What to Do When You Don’t Know Where to Start – aka Pre-Bacon 101

14 Jan

Hello bacon readers! Anita here, a former confused soul on the subject of money. Actually I am still a bit of a confused soul, but when it comes to money I’m finding my way! How? It took me a few years into my first real job to realize I had no idea what my colleagues meant by contributing to a 403b or an IRA account. I may have been an anomaly compared to my peers, but I actually had a growing savings account and needed to do something with my money. The problem is, I had no idea what to do and was completely intimidated by the subject of finance. Ladies, I know I’m not the only one.

So I did what I do best – I looked to the Internet and I started reading. I believe it was a NYT article on the subject of young finance bloggers that really got me motivated. I figured if my fellow 20 something kids could learn financial basics, so could I. Over time the more I read, the more my intimidation diminished and I believe the same can go for you. This is my advice to you.

Step 1 – Start reading. The more you read the better your financial vocabulary and the more you will realize that finance isn’t really that scary. No, really. The folks working on Wall St. are no smarter than you or I. It is their vocabulary that is intimating. Start by checking out a few of the blogs we have linked on the left hand side and don’t forget this one.

Step 2 – You are probably thinking, “Well duh, I am already here reading this blog. Now what?” Well one of the first and easiest steps you can take is to open a high interest savings account. It wasn’t long ago that I had all my money sitting in my bank account accruing a meager 0.25% interest so I opened a high interest online savings account and got rid of my crappy saving account – so simple really that everyone should do this. You can check sites like Bankrate for the highest rate out there. 3.5-4% interest may not seem like much but just think. It is probably 9x higher that what you are earning now in a basic savings account.

Sometimes it’s taking that first step that can be the most daunting task of all and when you don’t know where to start, looking to your bank account and interest rate can make a difference in the long run. More to come!

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