Post- graduation opens up a world of excitement. This means no more 8am classes and certainly no more late night cramming for midterms and finals. More importantly, it also means that you have a number of responsibilities piling up the moment you leave college. Hopefully, you’ll have a job lined up and more income than you’ve ever had in your life. You may also receive gifts in the form of money from friends and family. One sure way to make sure you can be successful after graduation is to be responsible with your finances. Here are some tips to help you manage your money after college until you’re making the big bucks.
Don’t spend your money just because you have it.
Although you may be earning more than you have ever before, this amount of income is relatively small. Spending it just to spend it can make it disappear before you can say blueberry pie (as Bruce Willis would say). Realize that just because you’ve earned this money doesn’t mean all of it can be used for recreation.
“Would this make sense if I was still a college student?”
Like most colleges students, you probably didn’t have much money to blow. I know in college I ate Cup Noodles and drank Albertson’s Vodka, sometimes both at the same time. Those were some dark times. Though you should not live like the way I did anymore, you should try and maintain as close to that lifestyle for as long as you can. It also may be wise to look into opening a Roth IRA and setting aside some money from every paycheck for it. These will work wonders on paying back college debt and saving for a mortgage.
Don’t buy the brand-new luxury car you’ve been dreaming of.
Let it stay in your dreams and motivate you to work towards it. One of the worst purchases you can make as a recent college grad is to buy a brand-new car. Consider used cars that will cost less and if you even need one at all. Many metro areas offer reliable public transportation, car share programs, and bike access.
Save money and start paying off debts as soon as possible.
Loan payments can be merciless with their interest charges. Start paying them off as soon as you can so you don’t lose out to those charges. If you had the luxury of never taking out loans, saving money can still prove to be valuable when you come across a need for it. I suggest setting aside money every month for an emergency fund.
Have some tips of your own? Share them below!