Managing your money – a phrase that causes dread even in the most seasoned, hardworking adults. How to save for retirement while paying for a house, food, and still making those occasional fun purchases like clothing and vacations? It’s just too overwhelming! Luckily, that’s why there are people like Jean Chatzky – branded America’s favorite money coach by Oprah, she is spreading her knowledge and intuition on how to save and spend smartly. Merci, dieu.
Jean held a two-hour financial workshop today for the interns and others in the office looking for money tips (isn’t everyone?). For college girls, this was the bible on how to handle our money in the future – thank god someone could give us good advice before we did anything stupid! The major message? 10% into savings, always 10% into savings. No excuses!!
Jean’s 4 lessons for financial success:
Make a decent living and be comfortable
- To make your money, do you something you enjoy and are passionate about (job: something for the money, career: something for the money and the opportunity to advance, calling: something you just have to do – but make sure to get some extra money on the side somehow!)
- For young people – the ballpark of a decent living is about $60,000 in 5 years about of school
Spend less than you make
- Save 10% of whatever money you have and don’t touch it!! Savings are the antidote to credit card debt
- Make saving easier by knowing what you’re saving up for, have a picture – when you see it, you can hold onto the image in your head and avoid unnecessary spending
- Save smaller, not larger, amounts so that it’s easier to achieve
Invest what you’re not spending
- You need a sizable emergency fund – for young people, start with $500; once that’s saved up it’s easier to save more
- Join a retirement plan the minute you get a job that provides one
- Never take money out of a 401K, only transfer it!
- Save more than 10% some years because there will be others when you can’t save as much
- Get insurance! Especially health insurance – go to ehealthinsurance.com for individual health insurance.
Most of all, be optimistic and resilient! Go to Jean Chatzky’s website here for more advice, also see her on Oprah and The Today Show!