class (along with several others), damaged an elevator at the Marriott, graduated from High School, been to Mexico twice, and partied like a rockstar (or a drunken madman, switching bathroom stalls frantically).
I can’t tell you how many times I hear people say, “Wow, where did all the time go?” I can’t believe its November already? Didn’t we just have Thanksgiving?”
People, time flies. That’s a fact. If you are just sitting idly on your rear behind living paycheck to paycheck, its time to cut back on excess spending and time to save. Statistics say that the American savings rate dropped into negative territory in this decade and has been there for quite some time.
3 Places to Start
So where should you start? Well I have listed a couple of different options here, noted by my preferences:
1. Traditional Bank Savings Account – low interest payout, safe, liquid. Everyone must own one, but I consider this an average way to start at best because its just way too tempting to access and you know how you are with money!
2. Bank CD – a little better interest payout, safe, not so liquid, requires a large lump sum – I consider this an above average way to go, because it forces you to leave the money alone. However CD’s feature a number of problems which I will talk about later.
3. Managed Brokerage Account – Ok. Now we are talking. Most young professionals don’t realize this, but relatively safe options reside in the bond market and your access to this world is best opened by a professional. Doing this, will drastically increase your rate of return if you maintain your patience. Funds in the account are still liquid and accessible, but there are major incentives to stay the course. Of course you might need a larger lump sum to get started but when you do this account will protect you from your number one enemy – yourself!
For more timely, relevant, and engaging articles,
subscribe to Brazen Careerist.
- A New Kind of Business Mover and Shaker
- Why You Might Be Better Off Without a Job After College
- The Anti-Stalker’s Guide for Converting Online Contact into Real World Collaboration
- How To Find a Writing Partner Who Can Help You Achieve Your Goals and Make More Money
- Continuing Education: Extending Learning Beyond Your Campus Years
Comments
11.10.09
Good thoughts for a beginner. I'd like to add a fourth idea though: with the stock market just beginning to rebound (I hope!), now is a great time for someone starting out to pop some money in a no load index fund. Index funds are good because they are tied to some index like the S&P 500, and managed automatically. These are less expensive to own (fewer fees and whatnot) than many traditional types of mutual funds, and often have nice long term returns.
11.10.09
I recently opened a high-interest tax-free savings account and added the "smart save" function to my chequing account: whenever I use debit to pay for something (which is almost always -- I hate carrying cash around), an additional $1 is deducted from my chequing account and deposited into the savings account, which has a pretty high interest rate.
I've been banking anywhere from $40-$90 per month, depending on my spending habits. Not a ton of money, but it's something!
11.10.09
I definitely think saving is important. One thing I think is lacking in the workplace is a straight forward explanation of the retirement plan system and the pros and cons for the particular employee.
This is something that is missing where I work for sure!
Great topic!
11.11.09
While money really is not the most important thing in the world, it sure does help to have it. These are some very good instructions to both younger people and older people as well who have not started saving yet. Casino en ligne
Got Something To Say?
Got Something To Say?
Not a Member? Brazen Careerist is a career management tool for next-generation professionals. Set up a free account today to comment on this post and start sharing your ideas. Learn more.
Login to view your networks!
 |
 |
 |
 |
|
