<prompt> Human: I came from a working class family. Im also the first one to graduate from college. Growing up, most of the family fights centered around money. I remember watching from the stairs as my mother cut up the credit cards with tears in her eyes. I dont want to go down that road. Now Ive been thinking a lot about my personal finances lately thanks to Reddit. Although I always found the finance world fascinating, and held a subscription to the economist for a few years, it always seemed like finance was something the money-minded or big-boys did. But since Ive been following rpersonalfinance I know the sooner I develop a financial plan the better. It might have taken a little longer - but thanks to an employee education discount and transferring from community college; I managed to graduate from a respectable state school without any student loans. After graduation I took the first job offer I could find. Working as a secretary at a construction firm brings home about 30K a year. Although it might not sound like much to most of you - its the most Ive ever made. Ive been working there for about 5 months. I have a 2,500 rainy-day fund in the bank. There are five years between me and the big 3 - 0. I want to build up passive income and start my own business eventually. Right now I just have two main concerns: My biggest problem at the moment is my complete and total lack of credit. Ive always been terrified of debt so I never signed up for a credit card. Everything has been paid for in cash. My phone is under a family plan still. The bills have always been in my roommates name. When I was 21 it seemed like everyone was throwing credit applications at me. Now that Im 25 and in a much better position financially - no one will give me a credit card . I just dont get it! Help?? I was hoping some more knowledgable members could offer tips on how to start an investment plan. Do I even make enough money to start investing? Some blogs advise high-risk strategies for twenty-somethings others point to long-term low-risk early retirement strategies. Isnt the college debt bubble coming soon anyway, so should I stay away from the market? Or should I save up more and let it just sit in a savings account? Any advice is really appreciated and thanks to everyone thats read this far. Im just relaxing and getting ready for work tomorrow morning. Ill check back periodically. Have a nice evening! Assistant: no one will give me a credit cardHave you looked into secured credit cards? Or talk to where ever you do your banking.Does your company offer a 401k with matching? If so, you want to contribute enough to get the match. This is free money. After that, you want a Roth IRA.Your rainy-day fund, or emergency fund, should be 3-6 months of expenses. If you dont have that much, after the 401k, build this up.Human: I believe my company does offer a 401k, but what would happen if I need the money in an emergency or am laid off?So the rainy-day fund includes the amount of money in your 401k? Where would I get a Roth IRA? Sorry for all the questions. Assistant: No, your emergency fund is separate money that you set aside in a savings account. That is money you use if you lose your job. Which is why it is 3-6 months of expenses. It gives you time to find a new job, without having to accept the first thing that comes along. I am assuming this is what you mean by your rainy day fund.When you leave your company, you can roll your 401k over to a Traditional IRA. The money you put in is always your money. If your company matches your contributions, they may have a vesting schedule. That means that all of the money they put in may not be yours when you leave the company. Say their contributions vest 20 for each year of service. That means you would have to stay there 5 years to take all of the companys contributions.But if the company matches, that is free money. Its like the company saying, hey youve saved 100, good job here is another 5 to go with it.but what would happen if I need the moneyThis is why you have an emergency fund. Once its in the 401k, you really dont want to take it out until retirement. You could take a loan from it, but not advisable. You could also take a withdraw from it, before retirement, but you will pay taxes on it, plus a 10 penalty.A Roth IRA you would open on your own, at some place like Vanguard. Once the money is in the Roth IRA, you then have to invest it in funds. In this you could invest up to 5k for 2012, 5.5k for 2013.Human: First thing tomorrow morning Im going to find out if my company matches 401Ks. I regret not taking this financial stuff more seriously sooner.  <response>: Better late than never. Dont stress about the past, just look forward to a carefully invested for future. 