From Here to Financial Happiness

Day Five Twin Wins

Talk to financial advisors and they'll tell you that everybody's financial situation is different, so there are no one‐size‐fits‐all solutions. That's largely true. Still, there are two pieces of advice that apply to everybody – and, if you aren't following them, it's time to start.

First, if you have a 401(k) or similar employer‐sponsored retirement savings plan that includes a matching employer contribution, you should sock away at least enough to get the full match. Let's say your employer matches your contributions at 50 cents on the dollar up to 6% of pay. If you contribute 6%, your employer will kick in 3%, for a total of 9%. It's like getting an immediate 50% return on your money. Not contributing the full 6%? Do it today. Failing to contribute enough to get the full 401(k) match ranks as one of the most foolish financial mistakes.

Second, you should never carry a credit card balance – another of the most foolish financial mistakes. Your credit cards might charge 20% interest, and possibly more, on the unpaid balance. Over the long haul, that's far more than you'll likely make by investing your money, even if you invest in the stock market. Got a credit card balance? Make it a priority to get it paid off.

• Yes, I'm contributing enough to my employer's retirement plan to get the full match.
• Yes, I've paid off all credit card balances or I've got a plan to get it done as quickly as possible.

You could carry a credit card balance – or you could ...