Start with this list. Focus on the essentials. Read More...

My last semester of college was during the fall months, and for the first time, I was living on my own, and not in a college dorm and not with my parents. No roommates, either, though that singular, private living situation wouldn’t last too long.

This apartment was a few miles off campus, past the entrance to the interstate highway, where rents were much cheaper. That’s exactly what I needed. My last responsibilities at college were student-teaching and preparing for my senior recital, the capstones to my music education degree. So I was still a student — a student without a job for at least a few months, without money being earned, and I don’t even remember how I was able to afford my rent.

The living situation was a big change from the dorm rooms in the preceding years. Everything is provided in the dorms — paid for along with tuition, naturally, but students never had to worry about outfitting rooms with basic furniture. At least a bed and a desk.

Somehow, I owned a bed and mattress. I have no memory of where they came from.

And that’s the only furniture I had in this apartment. Well, besides the bed, I had a television on the floor in the living room. I didn’t even have blinds or curtains on the patio door. If it didn’t come with the apartment, I didn’t have it. And nothing came with the apartment.

As a result, the place wasn’t exactly ideal for entertaining guests. I had no visitors so I wasn’t too concerned about the state of my domicile. All I needed to be able to do was sleep — which I did — and practice — which I sometimes did.

Maybe I had a lamp.

What would have been helpful to me is a guide that explains exactly what you need or should have in your first apartment, whether you have roommates or not.

Here is that guide. I’ve listed what you need, ranked in order of importance, by room. Many of the furniture items can be found on a budget. Always check second-hand stores or Craigslist.

You need these items for your bedroom.

1. Mattress. This is the most basic item. You need to be able to sleep relatively comfortably. A mattress will do the trick. If you’re on a budget, air mattresses can be quite comfortable these days, and much less expensive than a fancier typical mattress. A step up might be a futon. Unlike just about everything else, I would not buy this item on Craigslist or used at a thrift store.

2. Lamp. Shine some light in the bedroom. You’ll be thankful for illumination, especially in the winter when the sun sets early.

3. Alarm clock. Well, you probably have one on your smartphone. You may be living in your own for the first time and not sure how you’re going to pay rent, but I’m sure you’re managing your phone just fine. But having a real alarm clock as a back-up has saved me many times.

4. Window curtains. The one place where you don’t want neighbors peeking in is your bedroom. Maybe your place comes with blinds, and if so, curtains are further down on the list, but still good to have.

5. A bed. If you want to prop your mattress up a little higher than floor-level, you’ll need a bed. I lived in one apartment without a bed, though, so it is possible to get by without one.

You cannot have a bathroom without these.

1. Toiletries. Expect to brush your teeth every day. Grab all the basics including toilet paper, mouthwash, toothbrushes and toothpaste, soap, shampoo, shaving items, and a first-aid kit or at least adhesive bandages (Band-Aids).

2. Towels. Drip-drying takes far too long. You can get by with one, but two would be better. Feeling fancy? Get one of those towel hooks that fit over the bathroom door.

3. A shower curtain. Most apartments won’t come with one. Shower curtains can be inexpensive, and they give you privacy and added safety in the bathroom. You may need to buy curtain rings separately. You may even need to get your own curtain rod.

4. A plunger and toilet brush. One is for cleanliness and the other is to prevent a big mess.

Let’s go into the kitchen. Who’s cooking?

1. Dishware and silverware. No need to get fancy here. My first set was inherited from a friend. A few plates, a few bowls, forks, spoons, butter knives, and if you’re ready, a sharp knife set.

2. Pots, pans, a spatula, a ladle, a slotted spoon, a regular spoon, oven mitts, and a can opener. Unless you plan to order in every day and every night, you’ll be cooking. No need to get anything fancy here unless you really love spending time in the kitchen. Just the basics will suffice.

3. Dish soap, napkins, and paper towels. And if you have a dishwasher, dishwashing detergent.

4. Trash can. You need at least one in your apartment, and if you do have only one, it should go in the kitchen.

Not everyone has a living room, but here’s what you would need.

1. Something to sit in. In my first apartment, this was the floor. Somehow I managed, but it wasn’t ideal. You can find at least a cheap chair. I eventually upgraded — in my third apartment — to a cheap sofa from IKEA.

2. Curtains or blinds for the windows or patio/balcony door. Again, privacy is the main concern here, and some type of covering might be required by your lease.

3. A television stand or mount. These days, fancier people are mounting televisions on walls. In my first apartment, I got by with leaving the TV on the floor.

4. A coffee table. Again, I didn’t have one until later in my adult life, but this is a basic piece of furniture that separates the barely-adults from the mostly-adults.

Beyond these items, everything else could be considered a luxury. Chances are good that you won’t be in this apartment for a long time. You can upgrade and add items one at a time. Living in comfort is a process, and when you first move out on your own, there’s no expectation that you have the best-decorated and best-outfitted apartment among your friends.

Save the money now. Take care of your necessities and put away any cash you have left over. You can take your time and ignore the pressure to have everything in your life and your living environment together immediately.

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Seeing your ripped bod fade before your eyes? There’s no excuse for that! Start getting healthy again. Read More...

Please note, this is a tongue and cheek confessional about my laziness and apathy. Like my pursuit of a singing career, this confessional may or may not be based on delusion.

Much has been said about the differences between straight fat and gay fat. We gay men can be a superficial gaggle of judgment. This is why many of us come equipped with our very own fruit fly. Put another way, this is why many straight women have a personalized GBF (gay best friend).

You see, many XXs have learned that asking their straight XYs for opinions on a hairstyle, a dress or an expensive pair of shoes (a.k.a. an investment) is an exercise in futility. Their straight partner simply wants to keep the peace. Their gay partner, on the other hand, wants them to look fabulous at any costs.

It’s from this vantage point that I confess that I cringe when I see the naked effigy of myself in the mirror. Who is he? From whence did he come?

The downfall of my hot bod.

It wasn’t long ago in the club-thumping 2000s when I could join my people in a shirtless display of diva-house music abandon. It was less long ago that I became too old for this to be my main form of merrymaking. Work and life happened. Working out six days a week turned into working out six days a year.

I just turned 43 and Linda Evans* has been telling me since I hit puberty that “40 isn’t fatal.” My career, my relationship, and my life are all great. There’s no reason why this 40-something qualifies for Celebrity Fit Club.

When I read Why 40 Is the New Age of Fitness, I was assured that my masterpiece of a dad-bod is my choice and not my burden. I’ve adopted a lazy, sedentary lifestyle nourished by processed flour and sugar. I never ride a bike without a helmet only because I never ride a bike. I only buy organic, fair trade, and gluten-free food that never gets within a 10-mile radius of a peanut, but this clearly isn’t serving my waistline.

I argue that most of us Gen Xers (yes, Millennials and Boomers, we exist too) have chosen our physical states. With advancements in technology and medicine and our greater understanding of human physiology, all of the sexy excuses we manufacture don’t negate the fact that many of us have no valid reason for letting ourselves go.

I’m not clinging to my 20s like an aging pop star. I just want to be in the top 20% of my cohort.

I lied in the first paragraph. This is both a confessional and an accountability statement. I can do better and, I argue, so can you. Save for a valid medical condition, and only you can know that, you can get better with me.

Here’s what I’m doing to get healthy and back in shape:

Eat healthy.

I avoided the word “diet” because a diet is temporary and a lifestyle is forever.

With all my weight fluctuations and my exercise physiology degree, I know that a well-balanced, vegetable-based diet that avoids processed foods and includes more fish and poultry and less red meat is the best diet.

I’m seeking clean foods, like something a sun-kissed Greek server would serve me on holiday in Mykonos.

Be active.

It turns out that couch-surfing does not burn calories. In fact, with couch-surfing related activities, couch-surfing increases one’s caloric intake. For most of us, it’s about calories in versus calories out. Let’s get off the couch!

I’m doing high-impact weight training for one hour a day five days a week. This is helping me gain muscle and strength. I started with low weights and am gradually increasing them.

High-impact weight training reduces the risk of injury, both exercise-induced and otherwise. It should also boost my metabolism. This means I’ll increase my caloric burn even when resting. These reasons are why weight training is important for women, too.

I’m running three to five miles a week because I enjoy it. As we age, however, our bodies produce more cortisol with longer aerobic activities. This is why many part-time running hobbyists struggle with weight loss. Adopt whatever aerobic activities you enjoy, even if it’s walking. Just move and be careful to not O.D. on cortisol.

I’ve started yoga, again, too. Yoga and I love each other “like a love song.” Yoga (and I) loves you, too. As we age, our muscles shrink and we lose balance. Losing balance, whether walking, standing or being active can cause injury. Our goal isn’t to go from the couch to the doctor’s table. Though, I guess that depends on the doctor.

Be zen.

We Gen Xers are entering or are in our peak earning years, have teenagers and college students, and have more exes than an NFL chalkboard. All are stressful.

I’m meditating. Oprah’s meditating. Somewhere in the great beyond Steve Jobs is meditating. Why? Because it’s good for us. Meditating reduces stress and taps into our feelings, those gut feelings that help us make better life decisions. Meditation can be a good part of a healthy lifestyle.

In fact, my husband and I follow Hal Elrod’s The Miracle Morning formula. This practice incorporates all the new-agey stuff many of the world’s most successful people do. Hal’s belief (and I agree) is that if the six practices outlined in his book are the most common practices of the world’s most successful people, surely one must work for us.

Choose happiness.

Being happy, like being healthy, is a choice that makes us healthier. I won’t get angry if I don’t get back into shape as rapidly as I did in my 20s. I won’t go off the rails if I see another wrinkle.

Victor Frankl said that between a stimulus and a response there’s a space, and in that space, we make a choice. If a concentration camp survivor chose to not let his circumstances destroy his happiness, I can do similar. This applies to every stimulus I receive and every response I choose.

This is how I’m proving Linda Evans right. Please support Linda Evans.

* Linda Evans in no way sponsored, endorsed, or even knows about me or this article.

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A single hospital visit can bankrupt you. What happens if you total your car and can’t afford a new ride? Make sure your assets are covered. Read More...

The idea of insurance doesn’t necessarily jive with the mindset of a young person. It took me way too long after college to really get serious about insuring my stuff. What’s life without a little risk, right?

In reality, that mindset doesn’t usually last through the first emergency or disaster that strikes while you’re uninsured. It’s easy to laugh it off when you’ve been lucky, but one bad day teaches you the importance of making sure you cover your assets.

Being a fully functioning adult requires that you be ready to protect what’s yours.

Why insurance is important.

Insurance is like wearing a helmet while you’re biking. You may not need it, but you’ll be glad you put it on when you take a tumble.

“Having quality auto, health, renter or homeowner, and life insurance is vital to protecting yourself and your family — or your future family — from the unexpected,” says blogger Eric Rosenberg of Personal Profitability.

But choosing an insurance company is hard work. First, decide what coverage you need. If you need both renters and car insurance, can you choose the same company and save money with a multi-policy account?

The two most important factors with insurance are the premium (how much you pay each month) and the deductible (how much you pay to file a claim and receive money from your insurance company). Your car insurance premium may cost $100 a month with a $500 deductible.

That means if you get into an accident and do $600 worth of damage to your car, you’ll have to pay the $500 deductible before your insurance covers the rest.

Car insurance.

Most companies offer a multi-car discount for families with more than one automobile. Premium rates vary based on how much coverage you have, so don’t base your judgment solely on how much you’ll pay each month.

For example, coverage for uninsured or underinsured drivers is optional, but often a good idea. When I got hit by an uninsured driver, my car suffered $3,000 worth of damage. My insurance company handled everything because I’d opted for that extra coverage.

This is a common theme in every area of insurance: risk tolerance. You need to toe the line between how much you’re willing to pay monthly, and how comfortable you are with the risk of being caught uninsured. In an ideal world, we could all afford comprehensive coverage in every area, but the real world is a little more restrictive.

Renters insurance.

Lee Huffman, who owns several rental properties, says he always recommends renters insurance to his tenants. Most renters policies cost less than $20 a month, but can reimburse you in case your valuables are stolen or damaged.

“As a rental property investor, we remind our renters that the landlord’s insurance covers the building only,” he says. “It does not cover any of the personal items of the renters, nor does it cover the renter in case someone gets hurt and tries to sue them.”

Take pictures of your most prized possessions and keep receipts for anything valuable. Those will help if they’re lost or damaged and you need to file a claim.

Health insurance.

The Affordable Care Act requires that you have health insurance or pay a fine. This year the fine will be 2.5% of your income or $695 per adult — whichever is greater. For example, if you have an adjusted gross income of $40,000, your fine will be $1,000.

One hospital visit can bankrupt you when you don’t have health insurance. You are your most valuable asset, so make sure that’s covered. Millennials in good health are often fine purchasing a high-deductible plan and paying a smaller premium. You can use a Health Savings Account in conjunction with your high-deductible plan for even better results.

Life insurance.

This type of insurance is vital if there’s someone relying on your income, like a spouse or child. If your spouse dies, can you afford to live without them? Can you pay the mortgage by yourself? Can you raise your child on one income? Single parents should consider purchasing life insurance so their children will have protection in case they pass away.

Rosenberg recommends term, not whole, life insurance for millennials. The younger you are when you purchase a policy, the cheaper it will be.

“You are never as young and healthy as you are today, which is the best time to lock in a 30 year policy,” he says.

Don’t let the unexpected ruin your finances. Cover your assets with the right insurance and you can shore up your finances from disaster.

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Are you really adulting? Or are you checking things off a list? Just because you’re doing what others say you “should” doesn’t mean you’re truly adulting. Read More...

Now that most of my friends are close to 30, I’ve seen some pretty big changes in their lives: weddings, babies, mortgages. Our lives mirror our parents now more than they do our younger cousins: fewer frat parties, more 401(k)s.

It’s easy to feel like an adult as you cross off those big milestones. But all those changes don’t make you an adult. Being an adult is how you handle and go through life, not about the steps you hit on your way there.

Getting married.

A few weeks ago, I met up with an old friend I hadn’t seen in three years. We chatted over dinner and he said he couldn’t believe I was married. I told him that married life is not any different than living with my boyfriend, which we’d done for almost two years before tying the knot.

Successful marriage requires you to be more considerate and thoughtful of the decisions you make, but just being married doesn’t make you any more of an adult. I’ve seen so many people get married for the wrong reasons — even though they knew it was a bad idea.

Marriage doesn’t require any sort of special adulting hall pass. Walking down the aisle can seem like an adult decision, but the reality is that all you really need is $20 and a piece of paper.

Getting married does not make you good at relationships, it doesn’t make you more mature and it certainly doesn’t make you happier. It can give you a tax break and a whole lot of wedding gifts, but marriage is really something you do because it feels right, not because you’re at “that point” your life.

Buying a new car.

If you’re used to driving around in a used car or your mom’s hand-me-down, buying a new shiny car can feel like the most adult decision. But buying a new car is one of the worst ways to start off your adult financial life.

A new car loses its value as soon as you drive off the lot, and the monthly payments can impact your ability to save for retirement, an emergency fund, or something else you really want.

I know it can feel embarrassing to drive an old car after all your friends have upgraded. I still had my 1999 Toyota Avalon that while most of my friends were driving cars actually produced in this millennium.

But I didn’t want a new car. I wanted to pay off my student loans, save for an emergency fund, and travel the world. New car payments would have only made all these things impossible.

Adulting is about creating a life you want and you’re happy with, not one that’s based on other people’s decisions or what society says you should have.

Buying a house.

Buying a house is the ultimate purchase. Until you buy a home, you’ve been living somewhere that doesn’t belong to you. For most people, a home is the biggest asset — and a mortgage is the biggest monthly expense.

A mortgage is not just something adults “do.” It’s a huge financial decision that you shouldn’t take on if you’re not ready for it. Just because everyone around you is buying houses doesn’t mean you have to get one too.

Buying a home can change the landscape of your financial future. It impacts whether or not you can move somewhere else for a better job or if you can afford to work on the road. A home can be a great investment or it can cost you thousands of dollars.

Bottom line.

Nothing automatically makes you an adult. Being an adult is about taking care of your responsibilities while creating a life that has value to you. It’s about being a person you’d be proud to be friends with. Buying a house or car or getting married doesn’t make you an adult. What you do with it does.

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What’s the ROI on grad school? Read More...

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Someone with a graduate degree is more likely to have higher lifetime earnings than someone with a bachelor’s degree. The difference is even bigger when compared to someone who hasn’t been to college or who hasn’t graduated from high school. Even though grad school can be expensive, it might still be worth.

On the other hand, just because grad school is supposed to lead to a higher-paying career doesn’t mean it’s the right choice for you. Grad school can be expensive, and it’s not always necessary. General trends may not apply to your specific situation. You don’t need to follow a path just because someone else marks it out, and you can’t assume that grad school will automatically result in more money.

Before you decide to go to grad school, carefully consider your situation. You need to do the research and carefully consider the options before you determine what makes the most sense for you and your situation.

Concepts

  • What are some of the reasons that grad school is considered a natural progression?
  • Understanding the factors that make a grad degree “worth it.”
  • Reasons to go to grad school, and reasons to avoid it.
  • What role does the prestige of the school play in determining whether or not grad school is worth it?
  • Consider the cost of grad school, and your return on investment.
  • Ways that grad school can impact your life, from family and relationships to your time availability.
  • How to determine whether or not you are ready to tackle grad school.
  • Tips for be realistic as you explore the idea of grad school.

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Resources

Georgetown UniversityGeorgetown study on college
PayScaleGraduate degree salaries
CNBCLaw school ROI

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It feels really great to save money, so do that. Read More...

Some people think that being frugal is the same as being cheap.

It’s not.

Being frugal is a lifestyle. Being cheap is a quality.  Neither is better than the other; they’re just both very different.  Being cheap is also considered a negative quality when in reality it’s another way of being financially responsible.

Being frugal ≠ cheap.

The difference between the two is that being cheap means you probably won’t spend money on anything of extreme value and you won’t pay for high quality. You are most likely to buy the item at the lowest cost.  And that’s O.K.  Being frugal means you plan where to spend your money and you don’t mind spending on quality as long as you’re getting the best deal possible.

Being frugal may also have a negative tone because frugal people are often considered cheap.  That’s a big misconception and, like I said, neither one is bad.  In fact, if everyone in the world lived a little more frugally and let themselves be cheap once in a while we would all probably have more savings and less debt.

Frugal = self control.

No one says that counting pennies isn’t smart. Well maybe they do, but they’re wrong.  If you take the time to compare prices, shop around, and really think twice before spending money, you have incredible self-control. That’s never a bad thing.

Avoiding impulse purchases and overspending (even on necessities) is a smart way to live because it makes sure you live within your means. It also helps you stay away from using credit cards just to make ends meet every month.

It may take more effort to say no to your favorite cookies at the supermarket because you don’t really need them or skip buying those new shoes because they aren’t on sale, but your bank account with thank you for the savings.

Saving is a natural high.

Think about the last time you saved $1.00 on bananas or $100 on a hotel room. Didn’t you feel great?  I know I did.  Saving money, even $0.50, is a great feeling. It means your hard earned money is going to work for you instead of you working for it.  Think about how much extra cash you would have in your pocket each month if you stretched every dollar to its possible limit.

Saving money is natural high and the only way to get that buzz is to spend less than you earn and buy things at lower prices than you planned.  Living on a budget is great, but living below budget is even better.

Use apps to make a grocery list to avoid impulse purchases and sign up for mailing lists to get weekly flyers. Find the lowest prices on everything from milk to bedroom furniture.

Being frugal gives freedom.

When you save money on one thing you can spend that money somewhere else.  Paying less for everything in your life opens doors for new opportunities.  Maybe being frugal helps you take an overdue vacation. Perhaps your frugal choices give you the new roof your house desperately needs. Maybe frugality helps pay off your student loans faster to avoid interest charges.  Whatever the reason, living on less helps you do more.

If you need motivation to save more money and live more frugally, make a list (or dream board) of all the things you want to do in life.  Prioritize these items realistically and start saving towards your number one goal.  You may even want to open a separate bank account to watch your savings grow.  Remember that every dollar saved is another step towards your goal.

All thanks to being frugal.

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Don’t let your hatred of exercise get in the way of your health. Read More...

I hate exercise for the sake of exercise.

However, I know physical activity is an essential part of healthy living. So I suck it up and exercise anyway. But that doesn’t mean I always follow a prescribed method of exercise that involves going to the gym or moving to a workout video.

Do something fun.

The fact that I don’t like exercise doesn’t mean that I refuse physical activity. Quite the opposite. I love being active. I enjoy riding my bike and hiking. I prefer walking to driving. I love swimming and playing tennis. I recently started fencing with my son and learning how to use a punching bag.

Your exercise time doesn’t have to include a boring routine that you hate. It doesn’t feel like exercise when I’m in the pool or sparring with my son. It’s exhilarating and enjoyable. I get a workout, and it doesn’t feel like a chore.

Find something active that you enjoy and use that as your primary method of exercise. It’s easier to stay motivated when it’s something you like, and you’re more likely to stick with it.

Break it up.

Sometimes you need to work on different aspects of your physical fitness. Most of my preferred activities involve cardio, and not much in the way of strength training. This means I need to devote some of my exercise time to strength training, even though it’s not my favorite.

I find yoga soothing, so I usually start with that. Many of the poses promote strength training using your body weight. If I start the day with five to 10 minutes of yoga, I feel good mentally and it is good for my body.

Throughout the day, though, I look for other ways to boost my strength training. Maybe it’s a few reps with the hand weights or a set of squats. Because I belong to a gym for the pool access, there are days I just suck it up and work out with the weight machines for strength training. But I do it in broken up doses so I don’t end up stuck doing something I hate for what feels like FOREVER.

You can do the same. Break your exercise into 10-minute chunks. Even if you are doing something you hate, you are more likely to stick with a regimen if you don’t have to block it all out and devote a whole half hour at a time to it.

Do something else at the same time.

Distract your mind by engaging in another activity at the same time you exercise. After I broke my wrist, I couldn’t engage in many of my preferred activities. Instead, I had to walk on the treadmill for most of my cardio. I hate that.

To take my mind off that fact, I listened to podcasts or brought my Kindle so I could read. Having my mind engaged allowed me to exercise without really registering how much I hated it. Some days I even answered email while on the treadmill.

I have friends who use a stationary bike while watching TV. They are distracted by the TV, but still get the exercise in. Use this technique to trick yourself into moving forward with exercise — even if you don’t normally like exercise.

Find a buddy.

Working out with a friend can feel like fun, instead of a chore. I don’t usually workout with someone, but there was a time when I had a walking buddy. He and I had similar fitness goals and we met twice a week to walk the track at the university.

Your workout buddy can also help you turn exercise into a game. Look for ways to reward yourselves for improved performance. You can even compete with each other, as long as you keep it friendly.

Don’t let your hatred of exercise keep you from developing a healthy habit. Trick yourself into exercise and you might be surprised at how much you can accomplish — and how much better you feel.

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Do you have a true concept of what is “real” about money after college? Read More...

I had plenty of money in college. I was rolling in it. My parents had given me a credit card so I could charge anything I needed, like groceries, utility bills, oil changes, and more. They paid my rent and didn’t ask questions when I spent more than $250 a month on food.

I worked during college, too – sometimes two jobs at once. Those jobs helped me buy what I wanted (which was a lot). If you’ve ever been to a college town, you know that there’s a plethora of shopping options nearby. Within a five-minute walk, I could access boutiques, vintage shops, and record stores.

If I wanted food, I could get anything delivered. Even if I had a fridge full of groceries, I’d get pizza, pad thai, or fried chicken delivered to my house. In a given month, I’d spend more than $100 on eating out.

I never told myself “no.”

That is, until I graduated.

Welcome to the real world.

The summer following graduation, I had an unpaid internship and a part-time job. For the first time, money was tight. I was paying my own rent that summer and commuting an hour one way (this is back when gas was close to $4 a gallon).

Suddenly, I had to reign in my spending. I said no to going out and shopping. I read blogs about couponing, cooking cheap meals, and getting free stuff.

That summer was a wake-up call. I couldn’t keep spending the same way. When I finally got a full-time job and started being totally responsible for all my bills, I realized how important it was to budget. I was only making about $28,000 a year, and after bills and student loan payments, there was hardly anything left.

Even though my budget was cramped, I decided I wanted to pay off my student loans early. I started tracking every dollar religiously. I was now saving money with the same intensity that I had spent money in college.

I found freebies, coupons, and special deals. I shopped at Aldi — my favorite discount grocery store — and stocked up on the essentials. I avoided eating out and always brought my lunch to work, even when it was Chef Boyardee ravioli.

In 2012, I created my blog to chronicle my debt payoff progress. I wanted to see if I could actually pay off my debt in three years. I thought my blog could serve as inspiration to anyone else trying to do the same thing.

A year after I started my first job after graduation, I got a new job and a small pay raise. When my rent went down, I put the difference toward my loans. Any time my expenses decreased, I just added that money toward my debt.

When my then-boyfriend and I moved with another friend, my rent was cut in half. Again, I put the amount I was saving toward paying down my student loans. That year, half of my paycheck went toward my debt. In November 2014, I made my last student loan payment.

Friends and family members started asking how I paid off my loans so quickly. I directed them to my blog, where I had written about my debt payoff journey. But soon I decided that I wanted to create one simple place where people could go and learn how to pay off their own student loans.

That’s why I created the Student Loan Knockout: A 20-Day Journey to Debt Freedom, my self-paced online course where you can learn the steps I took to become debt free. There are action items for each module and basic steps you can follow. This is not a course for finance experts. It’s for people like you feeling overwhelmed by your student loans and wondering where to turn.

In the real world of money after college, you need to make tough choices and get serious about your budget. Even though the road to debt freedom was filled with sacrifice, being debt free feels sweeter than any shopping spree or take-out meal.

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Do you want to make the most of today’s money for tomorrow? Make it rain for your future self. Read More...

One of the best times to set aside money for the future is now, while you’re young and compound interest can work longer in your favor.

Even if you think you don’t have enough money to invest, the truth is that you probably do. And one of the best things about using accounts that offer tax-free investment growth when your young is that you pay taxes at a lower rate.

If you want to make it rain later, the right planning now is the way to go.

Roth IRA

The Roth IRA is a solid choice when you have your first job. (There is also a Roth 401(k), so if your company offers a retirement plan, ask if there is a Roth version.)

With a Roth account, you make your contribution after taxes are taken out of your paycheck. However, this isn’t such a bad thing when you consider that right now you’re probably making very little anyway. Your taxes are lower than they might be later on.

A Roth account is all about the tax-free investment growth. When you withdraw money, you don’t have to pay taxes on it like you do with a “regular” retirement account. The longer you invest in a Roth IRA, and the longer the money grows, the bigger your benefit later on because you have the potential for more gains the longer you grow your account.

It’s a huge deal to not have to worry about paying taxes when you withdraw from your account.

Health Savings Account

If you want to level up your tax-free investment growth, consider opening a Health Savings Account (HSA) and contributing regularly.

The HSA offers a unique chance to invest because your contributions are made before taxes, so you get a tax deduction. Later, if you withdraw the money for qualified expenses, you don’t have to pay taxes on that money, either. Money in the HSA is truly tax-free — as long as you use it for qualified health care costs.

You can’t immediately invest the money in the HSA, though. Most of the time, you can only invest after your account balance exceeds $2,000. If you make regular contributions, you will get to that point and be able to enjoy tax-free growth.

In order to qualify, you need to have a high-deductible health care plan. As long as you don’t have really high health care costs, this type of plan can be great. It’s usually less expensive than other plans, and you can put your savings in the HSA.

I like to think of my HSA as a health care retirement account. I don’t actually use it now. Instead, when I am older, I’ll withdraw from my Roth IRA for income, and use the HSA to pay for medial co-pays and other medical costs. It will all be done with money that I won’t have to pay taxes on.

Now is the perfect time to start putting your money to work for you. Your taxes are likely the lowest they will ever be, and you can keep your expenses small, too. Focus on tax-free investment growth today, and you’ll be more likely to enjoy financial freedom later.

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How does your credit score relate to your credit report? Here’s what you need to know. Read More...

There are various stages of adulting.

Putting on real pants every day and having something green in the fridge is generally considered Level 1. At some point, you graduate to Advanced Adulting and start thinking about things like getting a credit card and maybe even buying a house. That’s when the concept of credit becomes part of your life.

That’s when the concept of credit becomes part of your life.

Your credit profile – a history of your behavior borrowing and repaying money – will impact you in pretty much every way. From getting loans and credit cards to finding a place to live, the health of your credit is really important.

In all honesty, the credit system is rigged. You are expected to go into debt in order to prove you’re financially responsible. Who made up these rules, anyway? But whether you like it or not, understanding how your credit is tracked and measured – primarily via your credit reports and scores – will help you play the game right and save as much money as possible.

Without finding yourself drowning in debt.

Let’s start with your credit report.

A credit report is the documentation of your history as a borrower, prepared by a credit bureau and supplied to lenders. It tracks all your personal and financial data, such as where you’ve lived and worked, your Social Security number, your financial accounts, payment history, credit inquiries, accounts sent to collections, bankruptcies, and more.

Generally, the bad stuff on your credit report will stay on it for about seven years. Bankruptcy will remain for about 10. After that, it falls off your report. You can’t control what shows up on your credit report as long as it’s accurate, but you can request that any errors be fixed.

That’s why it’s important to keep an eye on all your credit reports (yes, you have multiple). The best way to monitor your credit reports for errors or fraud is to visit the ONLY website approved to provide credit reports at absolutely no cost. Annualcreditreport.com allows you to access your credit reports from the three major credit bureaus – Experian, Equifax, and Transunion – once per year for free.

Like I mentioned, it’s a good idea to review these reports regularly. The process is not going to be enjoyable (it’s a report, after all) and you’re going to try really hard to put it off.

Please, just do it. Spotting an error or fraudulent account could make all the difference in whether you’re approved for that next card or get a good rate on a mortgage.

Ok, so then what is a credit score?

Credit reports contain a ton of information. You have to spend time reading through what’s there in order to get a sense of the overall health of your credit.

But if you’re a lender dealing with thousands of applications every day, you don’t have time for that. So the credit score was invented in order to give a quick snapshot of a borrower’s creditworthiness.

You actually have dozens of credit scores, all calculated according to different models. However, they all pretty much take into account the same things, even if the algorithms are slightly different.

FICO is the most common credit score lenders look at. The possibilities range from 300 to 850. Here’s how it’s calculated:

  • Payment history (whether you pay your bills on time): 35%
  • Credit utilization (the amount of debt you owe in comparison to available credit): 30%
  • Length of credit history (how long you’ve been using credit): 15%
  • Credit mix (how diversified your credit accounts are): 10%
  • New credit (how often you’re applying for new accounts): 10%

Your credit scores float up and down depending on your credit activity, which is normal. Over time, however, you want to have scores as high as possible.

It’s important to note that, while you can check your credit reports every year for free, your reports do not include your scores. There are paid services you can use to see your credit scores from the major bureaus, as well as receive credit monitoring and fraud protection services.

You can also use sites like Credit KarmaCredit Sesame, and Quizzle to see your scores for free. However, you’ll generally get your “D-list” credit scores here and not your more “official” FICO score. My credit score sometimes shows a difference of nearly 100 points, depending on what source I use.

Use these sites to gauge your overall credit health, but take them with a grain of salt. No two scores will ever be the same, anyway.

The world of credit is definitely confusing, but you don’t have to stress about it too much. As long as you borrow responsibly, always pay your bills, and keep an eye out for errors and fraud, you should be just fine.

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