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If you’re feeling behind on money matters, you’re not alone.
Whether you're juggling student loans, building a career, or saving for the future, making sound financial decisions can feel overwhelming. The good news? You don’t need a finance degree to take control of your money.
This guide covers three key areas — taxes, credit, and investments — and clears up common misconceptions that often lead people astray. If you’re just getting started, this is your go-to primer for financial confidence.
1. Understanding Taxes: It’s Not Just About April 15
Common Misconception: “Taxes only matter when I’m filing.”
Reality: Sound tax planning happens year-round — and it can save you money.
What You Can Do:
- Know your tax bracket. Your income determines how much tax you pay. Understanding this can help you estimate withholdings and plan ahead.
- Consider contributing to retirement accounts. Contributions to a traditional 401(k) or IRA may reduce your taxable income.
- Track deductions and credits. Student loan interest, education expenses, and some medical costs may qualify.
Tip: Use a free online tax calculator or consult a tax professional to avoid surprises.
2. Credit Scores: Why They Matter and How to Improve Yours
Common Misconception: “I only need to worry about credit when I’m buying a house.”
Reality: Your credit score affects your ability to rent, borrow, and even get a job in some cases.
Credit Basics You Should Know:
- Payment history is the most important factor. Always pay bills on time.
- Credit utilization should stay below 30% — that means not maxing out your cards.
- Length of credit history also matters. Keeping older accounts open may help.
Action Steps:
- Check your credit report annually for free at AnnualCreditReport.com
- Set up autopay or reminders to avoid late payments
- Consider a secured credit card if you're new to credit
Reminder: Building credit is a marathon, not a sprint. Every on-time payment helps.
3. Investing: Start Small, Think Long-Term
Common Misconception: “Investing is only for the wealthy.”
Reality: Anyone with even a small monthly budget can start investing — and time is your biggest advantage.
Why Should You Consider Starting Now?
- Compound returns aim to help your money grow faster over time.
- Employer-sponsored plans like a 401(k) often include matching contributions — that’s free money.
- Investing regularly can help smooth out market ups and downs.
Easy Ways to Begin:
- Consider opening a Roth IRA if you qualify — it's tax-advantaged and great for young investors
- Consider using low-cost index funds or ETFs to diversify
- Consider setting up automatic contributions so investing becomes a habit
Disclosure: All investing involves risk. Past performance does not guarantee future results. Consider your risk tolerance and time horizon before making investment decisions.
Final Thoughts: Financial Wellness Is a Journey, Not a Destination
Building financial literacy doesn’t happen overnight. But by understanding the basics of taxes, credit, and investing, you’re setting a strong foundation for long-term success.
Next Steps:
- Subscribe to credible financial newsletters
- Use budgeting apps to track your spending and savings
- Ask questions — from professionals, from resources like FINRA, and from trusted sources
Check Your Sources
Be cautious of financial advice from unverified influencers or social media. Always confirm facts through reliable institutions and consider working with a licensed financial advisor. You can verify advisors and firms at FINRA’s BrokerCheck.
Disclosures:
Provided content is for overview and informational purposes only and is not intended and should not be relied upon as individualized tax, legal, fiduciary, or investment advice. Neither the companies of OneAmerica Financial, Fuller Financial, nor their representatives provide tax or legal advice. For answers to specific questions and before making any decisions, please consult a qualified attorney or tax advisor.
