Budgeting for the short-term. Research suggests that creating an annual budget instead of a monthly one works best, largely because we feel less confident in our annual estimates, so we tend to add more cushioning for unexpected expenses. In one study, college students underestimated their monthly expenses by 40 percent while overestimating their annual expenses by 3 percent.
By Kimberly Palmer This list is based on the new book Generation Earn: The Young Professional's Guide to Spending, Investing, and Giving Back , by U.S. News senior editor Kimberly Palmer.