- Even as a financial journalist, I had to develop my own financial habits through trial and error.
- Over time, I made four smart money moves that put me on the path to financial success.
- Paying down debt, contributing to a 401(k) as soon as possible, and building an emergency fund created financial security.
I didn't become a financial journalist or financial expert overnight.
Like many, I've had my own ups and downs. It's one of the reasons I believe that my financial advice resonates so well with readers — because I am speaking from a realistic view of everyday money management.
That being said, I had to build my own financial goals and habits and learn how best to manage my money through trial and error. After a good number of triumphs and defeats, there are moves that I have made with my money that have really helped me grow my financial knowledge and security.
Here are four smart money moves that I have made with my money:
1. I started contributing to my 401(k) immediately
As soon as I started working, I immediately started contributing to my employer's 401(k). While some people were partying and traveling in their 20s, I was new to the workforce and receiving regular income, so I made sure that I contributed at least 10% to that plan.
Being that I started so early, I have been able to take advantage of compound interest and time to watch that nest egg grow. As Lynnette Khalfani-Cox once told me, "money that you start saving now will have more time to grow in your retirement account." I am still contributing to my 401(k) and have been able to increase my percentage over time.
2. I paid off my student loans
Paying off that debt was one of the best decisions for my financial life. I had a mortgage, a car note, and the costs of everyday life, and that student loan payment was money I could be saving or traveling with or using for anything other than a student loan payment.
I worked aggressively to pay that debt off by doubling up on the payments and using bonuses to make lump sum payments. When the end was near, I did freelance work to bring in more money to put directly toward that debt.
3. I grew my emergency fund for financial security
Right after paying off my student loans, I got to work on growing my emergency fund. I was determined to save at least six months of expenses in my savings account. As time has gone on, I have been able to sock away one year of expenses and even build an investment portfolio through a brokerage account. This emergency fund provides security in case the unexpected happens.
4. I pay off my credit card every month
This one money move has had a major positive impact: I don't carry credit card debt from month to month, so I don't pay interest. This has also had a positive impact on my credit score, because paying my credit card off each month keeps my utilization rate low. Remember, your credit utilization — the amount of available credit you are actually using — is one of the factors that determines your credit score.
Building financial habits and setting financial goals is a personal journey that takes time and experience to develop. These were the money moves that worked for me and set me on the path to financial security.
