Building a Financial Future: Where Do You Start?
If you’re new to investing, it can be challenging to know where and when to get started. There’s so much information and advice out there that it can be hard to know which makes sense for you.
The good news is that getting familiar with a few fundamental principles can help you see past the information overload and set you on the path toward a healthier financial future.
Let’s jump-start your efforts! In my first blog of this two-part series, I’ll tackle three basic and important concepts for beginning investors to know about:
- Getting started on the right foot by avoiding debt
- Embracing the power of long-term investing
- Making the most of tax-advantaged accounts
Avoid the Vicious Cycle of Credit Card Debt
The debt you carry directly impacts every facet of your financial life. Put plainly, every dollar you put toward paying down a credit card bill or car loan is one less dollar that can grow to benefit your future. That’s why minimizing bad debt is the first step toward building a strong financial future.
Note that I said, “bad debt.” Not all debts are bad. Low-interest student loans, for instance, can help you receive the education you need to follow a rewarding career path and earn income. And reasonable mortgages can help you buy a home and build equity. On the other hand, high-interest credit card debt can quickly become very expensive—and severely hamper your ability to make financial moves such as saving and investing.