Coming to the post title ideally I thought of naming it clock tick starts when you join your first employer. However, I felt that the moment you start making your first dollar, be it side-hustle income, part-time job during your early school days, full-time job, freelance roles etc the real clock tick starts there. When it comes to money it determines your level of discipline. It takes lot of discipline to make money, save money, grow money.
All of us aspire to achieve big, retire fast. We work real hard making good income. However, few years down the line we realize that we did not do something right that would have allowed me to retire fast. Today's post is full of practical workable very easy tips that anyone can follow when you make your first dollar
1) Open a bank Account - I'd recommend to look for the following criteria while opening a new bank account:
1.1) FDIC Insurance - You must be rest assured that you are maintaining your hard earned fund in safe hands. FDIC insurance offers protection to your money. Look for a bank that is FDIC insured
1.2) Checkout Rewards - Now-a-days most of the banks offer rewards for opening checking, savings account, maintaining specified balances for a specified period of time. If you don't make sufficient to meet the reward criteria, work with your parents , well wishers. Extend an offer to pay them portion of reward if they choose to help so. This always turns out to be win-win situation
1.3) Credit Score - Your credit rating does start early that will allow you to borrow home loan, auto loan, personal loan easily in next few years. Building your credit score so early is made possible by having bank account, payments in good standing, proper usage of credit card, maintaining reasonable credit balances, proper credit to spend ratio, proper payment of card balances etc. Lets discuss this in real detail
1.4) Ask for credit card - Most bank accounts come with debit card by default. Now-a-days banks offer credit cards to their customers. Ask if you are eligible for a credit card as soon as you open the bank account. Apply for one and have handy as soon as you open bank account
2) Open brokerage account - This is second level. It depends on the amount of money that you have already saved in bank from step 1. Open a stock brokerage account. Investments in stock and mutual funds help you grow your money early on
3) Home Purchase - Say you had made a real good savings of around $5000, do you know that you can easily purchase $100000 worth of property. You can avail FHA home loan, put 3.5% down and purchase your first home. If you are too young to make your first home purchase, take help of your parents and purchase your home. Always calculate rent that you can make out of your home. Make sure you make atleast $100 more in rent after paying mortgage, mortgage insurance, property taxes, HOA in case of condo, all fees. Cash flowing properties are real cash cows in long-term
4) Credit Cards - If you are eligible to apply for a credit card do so without any delay. Your credit score starts building as soon as you make your first purchase
All of us aspire to achieve big, retire fast. We work real hard making good income. However, few years down the line we realize that we did not do something right that would have allowed me to retire fast. Today's post is full of practical workable very easy tips that anyone can follow when you make your first dollar
1) Open a bank Account - I'd recommend to look for the following criteria while opening a new bank account:
1.1) FDIC Insurance - You must be rest assured that you are maintaining your hard earned fund in safe hands. FDIC insurance offers protection to your money. Look for a bank that is FDIC insured
1.2) Checkout Rewards - Now-a-days most of the banks offer rewards for opening checking, savings account, maintaining specified balances for a specified period of time. If you don't make sufficient to meet the reward criteria, work with your parents , well wishers. Extend an offer to pay them portion of reward if they choose to help so. This always turns out to be win-win situation
1.3) Credit Score - Your credit rating does start early that will allow you to borrow home loan, auto loan, personal loan easily in next few years. Building your credit score so early is made possible by having bank account, payments in good standing, proper usage of credit card, maintaining reasonable credit balances, proper credit to spend ratio, proper payment of card balances etc. Lets discuss this in real detail
1.4) Ask for credit card - Most bank accounts come with debit card by default. Now-a-days banks offer credit cards to their customers. Ask if you are eligible for a credit card as soon as you open the bank account. Apply for one and have handy as soon as you open bank account
2) Open brokerage account - This is second level. It depends on the amount of money that you have already saved in bank from step 1. Open a stock brokerage account. Investments in stock and mutual funds help you grow your money early on
3) Home Purchase - Say you had made a real good savings of around $5000, do you know that you can easily purchase $100000 worth of property. You can avail FHA home loan, put 3.5% down and purchase your first home. If you are too young to make your first home purchase, take help of your parents and purchase your home. Always calculate rent that you can make out of your home. Make sure you make atleast $100 more in rent after paying mortgage, mortgage insurance, property taxes, HOA in case of condo, all fees. Cash flowing properties are real cash cows in long-term
4) Credit Cards - If you are eligible to apply for a credit card do so without any delay. Your credit score starts building as soon as you make your first purchase
