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Startup BusinessHow do I set myself up financially so that when age 40 comes, I am set? This is something that people always wonder when they graduate from college and get their first full time job. How much should I spend a month? What should I do with the money sitting around in my bank account? When do I start?

The answer is: start early. Start planning from the beginning what you need to be doing with your cash flow. Some take on too many bills at once and live paycheck to paycheck. Others just stash all their money in a checkings account and forget about it. Regardless of where you stand, brainstorm a plan in your mind about how to get ahead.

Expensive and flashy items when you are young can wait! You are much better off saving this cash and paying off all existing debt/loans. Try saving up three to six months of living expenses in case of emergencies. Employment can come and go for a young adult. Its best to save up and ensure you have enough money to live without a job for several months.

Depending on what type of job you have, you should think about creating an emergency savings account. This is advantageous for those who are freelancers or paid through a commission based structure. This is a separate savings or bank account for emergency situations.

Pay off your debt and build your credit history. If you focus in on this, you will build a string credit score for future dreams of taking out a mortgage on a house or buying a new car.

Look into investing in reasonable insurance polices. This along with building a retirement account will ensure constant growth for a significant time period. By following these guidelines, you will have the ability to have a sound financial base to raise your family with. Consider hiring a financial advisor to help consult you in what your best options may be.