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As one starts their career, it is often quite difficult to look into the future from a financial point of view. There are too many day to day expenses that easily swallow up one’s earnings. However, starting early is often the best way to ensure financial success in the long run. 

Here are a few tips.

One of the first ways to achieve financial success is to contribute to a 401K retirement account at your place of employment. (If you are self-employed, consider setting up your own 401k plan.) many employers will offer to match a certain percentage of your contributions, which will surely help your savings grow faster. (If your employer matches dollar for dollar, that is an immediate 100% return on your savings, hard to find any other investment with that kind of return).

Additional actions that you can take include: 

• Set up an Emergency Fund. Aim to have enough funds to cover three to six months of living expenses in case of emergencies.
• Contribute to a Health Savings Account. If you are enrolled in a high-deductible health insurance plan at work, you can set aside up to $3,650 annually – $7,300 for family coverage – to cover expenses above and beyond what your health insurance pays. These contributions have triple tax savings – contributions are tax deductible; they grow tax deferred and can be withdrawn tax free to pay health care expenses.  
• Fund 529 College Education Savings Accounts. If you have young children (or hope to have some day) open up a 529 account and begin funding future education costs. In addition to college costs, certain K-12 expenses can be funded by 529 plan withdrawals. It’s never too early to start.   
• Contribute to a personal Roth Individual Retirement Account (IRA). While current contributions are not tax deductible, future withdrawals are tax free. There is a maximum annual contribution limit of $7,000 in 2024 for those under the age of 50 (as well as certain income limits). This is only for long term savings but is a very valuable savings tool.

Deferring gratification is never easy, but establishing certain financial savings practices early in your career will only serve to benefit you long term. Good luck as you embrace your financial future.