I’m 24 years old and live in Tuscaloosa, Alabama I graduated college a few years ago and have a good paying job. I have not worried about investing until now. Can you let me know what some of the basic things I should know are?
Jenny from Tuscaloosa, Alabama
First, it’s great that you’re starting to ask these questions now and get your foot in the door when it comes to investing. Below are some basic things to think about to get started.
- Take advantage of any employer matching programs – This means that some companies will match up to X% which provides a quick return on your investment. For example they may indicated a match up to 6% so any money invested up to 6% of your annual salary is matched at 100% (or another %) by the employer. This would be a 100% return on your basic investment guaranteed.
- Become debt free – Before things about jumping into investing it’s good to make sure you have a strong foundational budget and an emergency fund. Additionally you should consider paying down high interest debt (credit cards, store cards, personal loans, etc) and then begin investing.
- Start small and increase when you get raises – Investing at first can be a daunting task but if you start small ($50 or $100) a month an increase it every time you get a raise will prove successful in the long run.
If anyone has any additional questions please email us at BYOAdviser@gmail.com