After college, your financial life is your own responsibility. You may be handling the student loans that you have amassed, trying to budget for a new apartment, and handle car payments all while adjusting to life after college. There are certain things all new college grads should do to set the foundation of financial health.
Start Saving Immediately
The time to start putting money into a 401k or other long term savings account is immediately after graduation. Any monetary gifts should be used to start these accounts off properly. There is no need to put all of your money towards paying off student loans. If you start saving early then you’ll have more money when you’re ready to retire.
Give yourself a head start on retirement by using free online retirement calculators to determine how much you will need to set aside per month to reach your retirement goal.
Save as though your bank account is a bill that you have to pay. Set aside a monthly minimum and pay yourself first. Getting into this habit will make it very easy to save no matter how tight money gets in the future.
Budget Your Money
Budget your expenses and learn to invest well by buying in bulk, cooking at home, and conserving energy and gas every chance you get. Set up a specific budget and learn to stick to it no matter what.
Plan for the Future
Sit down and create financial goals for yourself - how much you plan to have saved by age 30, age 35, etc. Make your goals realistic, but strive to beat them. Writing your goals down will provide you with a concrete plan to follow. This is the best way to make sure you have enough amount of money as you go through life.
Become Familiar with Taxes
If you have student loans, take the time to do research on all tax relief that you may be entitled to. There is plenty of relief for those with student debt. After you’ve saved money on taxes, place all your savings in your savings account.
Shop Around
Before you open any accounts with a bank, look around town for the bank with the best deals. One bank might offer a better interest rate for savings than another and some banks will provide unique services you can benefit from. If you do the leg work now, you’ll reap better rewards later.
The most important thing to do after college is to be conscious of what you are doing with your money. You need to make a financial plan for where you want to be at different points in your life and stick to that plan.
