Don’t buy something thinking you can pay it off in the future. Spending more than you can afford is a top reason people get into financial trouble, and a lot of times, it’s for silly things like taking an expensive vacation or buying a house that is too big for them. One of the most important things to understand about your finances is that you need to spend within the confines of the money you have. You don’t want to get into a habit of carrying an expensive credit card balance that could hurt you. To best use credit cards, you can use them to pay for basic necessities and then pay the cards off each month. Both of these things can be very beneficial to new graduates as you probably don’t have a lot of credit history, and rewards are always nice. Many people delay paying off student loans and have a large debt hanging around for years.Ĭredit cards can help you do a couple of things: build your credit score and earn rewards. Sacrificing some luxuries in your budget to pay down your student loan debt will put you in a better long-term position. If you took out student loans to go to college, it’s essential to understand how much you owe and how quickly you can repay them. There is nothing wrong with living with people who love you to save as much money as possible.
Either renting out a room in their house or just living with them can help you save a lot of money you can put away for a potential down payment on your own future home. This might not be what you want to hear, but you could save a lot of money working remotely or in the town where your parents live. It’s never too early to start saving for your retirement as more and more people are reaching that age without enough to sustain them through their retirement.
YOU NEED A BUDGET COLLEGE FREE
Your employer might have a retirement plan program, such as a 401(k) with a match.īy not investing, you could be missing out on free dollars to go toward your retirement. The earlier you invest, the better off you’ll be later on. Saving 3-6 months’ worth of expenses can help you feel comfortable being prepared to face anything coming your way. If, in the future, you get laid off or lose your job unexpectedly, then you’ll want some money to fall back on to help you get through. When you’re young, it feels like you’re invincible, to a degree, but no one is immune to hard times. Allowing you to create budgets and savings strategies, track spending habits, set financial goals, monitor income and bills, and more, Money Manager is the best way to truly manage your finances.Ĭreating an emergency fund should be one of your top priorities with your new financial situation. The final 20% of your money can be spent on savings and debt, like if you have any student loans.Īn easy way to keep track of your finances is with Money Manager, available to all DECU members via Digital Banking at no charge. Then the next 30% of your salary can go to something you want, such as that morning latte or a vacation. This is where you spend 50% of your money on things you must pay for, such as monthly bills or rent. You can start with a simple budget, such as the 50/30/20 approach. With your new job, you’re now responsible for all your bills and making sure you put money aside for savings. A close second is not having your budget documented where you can measure how you’re performing against it each month. One of the biggest mistakes you can make is not living by a budget.
YOU NEED A BUDGET COLLEGE HOW TO
One of the hardest things many new graduates struggle with is figuring out how to budget their money. Not to mention, there are so many new responsibilities that come, including finding and paying for a place to live on your own or contributing to a 401(k) plan for the first time. For new college graduates, it can be tough emotionally and financially to transition into a full-time career.
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