6 Best Money Tips for Young People

When you start earning a steady income for the first time, it's easy to spend too much on luxuries or to take on debt. But it's also the best time to set yourself on the path toward wealth.

Save one-third of your income. Putting $1 out of every $3 you earn into the bank might sound like a lot, and it is. At some times in your life, such as shortly after graduation or upon the birth of a child, when your budget is strained to capacity, it's impossible. But at some point, it will become not only possible but essential to creating stability in your financial life. That's because significant savings are the only way to weather the inevitable tough periods, such as layoffs, as well as move toward longer-term dreams, such as starting our own business. Yes, saving such a big chunk of money each month means sacrificing some comforts and indulgences in the short term, but it's the only way to get closer to that ultimate goal of financial security.

Don't scrimp on career-related investments. There's one area where it's okay to be a spendaholic, and that's when it comes to investing in your future earning power. The category includes not only education expenses, but also voice lessons for an aspiring podcaster, how-to books for those with potentially lucrative hobbies, and a new wardrobe for office workers who need to impress the higher-ups. Even hiring a maid service is an investment in your future if you use the extra time it creates to work on your writing or website.

Cultivate your most ambitious dreams. The primary reason many people don't reach their long-term financial goals is that they fail to ever articulate—even to themselves—what those goals are. Do you want to quit your day job and knit full-time? Or open the next big cupcake shop? Or star on your own reality television show? If you're having trouble putting your finger on it, ask the people who know you best. Brainstorming with your significant other, family members, and friends can help shake loose your own thoughts.

Pay off all but your cheapest student loans early. Student loans that carry a 5 or 6 percent interest rate (or higher) are costing you much more than your savings can earn in this current low-interest rate environment. That means paying off a chunk of your student loans will immediately start saving you more money than you could if you continue to make those slow and steady monthly payments. Of course, not everyone has the cash to pay off a large portion of their loans, and it will probably take five-plus years after graduation to get to the point when you can even consider it. But once you have a healthy bank account, don't wait too long to start paying off big chunks of those more expensive student loans.

Don't wait to invest until you have "extra money." Waiting to start a retirement account until you feel like you can afford it might mean that you can never retire. Don't wait to open up a 401(k) account if your employer offers it, even if you start by contributing just 2 percent of your salary. Soon, you can raise that percentage to 4 percent, and eventually to 10 percent or higher. For extra motivation, plug your numbers into a retirement calculator on bankrate.com, and see how much you need to fund your golden years—it's probably much more than $1 million.

Give back—on your own terms. Companies know that we want to make a difference in the world, and they want to profit off of that desire. That's why so many of them are cashing in on the $600 billion plus "green" industry by claiming to be environmentally friendly when they're not. It's so common that it has a name: "greenwashing." Don't be fooled by all-natural labeling; investigate why the company is claiming to be good for the earth before spending your money. A similar lesson applies to giving to charitable donations: Use Charity Navigator to check the background of your chosen organization before donating any money to make sure it's going to use the money the way you want it to.

8 things your hospital won't tell you

A hospital is supposed to make you better, but you may not feel too well after reading this. Some words of advice: Be your own health care advocate.

1. "Oops, wrong kidney."

In recent years, errors in treatment have become a serious problem for hospitals, ranging from operations on wrong body parts to medication mix-ups.

Though the system is improving, it still has a long way to go. Patients should always have a friend, relative or patient advocate from the hospital staff at their side to take notes and make sure the right medications are being dispensed.


2. "Getting out of the hospital doesn't mean you're out of the woods."

A study released recently by Resources for the Future, a nonprofit group that conducts independent research on public health issues, says infections of sepsis and pneumonia acquired in the hospital may kill 48,000 people each year. What's more, the study shows, these infections cost $8.1 billion to treat and lead to 2.3 million total days of hospitalization.

 For all of modern medicine's advances, the best way to minimize infection risk is low-tech: Make sure anyone who touches you washes his or her hands. Tubes and catheters are also a source of bugs, and patients should ask daily if they are necessary.

3. "Good luck finding the person in charge."

In a sea of blue scrubs, getting the attention of the right person can be difficult. Who's in charge? Nurses don't report to doctors but rather to a nurse supervisor. And your personal doctor has little say over radiology or the labs running your tests, which are managed by the hospital. Some facilities employ "hospitalists" -- doctors who act as a point person to conduct the flow of information. Most hospitals now have rapid-response teams -- specialized personnel who can rush to the bedside to assess a declining patient. Haskell urges patients to know the hospital hierarchy, read name tags, get the attending physician's phone number and know how to reach the rapid-response team. If all else fails, demand a nurse supervisor -- likely the highest-ranking person who is accessible quickly.


4. "Everything is negotiable, even your hospital bill."

When it comes to getting paid, hospitals have their work cut out for them. Medical bills are a major cause of bankruptcy in the U.S., and when collectors are put on the case, they take up to 25% of what is reclaimed, according to Dr. Mark Friedman, the founder of billing consultant Premium HealthCare Services. That leaves room for some bargaining.

5. "Yes, we take your insurance, but we're not sure about the anesthesiologist."

The last thing on your mind before surgery is making sure every doctor involved is in your network. But because the answer is often no for anesthesiologists, pathologists and radiologists, what's a patient to do?

 If you're alert enough, ask for someone in your network. If you're seeing a physician or going to any medical facility, call your insurance company for a current list of network physicians, hospitals and labs. Also, if the referral appointment is being made by your primary-care physician, request the scheduling staff to find specialists, hospitals and labs in your network.

6. "Sometimes we bill you twice."

Crack the code of medical bills, and you may find a few surprises: charges for services you never received or for routine items, such as gowns and gloves, that shouldn't be billed separately. Clerical errors are often the reason for mistakes. One transposed number in a billing code can result in a charge for placing a catheter in an artery versus a vein -- which can come to a difference of thousands of dollars.

7. "All hospitals are not created equal."

How do you tell a good hospital from a bad one? For one thing, nurses. When it comes to their own families, medical workers favor institutions that attract nurses. But they're harder to find as the country's nursing shortage intensifies; by 2020, there will be a deficit of about 1 million nurses. Low nurse staffing directly affected patient outcomes resulting in more problems, such as urinary-tract infections, shock and gastrointestinal bleeding.

Another thing to consider: Your local hospital may have been great for welcoming your child into the world, but that doesn't mean it's the best place to undergo open-heart surgery. Find the facility with the longest track record, best survival rate and highest volume in the procedure; you don't want to be the team's third hip replacement.

Source: http://money.msn.com/