Before you rush to invest in stocks or bonds, build a firm foundation.
Budgeting should be a priority. Track your income and outlays for a few months to see if you’re living within your income. If not, see what expenses you can eliminate or reduce.
Build up a cash reserve. You should have at least three months’ worth of expenses in the bank or in a money market fund, in case of an emergency.
Pay down any credit card debt and pay all such bills promptly. Otherwise, you’ll pay high, non-deductible interest on any balances.
Once you have this type of a foundation in place, you can think about investing for retirement, starting college funds, and, if appropriate, saving up to buy a house.
If you want outside assistance, consider meeting with a financial planner. Ask friends, relatives or colleagues for referrals, then contact recommended advisors to see if they’ll meet with you for an hour or two. Don’t hesitate to ask about fees upfront.
