Tuesday, 22 Oct 2019

Finance Tips for Fresh Grads

Graduating from college is one of the most awaited parts of life wherein young people hope to be competent enough to pass through towards the real world. However, as newbies to the real world, you are either unemployed or stuck in a part-time job with a low salary.

Post-graduation life won’t be as promising as you expected it to be as you have lots of expectations such as landing a good job, having a high salary with your degree, moving into a new home to be independent, going to different faraway places, and buying the things you have always wanted. Spare yourself from heartbreaking disappointments with these pieces of advice:

Create a Budget

Once you land a job, do not spend all your salary immediately. Remember that you should survive until next payday. Occasionally rewarding yourself with something is fine, but spend below your means to prevent future financial problems. When you budget, clearly list down your expenses and balance in with your income while making sure that there is still an allowance for rainy days.

Set your Goals

You can start with four main goals which are repaying debt, starting an emergency fund, saving for your retirement, and financing a major expense such as a dream vacation or car. Prioritizing these goals will be vital in the long run. Do not be afraid to add more goals, but do not lose focus on the major ones. It might also help to talk to a financial planner if you find it hard to prioritize.

Repaying Student Loans

Like other fresh graduates, you are likely to have an outstanding student loan to pay. Remember that what you do now with your credit rating might follow you around till you are in your 40’s.

Take care of your credit rating by paying your loans on time, staying away from the temptations of the credit cards, and monitor your credit reports. Do not ignore your student loans because it might cause you your credit standing for the rest of your life. Be faithful when repaying because student loans with a good record of repayment can actually be forgiven after 10 years. If you get a hard time repaying, federal student loans offer options that might help you.

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