I’m sure that all of us have a common goal – we’d all like to be rich (without working too hard for it). Well, it’s easy actually. All you have to do is go through the following steps:

1. Get the house in order
2. Calculate and track expenses
3. Cut down expenses in some areas
4. Divert saved money into savings
5. Repeat

Doesn’t it sound easy? Believe me, like going on a diet, only the first couple of times, its hard – after that it becomes easier. In this post, let’s take a closer look at step #1 – Get the house in order before you do anything else. Here’s what you do:

1. Keep your documents in order
2. Apply for your Social Security Number
3. Open a checking account with your local bank
4. Find a place to stay
5. Set up direct deposit of your salary into your bank account
6. Set up your 401K account with your employer and add your spouse as beneficiary

Get your employment documents in order: This is a crucial step that has cost me dearly which is why I put it first. All you need to do is to set up a system of three binders. Use the first binder to store all your employment related documents and the second to store recurring documents such as pay-stubs and other statements. Finally, in the third binder, store all documents that you brought with you when you first came to the US (such as educational degrees, experience certificates and so on). In the long run, these three binders will serve you handsomely and avoid those “where did I put that document?” situations.

Apply for your Social Security Number: This is also a crucial step without which you won’t be able to do much. An SSN is like your identity in numerical form in the US. You need it to get housing, credit cards, loans etc. Go to the local SSN office immediately and apply for one. If you have arrived in the US recently, you might have a couple of weeks wait before you get your SSN card. Make sure you provide a valid mail address where you can receive it (such as a friend’s) and be sure to get a document from the SSN office indicating that you have applied for an SSN and the number is awaited. Based on your visa type, your spouse may be eligible for an ITIN or an SSN. Check this out at the Social Security Website by searching on those two terms.

Open a checking account with your local bank: This is an easy step. All you need to do is to visit the banks nearest to you and inquire about their checking accounts. You could do this online as well. Look for checking accounts that are free to open and use, have no minimum deposit, have free check printing facilities (if possible), have lots of ATM’s in your area. You can find all this information online. For example in the NY area, Citibank® EZ Checking or Chase Checking are options that give free checking accounts if you direct deposit your salary with them. Similarly, Wells Fargo offers a Basic Checking account for those in the West Coast.

Find a place to stay: This sounds easy, but isn’t. You will need to factor in various parameters such as your spouse’s preferences, the commute time, ease of commuting, the cost and so on. Once you find the right balance, check with the Rental office if they will lease without you having an SSN. Most places will do it if you prove that you have applied for one. Some places will also charge you a higher initial deposit because your SSN is new and you have no established credit history.

Set up direct deposit of your salary into your bank account: This step may need you to check with your payroll department. Some companies allow you to do this online through their intranet site while others need a Void check from your account to initiate this. Either way, the Payroll department should help you out.

Set up your 401K account with your employer and add your spouse as beneficiary: This is something that your HR department will help you with. Again, this is usually done online through an intranet site or through paper forms. This is a crucial step because it determines who gets your retirement funds should something suddenly happen to you.

Once you are through with the above, you have taken the first big step to getting rich – you now have your house in order. In the next post, we’ll take a look at the next step – Calculating and Tracking Expenses with an example.

Please take note that I am not affiliated with Citibank, Chase or Wells Fargo in any way and the above instances were only used as examples.

Citibank® EZ Checking can be reached here
Chase Checking can be reached here
Wells Fargo can be reached here