Before we get into the tips portion, I have to put out a challenge to the younger crowd out there. Saving money and smart financial habits are so important to do NOW not later. Just putting away $50 a month towards retirement will pay off in the end. Things are going to be challenging for our generation, since we’ll probably live long after retirement age and things will be way more expensive than they are now.

As for saving for a home,  it’s important to put down at least 20 percent for a down payment to avoid paying extra each month for private mortgage insurance. You also need to get your credit score in shape, particularly for the bread winner of the couple, since this will be the only one the lender will take into account. If you use a typical mortgage calculator, you will find that a 1 percent difference in interest can save you thousands. For a 500,000 loan, the difference between a 6.5 and 5.5 percent interest is about $120,000 for the life of the loan!

Matt and I smiling with the key to our first home! One financial goal = completed.

Hopefully, any fear or guilt hasn’t kept you from reading on. There are easy things you can do now to move toward your goals. First, obviously, you need to figure out what your short- and long-term goals are.

One of the ways we worked towards our goals was by calculating our net worth each month. Using skills in Excel (try searching for a template online or use an online service), we created our own spreadsheets tracking our assets and debts and how they changed from month to month. Suddenly, when you add up all your purchases, those impulse buys don’t seem worth it when you’re seeing them take away from your overall monetary worth and your future goals.

It was fairly easy for us to save money, as we both lived at home with parents (rent free) before we were married. This is not an option for everyone, but it was a choice we both made as a way to achieve our financial goals. I highly recommend sitting down and both writing out your priorities and goals and examining your finances. Are your expenditures getting you closer to those goals? If not, think long and hard about how much conveniences and stuff are really worth it. Is it worth putting off your dreams? Some sacrifices are harder than others, but it will eventually be worth it.

Finally, I would suggest you not only make your goals known, but find friends to help you reach the goals. I’m not telling them to feed your pet piggy bank. Rather, if you’re training for a marathon, it’s easier to train with a buddy.

What are your financial goals? Are you actively working to acheive them? Please share! We can be each others’ financial goal buddies!

In college, a close friend of mine had her identity stolen. She had never been late on any payment, yet someone had applied for credit cards and opened cell phone accounts in her name. Sadly, it took about a year to be fixed. It scared me enough to learn more about credit and be proactive with my finances.

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Recently, I found out about CreditKarma.com. With positive reviews from the Wall Street Journal and USA Today, and after doing some extra research, I thought I would give them a try and get my credit score. It has you enter various information and gives you a score along with a “report card” that gives you an A to an F in seven categories.

My report wasn’t much of a surprise, except that I got an F in “total accounts.” Say what?! They recommend having at least 41 credit accounts in order to get an A!  They say, in general, more accounts equals better creditworthiness. While not as weighty as paying on time, this bugged me enough to investigate.

My research didn’t support that extreme of a number, so take a sigh of relief you overachievers. Here’s what I am taking away from it:

• Have as many accounts as you can handle

• Have a variety of cards, but most should be from major issuers (Visa, AmEx, etc.)

• Retail accounts don’t really improve credit, but if you have to have them, they should be limited and only where you frequently shop

• Opening several accounts just to increase a score will likely hurt, not help

Overall, Credit Karma seems like a good resource, but shouldn’t be the only source. Don’t forget to monitor your score through AnnualCreditReport.com (not the site with the annoying commercials) at least once a year.

As for me, I’m sticking with my habits (maintaining low balances on high-limit cards, paying them off on time and in full every month, etc.) and don’t plan to open about 30 new accounts. Do they even make wallets that big? Maybe fanny packs would have to come back in style.