The Five Foundations
By: Jared Novitzke
1. Save $500 In an Emergency Fund
The first and most imperative thing to do to become financially stable is to save $500 (or 3-6 months for adults) in an emergency fund. This fund should be kept in your bank separate from your normal savings account, and should only be utilized in true emergencies (e.g. job loss, etc.).
2. Get Out of Debt
Pay off all of your debt. Whether college loans or credit card debt, debt collects interest and can stack up against you in the long run, hurting your ability to grow your wealth.
3. Pay Cash for Your Car
Do not take out a loan for a car you cannot afford. It is more economical to purchase a less expensive car and to save up for a better car rather than having to pay off a brand new car.
4. Pay Cash for College
Utilize a sinking fund, saving monthly for the ultimate goal of not taking out any loans to pay for your schooling. Your parents can also help you with this, and may also have a sinking fund of their own set up for you to further your education.