Money Matters

Money matters isn't something that my friends and I usually talk about, but I think it's an important topic to think about as I enter the workforce and have to start planning my career and subsequent retirement. The more I learn about personal finance, the more I want to talk about it.

One of the most helpful experts in this area for me has been Manisha Thakor. A financial literary expert particularly for women, her advice is to the point, practical, and always presented in a relatable manner. Listen to an interview here. She has also appeared on ABC's Good Money.

The take-away points I think for every college grad are:

• The purchase price of a house should be 3x your household income

• The purchase price of a car should be 1/3 your household income

• "Rough rule of thumb, don't take on more in total education debt than you think you are going to earn on average annually during your first 10 years after graduating (from college or grad school). In plain English, if you think you'll make $50,000 a year, don't take out more than $50,000 in loans. The logic behind this is that if it takes you more than 10 years of paying 10% of your income a year in student loan repayments, it's going to be tough to meet your other financial obligations." (5 Items Will Consume 50% of Your Income - are You Prepared?)

Another thing I've learned from is to consider investing in a Roth IRA once you start earning income. As the experts advocate, start saving now because compound returns favor the young.