Tough economic times may not seem like the right moment to think about your financial future. But experts say, this is exactly the right time -- especially if you're just starting out in the work world.
First things first for young people just beginning their careers.
"Start now in looking at your financial situation and your future,” says Susan Utsugi, senior vice president of Central Pacific Bank. “And sometimes, it can be overwhelming. But you can take it step by step and you can certainly set yourself up so you do have a good financial foundation."
So where do you begin?
"You can't always control your income but you can certainly control your expenses. So you need to know what you're spending on. So I would make a list of all your expenses,” she said.
And in this day and age, we may think of things as necessities when, in fact, they are luxuries.
"Are there things that are really not necessary or are there areas where you can save. I would recommend that they take a really hard look and not just think of today, but think of the future,” she advised.
Utsugi says saving money is a life lesson that should start when we're young.
It can help us avoid problems later on.
"It's good to create an emergency fund,” she said. “It's never too early to start saving. Kids who get birthday money or Christmas money should start saving so it becomes a habit, and it becomes a way of life."
There are pitfalls facing all of us - but especially younger workers.
They can be tempted by the easy access to credit cards.
"Credit cards are good and bad. Credit cards are a tool. They should be there to help you with your expenses on a regular basis, but you should always try to pay it off at the end of the month,” she said.
Utsugi also said credit cards are a good way to establish a credit history.
But, she added, pay on time and try to pay off the balance.
