College grad advice: “CASH”

Michelle Singletary in the Washington Post discusses “CASH”  for college graduates after graduation. These really apply to anyone at anytime.

C – Credit: Pay credit cards in full and have them to establish a good credit history.

A – Assets: But I would add … the kind that go UP in value over the long run and not depreciate (these are really called consumables, not assets).

S – Student Loans: Manage them wisely.

H – Housing: Renting is appropriate for situations that change often be it job or location. Houses are for stable situations where income can afford the payments and relocation is not in the cards for some time. (Rent vs Buy)

C, S and H all have to do with wise management of your credit history which puts you in the enviable position of being able to get affordable credit. The joke in the past … banker’s give you credit when you can afford to pay it; the joke was on them when they began giving credit to those who couldn’t afford to pay it. A – provides the resources for flexibility in life … and the ultimate flexibility is to retire one day!

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