You can waste time. Just save your money

Time is the most valuable asset in your pocket right now.

The longer your savings and investments can accumulate and compound, the greater the potential payback (just look at the chart on page 7) from even a tiny amount on a regular basis. Another thing going for you is your potential for earning more job income. As you move on in your career, you can likely anticipate many years of higher income ahead. Think
of it as income that’s waiting for you a bit down the road.

This is not to say you have time to do nothing. Wait, and you squander your time advantage. The earlier you begin to save and invest even small amounts of money, the more your assets can grow.

Sure, join the circus; but keep a financial plan

At its simplest, a financial plan outlines what you’d most like to do in the long and short term, then estimates how much money you need to accumulate to achieve those goals.

There are no wrong answers. Raising tuition for graduate circus school may be just as valid as saving for a house, if that’s most important to you. This is your life’s wish list, after all, whether it includes starting a family, saving for a dream home, financing a sabbatical abroad or simply giving yourself the flexibility to explore your options.

If you’re stuck deciding, there’s certainly nothing wrong with saving for saving’s sake. Your goal might simply be to save $150 a month towards your future “whatever”. It’ll pay off in the long run, once your objectives do come into focus.

A financial plan is not rigid. Your goals, income and obligations can and will change over time. Enlist the financial equivalent of a “personal trainer” to keep your plan in sync with your life. An independent financial advisor can help refine your strategy once or twice a year.