Right off the bat, new grads need a car, a place to live, and a plan to reduce whatever credit card or student loan debt they've accumulated while in school, says Eleanor Blayney, [CFP®] consumer advocate for the Certified Financial Planner Board [of Standards], the group that grants certification to financial planners. But the list doesn't end there. "You'll need a reserve fund to support you if you lose your job, or have to relocate for a new one," she says. "In short, you need cash in the bank before you need shares of Apple or Google."
Prioritizing needs ahead of wants is critical for young workers just getting started on their own finances, Blayney says. Generally it's advisable to maintain emergency savings of at least three to six months of living expenses. Read more >
Associated Press/ CNBC
May 17, 2011