Millions of people are crippled by debt because of a lack of awareness and resources to make sound financial decisions. It’s never too early (or too late) to begin thinking about your financial future. Being proactive is the best debt prevention there is. You need to make financial planning a priority and continue to find helpful resources the rest of your life.

As a young adult, you’ll need credit for immediate reasons like:

  •     Renting an apartment
  •     Getting utilities
  •     Financing an automobile

With a good credit history built up, you’ll have access to credit later on for things like:

  •     Buying a home
  •     Getting a better job
  •     Qualifying for loans with a better interest rate

Later on in life when your debt is gone you will need to shift your goals from debt reduction to building up your net worth. There are several things you can do to get started at a young age so you are financially sound at retirement:

  •     Become a saver and pay yourself first
  •     Have an emergency fund that you don’t touch (unless it’s a true emergency)
  •     Invest in a retirement account
  •     Purchase enough term insurance to cover five times your income
  •     Live within your means