So for many, but not all, graduating students this year comes graduation gifts. Everything from the new wallet or tie, to gift cards, bear hugs, kisses, and cold hard cash. The big question that comes into play is, what do you do with this money now? Whether it’s $50, $100, $1,000 or more. Is it best to treat yourself to a vacation, start paying off those student loans before interest accrues or do something else with it?
In today’s blog post we’d like to highlight a new post “How I Invest My Money” that comes from one of our favorite blogs, the Get Rich Slowly blog.
In the post, J.D. talks about the building blocks to savings (not just earning more money, but strategically saving and spending as well).
The main point discussed is investing. For many students, this is probably as foreign as things can get get. But simply put… if you start working and your work gives you a 401(k) with matching, do it! This is essentially free money for your retirement. A Roth IRA is also a great idea, and then with any left over money you may have, check out regular, taxable investment accounts or online savings accounts (which generally have a higher APY than the local banks).
Now what about vacations? You’ve gone through years of schooling and deserve a break! If this is part of your agenda, then by all means consider investing in yourself and using this money towards a vacation. Our best word of advice is when planning vacations, consider traveling with a friend. This generally not only lowers your expenses but adds security to your trip should you travel to a foreign land.
Best of luck with whatever you decide to do with your money!