Establish a cash reserve. As an immediate, short-term step toward achieving long-term financial stability, experts recommend having 3-6 months’ worth of take-home pay in a cash reserve. This will take some time to establish (unless you receive a graduation gift or other windfall), but diverting funds through automatic payroll deduction can provide a methodical way to meet this goal. As the term “cash” implies, your reserve funds should be in a bank account (savings or money market) that can be easily liquidated.

Evaluate the overall cost of your student loans and other debt; then prioritize payoff accordingly. Generally, this would mean paying off high-interest credit cards and private student loans, before accelerating payoff on federal student loans. But interest is not the only factor to consider in evaluating the total cost of your debt. You should also look at the other loan/credit terms, such as fees, interest capitalization, and cancellation and prepayment provisions.

Make regular contributions to a retirement account. Experts suggest that you will need approximately 70% of your income to maintain your existing lifestyle during retirement. Starting early is key to compounding wealth. For example, if you begin saving $2,000 each year, and the money earns 4% interest (after inflation), here’s what it will be worth in:

10 years	$24,012
20 years	$59,556
30 years	$112,170

(And this doesn’t include what your employer may match through a 401(K) plan!)

Once you have plans in place to cover these basics, you can consider other priorities, such as a home down payment, college savings, or other goals based on your personal situation.