Saturday, December 11, 2010

7 Money Tips for 20 somethings

Are you someone who is just fresh out of school and have been receiving your paycheck for the past few years?

How do you plan and organize your money so that you will have sufficient to meet your needs as well as plan for a nice vacation every now and then?

Here's a great article on Yahoo that teaches you 7 tips to better manage your money.
20-something Money Tips

To add a few more pointers to this.

  • Build up a portfolio of dividend paying stocks that you can eventually use to offset against daily expenses. For instance, I know of someone who has been buying dividend paying stocks for the past 7 years and now has enough dividends of about $24,000 annually to pay off for basic expenses. 
  • Plan a percentage for tithing and charity. Giving to charity has surprising effects and many good things do happen to you out of the blue.This has been my personal experience.
  • Split your savings into 3 bank accounts, one for saving, one for investing to grow your wealth and another for tithing.