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When you look at your current situation, do you think that you're doing better or worse than the average person your age? While the Lake Wobegon Effect predicts that you probably think you're doing much better than anyone else, we actually have statistics to show how you are doing.

MSN released a report about the debt, income, and wealth of people in their 20s, with some very interesting results. As we often ask on the Lending Club blog, how do you measure up?

According to the study, 47% of people in their 20s carry credit card debt. Do you have debt? Only 32% have a 401(k) or a Roth IRA. Not having a retirement account when they are young might really hurt them when they are about to retire.

When looking at the numbers, the financial lives of 20-29 year-olds don't seem all that rosy. 25% of them have a negative net worth and their median income is less than $30,000, even with a large percentage having a spouse and children. If you don't follow good financial practices when you are young, the bad results can carry through into your 30s, 40s, and later.

The MSN study also offers some great advice about how to act financially in your 20s. For example, the study recommends that you live cheaply for as long as possible. Before marriage and having a family, it is much easier to live frugally. Your best shot at saving money is in your 20s.

Don't waste the best years of your life by setting yourself up to be broke. Live frugally, invest your money, and have some fun. For investing, try stocks, bonds, mutual funds and P2P lending. Your 50-year-old self will thank you for it.

As I mentioned on a previous post on the Lending Club blog, regular review of your credit report is critical because your credit report data will affect your applications for mortgages, car financing, credit lines, and p2p loans on Lending Club. When reviewing your report, it's important to keep the following in mind:

You Actually Have Three Credit Reports
Many people make the mistake of thinking that each of the three major credit reporting agencies, Experian, TransUnion and Equifax, all contain identical records. While their records do generally contain much of the same information, it's important to thoroughly check all three reports, since there are often some discrepancies. By ensuring accurate information is contained in all of the reports, you maximize your credit score potential.

Fixing One Report Doesn't Fix Them All
When you do find errors in your credit report, remember to have that information corrected in every report that contains the error. Too many people think that by fixing it in one place, corrected information will eventually make its way to all three.

Paying Off Bad Items Doesn't Remove Them From Your Report
While the three credit reporting companies are all generally helpful in correcting inaccurate information, they won't remove true information from your report. So if your report contains an account with late payment history, or a similar negative characteristic, paying off or closing the account may bring it back into good standing, but it won't remove it from your report. According to The Truth About Credit Cards' website paid/closed accounts will remain on your credit report for 10 years after they are closed.

It's important to take all of these points into account when monitoring your credit report, but they're just a starting point. You need to be active in staying on top of your credit. Review your report at least once a year and be sure to correct any errors in all places where they occur. Only through your continual review and action will you earn all of the credit that you deserve.

As a regular contributor to the Lending Club blog, I read a lot of other financial columns and websites looking for stories to cover. As a result, many topics, outside of Lending Club’s core competence of providing P2P loans, are covered. Over at Investor Guide, I recently came across a list of questions to ask yourself to see if the time has come for a financial checkup.

The idea is that just like our bodies (or our cars) need routine maintenance, so too may our finances. Depending on your answers, you may want to consider talking to a qualified professional such as a financial planner. Here are the questions:

• Do you have financial goals? If so, are they in writing and do they include deadlines?

• Is your debt under control? Do you pay off your credit cards each month?

• Have you reviewed your investment portfolio recently? Are you comfortable with the level of risk associated with your current investments?

• Are you satisfied with the rate of return that your investments are generating?

• Have you started a retirement fund yet? If so, will your current rate of savings provide an adequate fund to meet your future retirement needs?

• Have you reviewed your tax situation recently to see if there are ways to reduce your tax liability?

• Have you started a savings program to meet the cost requirements of your children's college education? If so, will your current savings rate be adequate given the effects of inflation and rising tuition costs?

• Have you reviewed your life insurance coverage recently? In the event of an untimely death, will your current policies provide adequately for your spouse and/or children?

How did those questions make you feel? If you felt a little uncomfortable thinking about one or more of them, then you may want to discuss your finances with someone.

The Internet also provides a lot of useful financial information. If you do turn to the Internet for advice and strategies, consider reviewing those ideas with a professional before taking action. With the diversity of readers out there, it’s unlikely that any one piece of advice on the Internet will fit your situation perfectly. Even though you might self-diagnose yourself based on medical information you found on the Internet, you would clearly be better off by consulting with your doctor. The same is often true with your finances.

Depending on which of these questions caused the most concerns, you may want to meet with a tax advisor, insurance agent, investment broker, and/or financial planner.

Do you need any proof that today is the day you should invest? I have an article for you that might just inspire you to invest today.

The Motley Fool wrote an article about how the first million is the toughest. Because of the miracle of compound interest, the time it takes to get your first million can be over 5 times as long as going from $1 million to $2 million. Why? Well, compound interest works by gaining interest off your previous returns. This means that, if your money takes 7 years to double, going from a monthly investment of $500 will take a little under 30 years, while going from $1 million to $2 million will take less than 7. The earlier you start, the earlier your money will hit that magic $1 million mark.

Honestly, if this knowledge doesn't get you motivated, nothing will. The day you start investing is the day that your chances of being wealthy skyrocket. You need to have money in the bank in order to make money. Warren Buffett likes to invest in solid companies that will produce good long-term results. Warren Buffett is the world's third richest man, so I think he knows what he is talking about.

As you accumulate more and more money, your returns become almost exponential. The money you invest becomes an interest generator.

Invest today, whether in stocks, bonds, mutual funds or P2P loans on Lending Club. Your future self will thank you.

We all know that the cost of college is going up, but it seems like everything is more expensive then it used to be. A recent report shows that college costs are rising faster then the costs of other goods and services.

The data for this post comes from the College Board’s report Trends in College Pricing 2007

Here are some of the increases in average tuition and fees reported:

• Two-Year Public Colleges up 4.2% ($95) from a year ago

• Four-Year Public Universities up 6.6% ($381) from a year ago

• Four-Year Public Universities up 6.3% ($1,404) from a year ago

The US Bureau of Labor Statistic’s inflation calculator shows inflation at around 3.4% for the same period. Many students do benefit from financial aid and grants which reduce the actual cost paid, but even that cost is increasing at similar rates.

Net costs for tuition and fees increased as follows:

• Two-Year Public Colleges up 6.7% ($20) from a year ago

• Four-Year Public Universities up 6.6% ($160) from a year ago

• Four-Year Public Universities up 4.6% ($630) from a year ago

With costs rising faster than inflation, the relative cost of college is going up. College savings plans, financial aid, and government loans may not be enough if you don’t start planning early. If you do have some time before your college expenses will begin, I highly recommend looking into a 529 College Savings Plan. If you have a more immediate need, then a P2P loan from Lending Club may be a more cost-effective solution than looking to the private sector for a student loan.