You're just starting out in your career. You have time to build wealth. Most important, start early.
Sure, you're out of school and on your own. Maybe you're even making pretty good money. It's tempting to spend it when you're young and free. But others have bravely gone before us, and their wisdom whispers a little secret in our ears, "Save as much as you can...now."
It's hard to know an exact number, especially early in your career. But you should save as much as you can and remember that KPERS and Social Security won't be enough when it's time to retire.
The difference in starting your saving early vs waiting later in life is dramatic. Don't just take our word for it, check online and other retirement resources.
There are many different ways to save, to figure out what is the best method for you consider speaking to a financial advisor. A financial advisor will be able to guide and educate you on your options for saving money. KPERS 457 | Other employer plans | IRA
If you establish and keep good credit now, you can save big money by qualifying for low loan rates down the road.
A budget is simply putting money earned and money spent into categories. After that, you can easily track and plan your spending. A budget isn’t scary. It makes managing money easier.
Get started by writing down the money coming in and money going out. All of it. Even the small things. Then put them into categories, like “Dining Out.” You’ll start to see how much you spend in each category and where you can cut back. If you haven’t already, give budgeting a 3-month try. See how much you save!
People tend to spend more with credit or debit cards than with cash. Cards are more convenient, and you don’t often see immediate effects.
Try a cash budget for things like groceries, dining out, golf, etc. Just label envelopes with your categories. Each week, put a budgeted amount of cash in each envelope. When the cash is gone, you’re done spending until next week.
Although pencil and paper are ok, there are other tools out there to help. Some choose to use a spreadsheet program, like Microsoft® Excel® to set up and track their spending. It even has budget templates ready to go.
Or you might want a personal finance and budgeting app to put in your toolbox. They often have more features than a spreadsheet, like connecting to your bank accounts.
Investopedia gives a review of top finance and budgeting apps for different needs. Visit the page and figure out which one works best for your situation. Best Budgeting Apps