Finance - grads and recent grads

[Lord McBuckethead]

Early career retirement savings. Become experts on personal finance. Here is what to do.

Every dollar you save at 22 years old is worth 88 dollars to your retirement. Make the time to set a budget with your new income. Good news, The Money Guys have organized the Financial Order of Operations that tells you what to do with your next saved dollar to maximize your retirement.

1. Save up all of your deductibles. Health, property, auto, etc.
2. Make sure you participate in your employers 401k. Do the Roth Component if they offer it, but make sure you capture all of their matching funds. It is 100% immediate return. Keep putting money in until you get the entire match.
3. Pay off high interest debt. Credit cards. Do not carry a balance.
4. Max out a Roth IRA account. $7,000 max. Do this while you are young.
5. Max out your 401k past their matching contribution.

Once you complete #1, move to the next number.

Do not let your debt lock your life down. High interest debt should be avoided as much as possible your entire life.

Waiting to start just 5 years lowers your return from 88 per dollar down to 44. Do not wait. Set yourself up to build early. Your 50 year old self will love your effort.