In this interview with NBC12, Michael Joyce shares his financial advice for those just starting out in the workforce.
Tip #1: Contribute Immediately to a 401(k)
Michael reports that he told his older sons to contribute to their companies’ 401(k)s as soon as they began work. He suggests investing 10% of gross pay into a 401(k) plan immediately – so that you never miss that money.
Tip #2: Start an Emergency Fund
Another tip? Michael says it’s important to save 3-6 months of expenses in a low-earning savings account in the event of a financial emergency.
Tip #3: Pay Off Credit Cards Immediately
Lastly, Michael thinks we should all have a credit card (for emergencies), but he recommends paying it off every month.
For more financial advice for young professionals, check out Financial Planning Analyst Grant Wilburn’s recent blog post: Financial Management for Young Adults.