Fundamentals of Financial Fortitude

The principle drilled into the heads of college students in Finance classes is this: Pay Yourself First. It's simple, it's direct, and it... means what, exactly?

The concept of paying yourself first revolves around the attitude of gaining assets for what you need, rather than what you want. . I cannot stress enough how important this concept is, as saving for your future self spares you from spending on your current, financially flirtatious self. You really don't need that latte today, do you? Not when it could translate into saving 3 bucks a day, or 90 bucks a month. If you look at it in the long-term, that 90 bucks a month, when stowed away in an aggressive long-term investment, becomes over 12 grand in 25 years.

So how do you start? A great way to do this is opening up a 401k, if your employer offers it. If you're a young buck, choose an aggressive portfolio - this will usually get you about a 10% return compounded quarterly. That's how that snub on a cup of Joe turns into a nice mass of dough.

I started a 401k when I landed my first restaurant job, and even though I only worked part time while attending school (and paying hefty college costs), I squirreled away a nice sum in just a couple of years that will help save me when Social Security becomes a little less, well, secure.

If you don't have that option, the good old traditional IRA or Roth IRA are great options. It works similarly to a 401k in that it typically invests your assets (aka cash) into a mutual fund kind of account. You will be investing in a group of various entities - from foreign tech stock to domestic bonds.

Even if you started a 401k with an employer and decide to change careers, you can roll it out into an IRA. That's what I did; hassle free, with the help of a Financial Advisor. Now I watch my little fortune grow just as well as it did while under the management of my old company's retirement fund.

Saving is not all that matters in the realm of financial fortitude. You've got to protect yourself. Make sure you know whom you are investing with, and what kind of strategies they are implementing for you. A good way to do this is to hire a professional Financial Planner to guide you in this process.

You've also got to consider other aspects that affect your financial success, like your health. You can't work if you're sick, and you certainly won't be able to manage the same way if you become (gods forbid) disabled. A good health plan is essential, as we all know in this country, but you should also keep in mind checking into a life insurance policy as well as disability insurance.

If you get struck with an illness that you'd never expect - the way all life-changing illness goes - you won't be able to take care of your responsibilities and family quite the same way. You might be young and healthy now, but if something were to happen, would you have a few thousand socked away to cover the rising cost of medical attention?

Ensure your safety with just a modest life insurance plan to start - some offer great plans starting at just a couple hundred a year (less than a latte a day!). I opened up such a policy for just over 200 bucks, which will pay out to my family in the event of catastrophe.

Disability coverage will also come in handy in the rare and unfortunate event of an accident, may make up for some of your lost salary, and certainly covers necessary medical bills that you would have never dreamed of having to fork out your life savings for.

Not only you will benefit, but your loved ones will thank you if you've secured what you've worked so hard to save for.

This is just the start to your financial awareness, security, and success. Remember the central principle of Paying Yourself First, and you will create a cushion for yourself when Social Security slip slides into the oblivion of political rhetoric, as well as prepare a foundation of refuge in the event of disaster. If a college kid can do it, so can you.