Six Financial Tips That New Graduates Need To Hear

As a student, you get a bit of a pass for not spending or saving your money like many people have to in the “real world.” But once you cross that stage, the real world comes at you fast!

With student loans, rent, savings, and all of the spending you’re oh-so-tempted to do, it can be overwhelming figuring out how to manage your money fresh out of school. Here are some tips to hold onto as you navigate your first steps into the post-graduate financial world!

Tip #1: Start and Live By a Budget

While budgeting may seem like a task saved for people with entire households to maintain, creating a simple and easy-to-maintain budget establishes healthy spending habits now that will forever benefit you. If budgeting doesn’t come naturally to you...

Tip #2: Save, Save, Save, Save, Save!

It can seem tempting to hit the bars with old friends week after week and spend every penny you have leftover in your paycheck, but putting some of that spare change away can set you up for financial stability moving forward! Whether you choose a percentage, set amount, or just a minimum amount that you match or exceed based on the month, make sure you’re putting something aside for a rainy day.

Tip #3: Start Planning for Retirement Now (seriously!)

The best time to plan for your retirement is as soon as your professional career begins. Look into your employer’s benefits package and make sure that you’re making the most of the retirement savings options available. The more you plan now, the better off you’ll be when you reach retirement. It may seem a bit soon to start saving for a retirement that’s 40 years away, but you’ll thank yourself down the road.

Tip #4: Build up Your Credit

Your credit score should be a top priority in your young adulthood. A great credit score can get you lower rates on future loans and insurance, and can even help you get into that rental you have an eye on. You can build or restore your credit simply by making regular on-time payments on a credit card, phone bill, or your student loans. But credit can go downhill quickly, so tread lightly and always pay on time!

Tip #5: Spend Smart

Being a young adult is...expensive. Many people have to learn to manage their first rent, phone/utility bills, car payments, loan payments, and much more in just their first few years after graduating.

As you budget, keep an eye on variable costs and try to keep them under wraps. When purchasing a car, try buying used rather than brand new. There’s almost always a way save you some spare change and this is absolutely the time in your life to learn some tricks of the trade!

Tip #6: Realize It’s OK to Ask for Help

Don’t be scared to get a little nudge in the right direction. No one that has made it through their early twenties expects recent graduates to have it all together.

Use the resources around you to help you along the way! Follow blogs with helpful advice, consult financial professionals, and ask some adults you trust for advice. Planning for your financial future is wildly important, and there is a wealth of information out there to guide you.

There’s no clear-cut path to financial success, especially not one that can be clearly seen in a time as tumultuous as those first few years of young adulthood. But by laying the groundwork now, you can pave the way to financial freedom! And our team is here to help you navigate all the twists and turns along the way.