Kimberly Palmer, senior editor and personal finance columnist for US News & World Report, just released a new book to dispel the myth that today’s young professionals are slackers and in more debt than previous generations. The book, “Generation Earn” investigates the financial dynamics that drive our country’s 20 and 30 somethings - greater earning power, advanced degrees, and a fresh, more holistic outlook on financial success.
“I wrote the book because I felt like there’s so much focus on how bad our generation is with money, but it’s really not true. — also it’s not helpful to keep telling us how bad we are,” Palmer explained to FishbowlDC.
But the book isn’t all analysis. ”Generation Earn” offers real, applicable career and money advice – some of which Palmer shared with FishbowlDC in her top six money tips for young professionals.
Save one-third of your income.
Putting one out of every three dollars you earn into the bank might sound like a lot, and it is. At some times in your life, such as shortly after graduation, or the birth of a child, when your budget is strained to capacity, it’s impossible. But at some point, it will become not only possible but essential to creating stability in your financial life. That’s because significant savings are the only way to weather the inevitable tough periods, such as lay-offs, as well as move towards longer term dreams, such as starting our own businesses. Yes, saving such a big chunk of money each month means sacrificing some comforts and indulgences for the short-term, but it’s the only way to get closer to that ultimate goal of financial security.
Don’t scrimp on career-related investments.
There’s one area where it’s okay to be a spendaholic, and that’s when it comes to investing in your future earning power. The category includes not only education expenses, but also voice lessons for an aspiring podcaster, how-to books for those with potentially lucrative hobbies, and even a new wardrobe for office workers who need to impress the higher-ups. Even hiring a maid service is an investment in your future if you use the time it creates to work on your writing, or website.
Check out the final four tips after the jump and visit Palmer’s site here for more info about “Generation Earn.”