First step is to prepare a budget.  It can be simple, income must exceed expenses. Divide expenses into needs and wants.  Pay for needs (rent, food, tuition, clothing) first and then prioritize the wants (entertainment, eating out, vacation).  Be sure to use net income – after required deductions such as taxes, Medicare, Social Security, medical insurance, loan, and retirement deductions.

Debt comes in many forms.  But all debt requires that you pay more than fair market value for an item so
you can have it now.  Common examples include:
- Car: new cars lose about 25% of value when first driven off the lot.  Try for simple interest, no pre-payment penalty and shop for best rate.
- Home: mortgages are usually 15 or 30 years.  Target fixed rate with no pre-payment penalty.  Don’t forget down payment and escrow requirements.
- Student loans: use judiciously, try hard to get scholarship money.  Student debt cannot be discharged in bankruptcy.

Compound interest is your greatest friend when investing and greatest enemy when taking on debt.  Credit card revolving credit can be especially destructive.

The single greatest factor working in your favor for wealth creation is time. Get to know the Rule of 72 and see how it works for you.

Credit score: Your ability to secure loans will largely be determined by your credit score (higher is better).  The calculation is complex, but the surest way to kill a credit score is to miss a payment – even a small one.  This can follow you for 7 years.

Credit cards should only be used: (1) if you can pay off the full balance every month without exception, and (2) in a true emergency.

Investing: The most important bill you pay is to yourself.  Have money deducted from your paycheck every month – you won’t miss it and it will fuel your retirement.

Use caution - If a sales pitch sounds too good to be true it probably is.

Prepare a longer-term financial plan that considers “big ticket” items such as home purchase, children (with college education), tax strategy, insurance, and retirement.  The planning requires practice and regular revision but pays huge dividends.

Financial advisors:  A typical fee is 1% of assets managed.  The are also fee-only financial planners/advisors. Most financial advisors don’t beat the stock market.  There are many low-cost mutual funds/ETfs that are fine initial investing.  Make sure and advisor’s first obligation is you (a fiduciary), not product sales.  Are they savvy about the impact of taxes, insurance, and retirement planning.