Financial Tips for the College Graduate
Posted at by ifydcat on category Personal FinanceSo, you have recently graduated from college. This is a huge achievement and good reason to be proud. You may have a career already lined up, or maybe you are planning on laying low, waiting for the right offer to appear. In any case, it is important to consider the state of your finances and how to make your money last while you get your career going. Here are some tips that will help you to stay financially stable until you get that job you are dreaming of!
Many young people and their parents do not realize that children are eligible to remain on their parent’s health insurance plan until they reach the age of 26. Even if you have to contribute to the family plan, it will cost you considerably less than getting your own insurance that could cost you hundreds of dollars per month. Many young people live without health insurance because they cannot afford it. This is dangerous, as medical bills can put you in serious debt that may be hard to escape from.
If you are working, do your best to save some money out of each paycheck and put it in a savings account. Even if you start with a small deposit each month, you will soon have a small emergency fund to use in case of unexpected expenditures, such as new tires or medical bills. In addition, learning to save early in life will help you to develop good habits for the future.
If your job offers a retirement plan or 401-K plan, it is wise to contribute. When you are young, saving for the future may seem unnecessary. However, the future comes quickly, and it is vital that you be prepared to enjoy your retirement years. Many people have neglected to plan for retirement, and are now living solely on their social security. Don’t be one of these!
Keep one credit card, and pay it off each month. It is important to build good credit when you are young, and you can’t build credit without using credit. By using your credit card and paying it off monthly, you will begin to build a good credit history and avoid the accumulation of debt that will be difficult to pay off.
A great way to start a healthy financial life is to create a workable budget. Figure out what your total income is, and if your expenses total more than your income, you will need to make some adjustments. Look for any areas where you can save, such as groceries, frequent night-clubbing or expensive clothing. Keep your budget plan either written or on a computer spreadsheet, and study it regularly in order to make any changes when the need arises.
It can be exciting, as well as scary, to enter the real world and take responsibility for your life as well as your finances. If you are wise, and plan your personal finances around a sensible budget and savings plan, you will be on your way to financial responsibility. Remember, starting early is the best way to ensure a prosperous life, both now and for the future!