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Ask Dave

Traps to Avoid After Graduation?

Graduating from college and debt free -- avoid these three major traps.

QUESTION: Cary is a senior at Tennessee Tech.  He is completely debt free and wants to know what he should do to stay this way after graduation.

ANSWER: Don’t fall into the three major traps of new graduates. 

Don’t lease a new car.  Pay cash for cars for the rest of your life.  That’s what millionaires do.  If you invest the average car payment ($378 a month for 63 months) in a good mutual fund from age 25 to 65, you’ll have $4.4 million.

Don’t rush into buying a home.  Save up some money and be patient.  Too many people buy houses they don’t need with money they don’t have.

Don’t get caught up in the credit card thing.

Just don’t go into debt, do pile up some cash and do live life on a plan.