Starting Your First Job? Financial Decisions Await

Column distributed by Hearst Connecticut Media Group.

Links to resources referenced:

• Bank of America: Your guide to creating a budget plan
  • https://bettermoneyhabits.bankofamerica.com/en/saving-budgeting/creating-a-budget  
    • Related column excerpts:
      • “Bank of America’s Better Money Habits website lists steps a person needs to consider, including calculating net income, tracking spending and setting realistic goals.”
      • “You’ll also find budgeting ideas such as a 50/30/20 strategy (50% for needs, 30% for wants and 20% for savings or debt) or a pay-yourself-first plan (put an amount in savings before paying bills or making purchases).”
• Federal Trade Commission’s Consumer.gov website
  • https://consumer.gov/content/make-budget-worksheet  
    • Related column excerpt:
      • “The Federal Trade Commission, the Navy Federal Credit Union and financial technology company Intuit offer budget worksheets. You can also find budget-tracking cellphone apps, such as Rocket Money and YNAB (You Need a Budget).”
• Navy Federal Credit Union budget worksheet
  • https://www.navyfederal.org/content/dam/on-track/personalfinance/graphics/budgetworksheet.pdf
    • Related column excerpt:
      • “The Federal Trade Commission, the Navy Federal Credit Union and financial technology company Intuit offer budget worksheets. You can also find budget-tracking cellphone apps, such as Rocket Money and YNAB (You Need a Budget).”
• Intuit: Understanding budget templates
  • https://www.intuit.com/blog/budgeting/budget-templates/  
    • Related column excerpt:
      • “The Federal Trade Commission, the Navy Federal Credit Union and financial technology company Intuit offer budget worksheets. You can also find budget-tracking cellphone apps, such as Rocket Money and YNAB (You Need a Budget).”
• Experian: How to Create a Personal Cash Flow Statement
  • https://www.experian.com/blogs/ask-experian/how-to-create-personal-cash-flow-statement/
    • Related column excerpt:
      • “Once you have a budget, think about managing cash flow. One method offered by the credit reporting agency Experian is a personal cash flow statement. The statement has two sections: a balance sheet (what you own versus what you owe) and a cash flow statement (your cash inflows and outflows).”
• Discover: Credit Card Interest Calculator
  • https://www.discover.com/credit-cards/credit-card-calculator/credit-card-interest-calculator/
    • Related column excerpts:
      • “Before you use credit, be sure to understand how to repay it. You can easily run the cost of borrowing by using a credit card interest calculator offered by Discover.”
      • “Take this example: You have $1,000 in credit card debt with interest of 29% that you want to pay off in 12 months. If you pay $25 a month, it will take you 159 months (13.25 years) to pay off interest of $2,953 on the $1,000 you borrowed. (The 29% example is real. When was the last time you checked your credit card interest rate?)”
• Bankrate: Effective strategies for getting out of debt
  • https://www.bankrate.com/personal-finance/debt/how-to-pay-off-debt/#audit
    • Related column excerpts:
      • “The consumer financial services company Bankrate’s ‘Effective strategies for getting out of debt’ points out that paying off debt “requires commitment, patience and a little bit of grace”. Personally, I would strongly recommend avoiding debt for consumer purchases.”
      • “If you are looking to pay down debt, Bankrate highlights a few  strategies: debt snowball (pay the minimum required on all debt, but put added dollars to the one with the smallest balance); debt avalanche (a similar plan, but the added dollars go to the debt with the highest interest rate); and debt consolidation (all debt is combined into one new loan with one interest rate and one payment).”
• FINRA: How Your Credit Score Impacts Your Financial Future
  • https://www.finra.org/investors/personal-finance/how-your-credit-score-impacts-your-financial-future
    • Related column excerpt:
      • “Borrowing to buy a house is a different story, raising the importance of credit scores, which assess a lender’s risk of extending a loan to you. A good resource is FINRA’s ‘How Your Credit Score Impacts Your Financial Future.’ FINRA oversees member broker-dealers who do business in the U.S.”