It’s time to start thinking about RETIREMENT! There are so many tools for you to take advantage of, but there’s one major advantage above all the rest: Time. Although our income potential usually increases over time and we think we have a lot of expenses now, it’s never going to get easier than it is now! Think about it. Before you know it there’s the expenses of being independent, eventually the expenses of being a homeowner, a parent, college for the kids, etc. There is no better time to start saving and investing for YOUR well-being. For us, 70’s and 80’s (and above) babies, it’s twice as important than it ever was for our parents. The number of people who have pensions that will provide them a steady stream of income after retirement is extremely low (nurses, teachers, police officers, government employees, etc, have pensions). So we have to supplement our own retirement income, especially since Social Security is just not reliable to live comfortably. Who knows if it will even still be around by the time it’s time for us to retire?

So the next step toward financial success if finding out what kind of plans are offered via your employer. Your homework: Get the name of the plan and who you can open the account with, and ask if your employer matches your contributions (for example: your employer might offer a 403b plan that can be opened either with Fidelity or First Investors, and they match up to 3% of your contibutions). Don’t worry about the difference between a 403b and a 401k yet, that’ll come later! Also, find out if there isn’t a plan offered at all, there’s something very important for you to do too! Till next time!

Once you’ve sorted out your income, debts and investments…it’s important to set up goals and budgets for yourself. Be realistic and honestly attempt to keep within the parameters you set up for yourself. Mint.com will help with that. Next, it is important to find out your credit score. As you pay down your debts/loans, etc., you should be keeping track of how your credit score changes. Www.Freecreditreport.com is one way to do it. If you call to “cancel” within the free 30 day trial period, they will offer you to keep it for about $8/m (original price is about $16). I believe it’s well worth it. It alerts you when anything new pops up (negative info, address changes, etc), and helps you avoid discrepancies that can go by unnoticed for ages.

“Pay yourself first!” As you get paid, 20%-25% should be AUTOmatically transferred to an account you do NOT use on a daily basis. In fact, try an online money market account like E-Trade or ING. Why? Because building an Emergency Fund is not only helpful for your tough times, but it’ll keep you from piling on debt because you were not prepared for a big expense. Go set that up! Eventually, a portion of this can also be moved to buy investments when there’s a buying opportunity… More on that later ;)

Change your output if you are not happy with your input. And follow-up!

First and foremost, sign up for a www.Mint.com account. Set 15 minutes aside tonight or tomorrow to get your financial picture in order. You can’t get to where you want to be without knowing where you are now. This free money budgeting (and, if applicable, simple investment tracking) tool will display your spending habits (and performance). It also provides a place to safely and privately enter your student loans, bank accounts, retirement accounts and credit cards…where your daily activity is downloaded for you to keep track of debts being paid and costs being incurred. You can also enter and include any assets you own (car, home, etc). Once you know what your net worth is, you will realize whether or not you really want to change it… Now, go!!!

Here’s a toast to the world of finance. A toast to my short, yet successful, career as a Financial Services Representative. A toast to being awarded 2008-2009 Rookie of the Year at my firm, and for ranking #4 in Life Insurance Portfolios built for our clients. A toast for loving what I do. A toast to self-employment and for its freedom. Ultimate freedom. Looking forward to growing and building my career —year after year. A toast for getting one step closer to achieving my own personal financial goals. A toast to my future first home (ETA: Summer 2010). A toast to my future family; the reason for all my reasons and countless hours of work. And last but not least, a toast to my love, my clients, and my family for being the epicenter of my world. Salud!