Financial Tips for ASU Graduates (Part 2)
No one expects to be hit by a car or to fall down the stairs but it happens to people everyday. When it does happen the consequences for most people are devastating. Most new Arizona State graduates are unprepared to deal with the impending catastrophe. The combination of mounting hospital bills with loss of personal income is an abrupt way to destroy your well conceived plan for the future. That is where health and disability insurance enter the equation; these provide a safety net to help you protect your financial future. Both can usually be purchased through your employer at a reasonable, often subsidized expense. If not available then begin obtaining quotes for individual policies from local insurance agents. Health care insurance pays for the majority of your very expensive hospital bill if you’re ever unlucky enough to be hit by a car. Without health care insurance your expenses will be bankrupt you. Disability insurance provides you a source of income to help with your apartment rent and living expenses while you’re out of work recovering from that accident. There usually is a variable waiting period before your benefits take effect. These insurances allow you sleep better knowing that an accident will not permanently derail your plan. Life insurance is not pertinent to this discussion unless you are married and have dependents.
Build an emergency cash fund. Life surprises people all of the time, don't be caught without your apartment rent. All the financial planners encourage this, yet people stubbornly fail to heed their advice. This is the money that you gradually put away for emergency use only. It neither gets tapped into for a frivolous purchase; nor is it for long term investing purposes. Be responsible and start. Try to avoid tapping into it unless it's an emergency. A excellent place to park the money would be in either a bank savings account or a money market account. Though the latter is not FDIC insured the minimal risk is outweighed by the superior monthly return.
If you’re faithfully addressing each of the principle items from your new financial plan you probably won’t have much money left to invest. Not to worry; successfully building an investment portfolio takes discipline, time and a calculated plan. Start small but be consistent. It’s not the amount you’re investing that’s essential but rather the development of regular investing habits. Your company’s 401K plan is an outstanding place to start. Have the money automatically withdrawn from each paycheck (so you don’t miss it) and invested into a low cost S&P Index Fund which provides you with instant diversification to the U.S. stock market. Reinvest all your capital gains and dividends and watch how quickly your tax-advantaged investment can grow. As an added bonus ask if your employer offers a matching contribution to your retirement account based on the amount you invested annually, by saving money on your apartment rent, you will have more money to save for your future..
Developing a financial plan for new Arizona State graduates requires responsibility to implement and comply with. People will make mistakes; however, by investing the time and energy into creating a comprehensive financial plan you will definitely make fewer mistakes (and less costly mistakes) than someone who has no plan. Bear in mind that the best mistakes to learn from are preferably somebody else's. Developing a financial plan for new Arizona State graduates is not difficult; it involves meticulous planning and discipline. Now is the time to start - your financial future is waiting. Start saving today, contact Boulder Creek Apartments and find out how affordable a beautiful Phoenix apartment can be.
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