The other thing to start doing is to start reading Motley Fool, It’s a great way to learn about investing. If your company has a 401K plan, you need to put money into that through payroll deduction as soon as you are able. But don’t strap yourself by socking away money to the point where you’re in financial difficulties meeting your expenses.
One biggest cash drain is looking at that paycheck, and thinking “Wow! Lot of money.” Which, by college standards, it may be, but by adult world standards, it’s probably just okay. Resist the temptation to eat out every day and go out after work. It’s easy to spend $100 week on eating out. That’s $400 tossed away. Don’t buy a new car, which is another common mistake.
If your company doesn’t have a 401K, try to take advantage of an IRA account at a bank. Shop the rates at various banks, and find one in your area that has competitive rates. You want to establish a relationship with a bank. We’re on our way back to common sense banking practices. Depending on where you are located, a regional bank may offer you the best rates and security.
Right now, many mutual funds are paying -22%. So yes, CDs are your best option until you have a cash cushion built up.