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Everybody wants your dough! That’s the reality of life. But, the least you can do is manage who you give your hard earned money to. Here are some tips that will help you spend smart from this day forth.

What’s Your Net Worth?

You wouldn’t start to diet without knowing your weight now would you? We thought so. If you’re pushing your twenties, it’s time to start thinking about financial planning. And you can’t do any financial planning if you don’t know what your net worth is. For those of you who are lost, it’s your assets minus your liabilities. While this might seem simple enough, surprisingly almost half of the Americans don’t know anything about their net worth, or think of it as important, which is madness!

Start Investing

At age 30, start investing your money in stocks, bonds, and other safe investment options. When you’re beginning, the key is to keep it simple. Few investors can beat the stock market investing in individual stocks, so try mutual funds instead, which allows you to approximate the returns of the total stock market. The key is to invest in total index funds that can keep your portfolio well diversified among small and large company stocks. Yes, they’re not exciting, which is why they are perfect. Also try picking out a few companies that you are familiar with for a long term strategy. You can just buy the stocks and forget about them knowing that the company will still be standing and more importantly, that you won’t lose money.

Make a Decision

We all want to own waterfront homes on Florida’s Gulf Coast (okay, maybe that’s just me!), that time will come, but for now, you need to make a decision. The first thing is to divide your annual rent outlay with the selling price of your prospective home. If your answer is anywhere below 15, it will probably be cheaper for you to buy a home. If not, renting will make more sense.

Limit Credit Cards

This one’s a no-brainer, but it’s equally important especially if you’re young. People often times fall prey to credit card vendors that camp outside college campuses. The result is many young people have to deal with paying additional interest when they fail to make their repayments. In short, credit card debt is poison for you. But if you have to, use just one card instead of a dozen.

Make Fewer Withdrawals

Most people have no qualms using up all their cash and then hitting the ATM over and over again in a single month. What you really should be doing is saving up those ATM receipts. Minus 20% from it, and then use that money as your budget for the following month.

Find Your Money Match

When you’re young, you will probably be falling in and out of relationships. But, before you decide to walk the isle or even move in together, pay attention to how that person manages their money. This will give you a good idea of whether or not you are a money match. If you’ve already tied the knot, no problem, all you and your partner need to do is take on a new attitude towards your finances. It is important to remember that as our lives change, our finances change, which means you will need to have someone with a good head screwed on their shoulders.