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Life after College: Become a Financially Savvy 20-Something...Continued from page 2
Steve Diggs
No Debt, No Sweat Financial Seminar Ministry
Now I know that what I’m about to suggest here is controversial, but I believe it is important to build your credit history carefully and systematically. You might consider getting a credit card for the purpose of building a credit history that will one day help you get a lower interest rate on your mortgage loan.
No, I am not telling you to go out and run up debt!!! If you misunderstand what I’m suggesting here, it can do far more damage than good. But to blame credit cards for our spending problems is a little bit like going into a Burger King, and coming out looking like a Whoper—and, then, blaming Burger King for the problem! The problem is with the person who doesn’t control his own appetite (or, in this case, spending.)
If you do get a credit card, remember the basics. Only get one card. Request and maintain a low maximum spending level (maybe $1,000.) Never spend more than 40-50 percent of that amount in any given month. Always pay the full balance every month — NO EXCEPTIONS! Think before you spend. Studies show that people using credit cards spend more — 12-18 percent more on average. Learn to avoid the urge to splurge.
Do a written budget (in No Debt No Sweat! I call budgets “Personal Financial Freedom Plans.”) Give every dollar a direction — and never deviate.
Begin saving early. Try to set at least 10-15 percent of your income away for long-term retirement planning. If your boss offers a matching 401(k) or 403(b), consider it carefully. If not, look into an Individual Retirement Account (IRA). You can learn more about IRA’s at my website, or at most mutual fund company websites.
By the time you get to retirement, I’ll probably be toe-tagged and horizontal. But that’s okay. Tap me on the shoulder in heaven and let me know how it went.
Steve Diggs presents the No Debt No Sweat! Christian Money Management Seminar at churches and other venues nationwide. Visit Steve on the Web at www.stevediggs.com or call 615-834-3063. The author of several books, today Steve serves as a minister for the Antioch Church of Christ in Nashville. For 25 years he was President of the Franklin Group, Inc. Steve and Bonnie have four children whom they have home schooled. The family lives in Brentwood, Tennessee.
• What you can do today to get out of debt and kill the Debt Monster
• A,B,C's of handling your money God's way
• How to save, invest, and retire wisely
• How mutual funds work
• How to stop fighting over money
• What to teach your kids about money
• Learn how home & car buying, college financing and insurance work.
• How to develop a budget that works -- forever!
• Features simple charts, graphs, and easy-to-use forms.
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