Top Investment Advice for the Newest Graduates

The class of 2016 has now entered the workforce and has become “adults.” They may be thinking of the upcoming student loans they will now have to start paying back, and they may even be dreaming about retirement, although it is a long way off. One thing they may not be thinking of is investments. Here are just a few words of advice to the newest members of the working force.

Debt

Whether you have student debt or the all too familiar credit card debt, it is wise to start tackling your debt headfirst before you start investing. Being late, or worse, missing, one payment will hurt you as this will affect your credit score and raise interest rates.

Emergency funds

While you don’t want to think of the possibility of losing your job, or some type of emergency happening in your life, these are something you should prepare for. Creating an emergency fund will help you on those “rainy days.” Your emergency fund should have at least three months’ worth of living expenses.

Retirement

Yes, you just started in the real world, but that shouldn’t stop you from investing in your future. Even if you are currently living paycheck to paycheck, this doesn’t mean you can’t put away as little as 1% of your paycheck for the future. Here, Mark Matson DFA talks about the top mistakes investors make when planning their retirement, including how it’s never too late to start saving.