Young Adults: Fundamentals

• Fundamentals of Borrowing - The sensible use of debt should be part of a sound financial strategy. Debt can enable you to enjoy things that otherwise are currently beyond your reach. Borrowing can also have its ugly side. Too much, too expensive or the wrong kinds of debt can make life miserable. Developing good borrowing habits early can help you avoid a lot of anguish later.
• Build a Solid Credit History - A solid credit history can be one of your most useful and powerful financial assets. A record of prudent credit use and prompt payments can enable you to not only qualify for credit when you need it, but it may also enable you to get a lower interest rate on your borrowing.
• Have a Financial Strategy - A financial strategy is simply a plan on how you are going to handle your finances. It does not have to be overly complicated, but it should cover the basics, help you avoid major financial mistakes and put you on your way to a secure financial future.
• Have an Organized Financial System - There can be a lot of paperwork handling your finances. Each month you will have bills to pay, every year you will file a tax return, you will have receipts for purchases and you will have important documents that deserve special attention. Having an organized system instead of just putting everything into a drawer or box can save time and reduce the stress of not being able to find something when you need it.
• Establishing Good Financial Habits - We all tend to develop habits that provide a rhythm or structure to our daily lives. Once those habits are developed, they can be hard to break. Building good financial habits can provide a rhythm, or sense of control, for your financial life as well. This article contains ten good financial habits that can help you build a sound financial foundation and help you reach all your financial goals.
• Fundamentals of Income Taxes - Our federal income tax system was implemented in 1913 simply as a way for the government to collect revenue. Since then, the laws have been expanded and revised dozens, if not hundreds of times. If history is any guide, you can expect the tax laws to continue to change and probably not get any simpler.
• Fundamentals of Insurance - Insurance provides protection. As simple as that sounds, many individuals spend little time considering all their insurance options to make sure they have the insurance they need at the most reasonable price. To protect yourself and your belongings you should consider several types of insurance.
• Fundamentals of Investing - Investing is simply the process of acquiring assets that you hope will grow in value. Investments can include owning a home, owning a business, owning real estate and having money in savings accounts and CDs at a bank or credit union. This article addresses investing in stocks and bonds and various ways to own them.
• Measure Your Financial Progress - Taking control of your financial future is a process. As with any process, it is important to monitor your progress and measure results. Doing so will help you understand how well you are doing and to determine if the financial strategies you are using are working.
• Fundamentals of Retirement Planning - Most people identify a financially secure retirement as one of their primary financial goals. As you begin your financial life, retirement may seem to be far over the horizon and not worth thinking about. However, by spending a little bit of time now and doing some relatively easy things, you can put yourself on the road to a financially secure retirement.