Financial investor, hedge fund manager and financial advisor Brad Reifler has laid out some tips that he believes every young adult should be aware of. They include advice on budgeting, credit, paying through school, savings and understanding your paycheck.
Reifler argues that most of us would budget better if we thought of our budget as being a business budget rather than a personal budget. This way, we would be more aware of our expenses and limited income. He also believes we would plan better with this mindset, and be less likely to fall into heavy debt or unfulfilled needs. Seeing yourself as a business entity, can help you balance your income and expenses. Try it out and see if it makes a difference.
Understanding deductions is another important thing. Many people, especially young people, do not realize that the pay they get through direct deposit or check is actually much less, than what you really earn. Deductions include federal and state income tax, social security tax and medicare tax. Your real or gross income will be much higher than your net or take home pay. You might be able to get a tax refund if you qualify or meet certain criteria under tax laws. Keep in mind that things like a 401 K or health insurance will also further deduct from your gross pay.
Brad also suggests that you begin saving up early. Put aside a dollar a day or twenty dollars a week at an early age and you might see your savings grow substantially over the course of a lifetime. Add to the fact that compound interest builds upon past interest and you have a recipe for being well off during retirement. Save early and save often and you will have a nice chuck of savings for your retirement or home purchase.
About Mr. Reifler
Brad Reifler has worked in various positions in the financial industry. He has worked for investment firm Refco before starting out his own ventures such as Pali Capital and Reifler Trading company. His latest venture has been Forefront Capital. This is an investment company that targets the middle class, an often overlooked demographic when it comes to wealth management and retirement planning.