When you start a new career, you are likely to be in bad financial shape. You’ve just finished college, and you likely had to quit your college job to move to your new one. You need furniture and business attire. You may be tempted to tell yourself, “I’ll catch up on my retirement savings in a few years when I’m settled, and my pay has increased.” This statement only makes sense if you don’t understand the magic of compounding. You must begin your retirement savings and get any employer match starting with day one, and you must never raid this money for any purpose that doesn’t involve death or serious bodily injury. Life has a way of adding expenses to your financial plate at every turn, and you will never reach your financial goals if you do not start a steady savings plan very early on.
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Last Updated: 6/25/2018