Gen Z and millennials are experiencing an unprecedented affordability crisis: rents are higher than they’ve been in years, and the concept of buying a home seems like a pipe dream; they are carrying more debt than previous generations; and they are confronting a tough and unpredictable job market. Even with a secure job and a 401(k), the uncertainty of the economy, surging home prices, and the volatility of the market would make anyone anxious about their money decisions, let alone young people who are only just beginning their financial journeys.

In this totally revised and updated edition, Beth Kobliner teaches readers how to pay down debt, get a good return on savings, and plan for the future. Straight from the latest research, she shows how to choose the right bank, avoid excessive fees, and rein in spending. Kobliner also offers unbiased advice on the latest trends in personal finance—from neobanks and social media influencers to online fraud and cryptocurrency. And she answers frequently asked money questions such as: When is it smart to rent rather than buy (and vice versa)? How can I improve my credit score? When is the right time to invest in the stock market—and how? How do I save money on taxes?

Get a Financial Life has already helped over half a million readers get a handle on their finances and build smart money habits, no matter how much—or how little—they have. No wonder it has remained the go-to personal finance resource for young adults for more than thirty years.

The publisher has allowed us to share the book's opening chapter, "Crib Notes: A Cheat Sheet for Time-Pressed Readers Who Need Help Now."

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IF YOU’RE OVERWHELMED by the idea of diving into a whole book on personal finance, this chapter is for you. It cuts to the chase and sets you on the path to a solid financial life. Adopting even one or two of these strategies will put you ahead of the game and—I promise—make a big difference sooner than you think. 

Of course, as someone’s mother once said, cheaters only cheat themselves. While this chapter is a good launching pad, ignoring the remaining nine chapters is a little like relying on an AI summary of Hamlet: You’ll get the basic plotline but never understand what all the fuss is about. That said, the following crib notes will give you the “need to know” basics. I’ve tried to list the advice in rough order of importance, but your priorities will depend on your own situation. 

1. Insure yourself against financial ruin. 

You need health insurance. It’ll help protect you if you have an accident or illness and guarantee that you don’t bankrupt yourself—or your family—if you run into any serious medical problems. For these reasons, health insurance should be considered your number one financial priority.  

If you work for a company that offers its employees health insurance, you’re lucky; participating in a plan at work will almost always cost you much less than buying a policy on your own because your employer pays for part of it. Your company may offer more than one type of plan; make sure you consider not only the price but also the extent of the coverage. You’ll want to find out exactly how much you’ll be expected to pay out of pocket before insurance kicks in (this is known as the deductible), the rules for seeing specialists, and what happens if you want to visit a doctor who doesn’t participate in the plan. 

If your job doesn’t offer coverage, if you work for yourself, or if you’re looking for a job, you’ll have to pay for it on your own. First, see if you can get coverage through a family member. Federal law says you can be covered by your parents’ or legal guardian’s insurance until you turn 26; some states will let you stay on even longer. If you’re married and your spouse is insured through work, see about being added to that policy. Many companies also cover unmarried domestic partners. 

If all else fails, you’ll need to purchase a policy on your own. You can comparison shop at healthcare.gov or go directly to individual health insurance companies. 

For additional tips on the insurance you need—and the kinds you should avoid—see Chapter 8. 

2. Pay off your debt the smart way. 

One of the smartest financial moves you can make is to take any savings you have (above and beyond money you need for essentials like rent, food, and health insurance) and pay off your high-rate loans. The reason is simple: You usually can “earn” more by paying off a loan than you can by saving and investing. That’s because paying off a credit card or high-rate loan that has a 20% interest rate is equivalent to earning 20% on an investment, guaranteed—an extremely attractive rate of return. (Actually, it’s even better; it’s the equivalent of earning 20% after taxes.) If you want a full explanation of this concept, turn to p. 28. Otherwise, take my word for it. 

The first step in attacking high-rate debt is to try to reduce your interest rate. Start by calling your credit card company and asking for a lower rate. (Seriously, this often works.) Next, see if you can qualify for one of the lower-rate cards listed on sites like Credit Cards.com or WalletHub. 

If you have several different types of debt—say, a balance on a credit card with a 24% interest rate, another credit card balance with a 16% rate, and a student loan with a 4% rate—pay off the debt with the highest interest rate first. One way to make this easier is to ask your federal student loan servicer to stretch out your payments for longer than the standard number of years by switching to a different repayment plan. This will reduce your monthly student loan payment, leaving you with extra cash, which you can use to pay off your credit card balances faster. Once you’ve gotten rid of your 24% card balance, increase the payments on your 16% balance. After you wipe out that one, increase your student loan payments to at least their initial levels. 

The only time it doesn’t make sense to kill your debt is when the interest rate you’re being charged is lower than the rate you can receive on an investment. If, for example, you have a student loan with only a 4% rate and no other debt, you’d be better off maintaining your usual payment schedule on the loan and putting your cash into an investment that pays you an after-tax rate greater than 4%, assuming you can find it. One such place would be a 401(k) with matching contributions, which is coming up in the next point. 

For detailed information on credit cards, auto loans, and student loans, see Chapter 3. 

3. Start contributing to a tax-favored retirement savings plan. 

This one might strike you as nuts at first. Why would you think about retirement now? But here’s the reality: Saving money in a retirement plan is one of the smartest (and easiest) things you can do when you’re young. If you’re fortunate enough to work for a company that offers a retirement savings plan like a 401(k), you should take advantage of it. The big attraction here is that many employers will match a portion of the amount you put into such a plan. That means the company contributes a set amount—say, 50 cents or a dollar—for every dollar you contribute, up to a specified percentage of your salary. That’s free money, equivalent to an immediate, guaranteed 50% or 100% return. There’s nowhere you can beat this. (In fact, if your company offers such a fabulous matching deal, you should probably contribute to the plan even before paying off your high-rate debt.) In addition, the federal government allows the money to grow tax-free. (See p. 121 for an explanation of how this saves you even more money.) 

At this point in your life, it may seem crazy to lock up your money in a retirement savings plan. Ignore that feeling. While it’s true that you won’t be able to withdraw your money from a traditional 401(k) until you reach age 591/2 without facing a penalty, the benefits of matching and tax-advantaged growth are so huge that this is still the best deal out there. If you switch jobs, you may be able to move your 401(k) money into your new employer's plan (or transfer it into something called an IRA; see below). Also, most plans allow employees to borrow against their retirement savings in an emergency. As of 2026, the maximum someone under 50 can contribute annually to a 401(k) is $24,500, which may be more than you can manage, but try to at least contribute the maximum percentage for which you’re eligible to receive matching funds. 

If you don’t work for an employer who offers a 401(k) or a similar retirement plan, you should start investing in an individual retirement account (IRA). The most someone under 50 can contribute to an IRA as of 2026 is $7,500 annually; if at all possible, contribute the maximum amount every year. 

IRAs don’t provide matching contributions, but certain IRAs known as Roth IRAs do offer one special benefit: There’s no penalty for withdrawing the money you contribute to them at any time. This is an appealing escape hatch if you’re afraid of tying up all your money. You’re not allowed to freely withdraw the interest you earned on the money you contributed until after you turn 591/2. (Note that some companies offer something called a Roth 401(k); see p. 123.) 

Bottom line: Max out your company’s 401(k) up to the matching limit if you have one. If that’s not an option, go with an IRA. 

For all your questions on tax-favored retirement savings plans, see Chapter 6.  

4. Build an emergency cushion using an automatic savings plan. 

The rule of thumb: Put away three to six months’ worth of living expenses to cover any unexpected cost that crops up in life, whether it’s a broken AC in the summer or a trip to urgent care. The easiest way to do this is to have the money automatically withdrawn from each paycheck and funneled into a federally insured, high-yield online savings account or something called a money market fund. (For more on this, see Chapter 4.) That’s a relatively painless way to force yourself to accumulate your emergency savings. 

Mathematically speaking, it’s wisest to max out your 401(k) with matching and then pay off your high-interest credit card debt before you start putting money into emergency savings. But you might feel more secure if you start putting a small amount toward your three-to-six-month cushion before you wipe out your high-rate credit card debt. To figure out how much you need to save per month to meet your goal, use the worksheet (Figure 2–1) on p. 13. 

5. Consider investing in stock and bond funds. 

Once you have your savings cushion in a federally insured, high-yield savings account, it’s time to get more aggressive with your investments and start paying attention to stocks and bonds, which have tended to earn more for investors over long periods of time, yielding higher returns that stay ahead of inflation. (For a discussion of inflation and why it matters, see Chapter 5.) 

The downside of stocks and bonds is that they’re riskier than savings accounts or money market funds. In other words, you can lose money by investing in them. So for money that you absolutely need to be there—say you’ve set it aside for a down payment on a home in a couple of years—don’t invest it in stocks or bonds. 

Only you can decide how much risk you’re willing to accept, but there’s an old rule that you subtract your age from 100, and that’s the percentage of your investment money that should be in stocks; the rest should be in bonds and money market funds. Like any generalization, this one must be tailored to your specific situation, but it can be a useful starting point. 

If you do decide to put some of your money in stocks and bonds, invest it in funds, a type of investment that pools together the money of thousands of people. Here are some general rules: Avoid investing in funds with a load, which is the commission that some companies charge each time you put money into or take money out of a fund. They don’t perform any better on average than no-load funds, so there’s no point in paying extra for them. I also recommend that you consider only funds with low expenses, the annual fees charged by the fund that can take a huge bite out of your investment returns if you’re not careful. 

Although stock funds are considered somewhat riskier than bond funds (see below), they have also performed somewhat better over long periods of time. If you decide to invest in a stock fund, I like low-cost exchange-traded funds (ETFs) and stock index funds. (To find out exactly what these are, you’ll need to read Chapter 5.) 

Three companies that offer a large selection of low-cost ETFs and index funds are Charles Schwab (schwab.com), Fidelity (fidelity.com), and Vanguard (vanguard.com). You can start investing with as little as a dollar in each of these companies’ ETFs. (See p. 99 for more details.) 

Holding bonds as well as stocks will help to diversify your investments, reducing your overall risk. These companies also offer low-cost bond funds. While there are several different types of bond funds, a reasonable approach would be to choose a bond index fund that invests in government securities and highly rated corporations. 

To learn more about stocks, bonds, ETFs, index funds, and investing in general—you guessed it—you’ll have to read Chapter 5. 

6. Find out your credit score and improve it. 

A credit score is the number that tells lenders whether you’re a good risk or not. The score is based on information in your credit reports from the three major credit bureaus: Equifax, TransUnion, and Experian. These reports are made up of information about your bill-paying habits from your various lenders. You can get free reports from each of the bureaus from annualcreditreport.com. It’s smart to check your credit reports to make sure all the information included about you is accurate. 

You can think of your credit score as the GPA of your financial abilities, a numerical representation of how appealing you are to lenders. Unlike your GPA, however, your credit score is being recalculated all the time. If you want to qualify for a low-rate credit card, car loan, or home loan, rent an apartment, or get insurance, your credit score will matter. You can get a free version of your credit score at creditkarma.com. Before you apply for a loan, it may make sense to get your “official” FICO credit scores from all three bureaus (they often vary) at myFICO.com for about $60. Better yet, check and see if your bank or credit card company provides a FICO score for free (many do). See Chapter 3 for details. 

The better your credit score, the better the loan deals you’ll get. For that reason, it’s important to take steps to make sure your score is as good as it can be. The biggest component of your credit score is your track record for making on-time payments, followed by the amount of credit you’re using and the length of your credit history. One of the easiest, most foolproof ways to keep your score in good shape is to pay all your bills automatically online. That way, you’ll be much less likely to miss a payment. For more on your credit, including how to fix and prevent identity theft, see p. 57. 

7. Think hard before buying a home. 

At some point, you may feel it’s time to purchase a place of your own. The decision about whether to switch from renter to owner involves more than simply comparing your monthly rent to the mortgage payments you’d make as an owner. A range of financial factors should enter into your decision, including any tax breaks you may get from buying, the fees you’ll pay when you buy, and how long you plan to live in the new home. For a discussion of how to analyze your own situation, see Chapter 7. 

If you do decide you’re ready to buy, you’ll need to apply for a home loan, or a mortgage. One of the main obstacles for first-time homebuyers is coming up with the down payment required by the lender. You will likely need to have an amount equal to at least 10% (and ideally 20%) of the purchase price of the home. 

In addition, you will need a good credit score to qualify for the lowest rates. You will also have to prove that your salary is high enough—and your other outstanding debts are low enough—to make the monthly mortgage payments. 

To shop for the best mortgage deal, you’ll want to look at services like HSH and Zillow and use the Consumer Financial Protection Bureau’s “Buying a House” tool. It’s also a smart idea to check with your local bank or credit union—sometimes the best home loan deals are right in your own backyard. 

But what if you’re eager to buy and can’t come up with the full down payment or don’t have great credit? All is not lost. For several alternative loan options—as well as caveats to make sure you don’t get in over your head—see p. 159. 

If you don’t qualify for a mortgage (and still want to buy), don’t give up. Make it your goal to spend the next one to two years improving your credit score (pay those bills on time!) and saving up for a down payment. You’ll be surprised how quickly you can improve your credit record (and increase your savings) if you follow these simple steps. 

For more housing-related tips for renters as well as buyers, see Chapter 7. 

8. Get smart about income tax. 

Nobody likes paying taxes. One way to decrease the portion of your paycheck that goes to Uncle Sam is to take as many tax deductions as you’re eligible for. Deductions are specific expenses that the government allows you to subtract from your income before calculating the amount of tax you owe. 

You can take deductions in either of two distinct ways. By far the most common and easiest approach is to take the standard deduction, which is simply a fixed dollar amount ($16,100 for singles or $32,200 for couples in 2026) that you subtract from your income. Most taxpayers take the standard deduction, but in rare cases, depending on your circumstances, you may wind up owing less if you itemize your deductions instead. Itemizing means listing separately the specific items that are deductible under the tax laws and then subtracting their total cost from your income. 

If you do itemize, you’ll file a tax form called a 1040 and list your deductions on an attachment called Schedule A. Among the expenses you may be allowed to deduct are state and local income taxes (or state and local sales taxes) you’ve paid, charitable donations, housing costs like mortgage interest and property taxes, and some medical costs. (A list of deductions begins on p. 235.) 

Depending on your specifics, you may also qualify for valuable tax credits, which subtract money directly from the amount you owe the government. (For a list of tax credits to consider, including help with your health insurance premiums, see p. 240.) For other ways to cut your tax bill, see Chapter 9. 

When the time comes to submit your tax return to the IRS, if you earn less than $89,000 (in 2026), you can use irs.gov/freefile [editor's note:  to file online without any charge. Otherwise, try tax prep software from TurboTax, H&R Block, or TaxSlayer, which will cost at least $100 if you have a complicated return. Based on the answers to a few questions, this software will help you determine whether you’ll save money by itemizing, as well as identify all the deductions and credits available to you. 

If you’ve read this far—it wasn’t that bad, was it?—you’ve already done yourself some good. The next eight chapters go more in-depth on the above topics, while Chapter 10 offers information tailored to military service members, veterans, and their families. 

Excerpted from Get a Financial Life: Personal Finance in Your Twenties and Thirties, published by Simon & Schuster. Copyright © 1996, 2000, 2009, 2017, 2026 by Beth Kobliner. All rights reserved.

About the Author

Beth Kobliner is a personal finance commentator and journalist, and the author of the New York Times bestseller Get a Financial Life as well as a book for parents, Make Your Kid a Money Genius (Even If You’re Not). Beth is the founder of Get a Financial Life NYC, a financial literacy program working to integrate money lessons into the New York City public school curriculum, and was selected by President Obama to serve on the President’s Advisory Council on Financial Capability for Young Americans. A former staff writer at Money magazine, Beth has contributed to The New York Times and The Wall Street Journal and has appeared on CNN, MSNBC, Today, PBS NewsHour, Sesame Street, and NPR. For more, see BethKobliner.com and her Instagram @BKobliner.