6 Steps to Financial Security

1) High yield saving account

A high yield savings account is a savings account that gives you more interest for holding your money. Think $100 of interest a month versus 5 cents. You’re losing money if you don’t have this. You can get a free account with no fees. It’s really a win win.

Here's a link to some of our favorite high yield savings accounts.

2) Track and be mindful of spending

If you’re not tracking your spending then you are definitely not in control of it. There’s many ways to do this. I love the Rocket Money app. But find what works for you!

3) Good credit score/Credit card

A good credit score comes from paying bills on time. When you’re 18 the best way to do that is to have a credit card. Set your bill on autopay and watch your spending.

Here's a link to some of our favorite starter credit cards.

4) Emergency fund

The amount to save for an emergency fund is 3-6 months of expenses. Keep it in a high yields savings account. It’s there if you ever need it and gives you the security and flexibility of not being tied to a job.

5) Roth IRA/401 k

These are retirement accounts. They’re better than just saving money because they have tax advantages and they can be invested. Invest it safely and watch your money grow until you need it.

6) Other investments

This is the final step of finances. Once you have no debt, are investing for retirement and have an emergency fund you can invest extra money into other things. This can be houses, startups or anything that comes up. Do what you feel comfortable with and remember, if it sounds too good to be true it is too good to be true

You can get to step three the day you turn 18. Step 4,5 and 6 can take longer but they’re goals that are worth it! Being set up well will make your life easier and less stressful.