Ah, the feeling of no more classes and no more exams – just freedom! Those were my thoughts when I graduated college. Although I consider myself lucky because I was still living (cheaply!) at home, in hindsight, I wish someone would have advised me to prepare financially for my newfound independence. Here are some tips you can share with new college grads in your family:
1.Establish an emergency fund. As soon as you get a job, your number one priority should be to save $1,000 for a rainy day. This fund could cover car repairs, unexpected moving costs, and other "uh oh" expenses. And no, the emergency fund doesn't cover cocktails or new sandals (sorry!).
2.Give your first job your all. The transition from college life to your first real job life can be a tough one and you might not love your job (or your salary) right from the start. Try to stick it out for at least a year to really make sure you're giving it a good shot and have a chance to hopefully save some money, too. If you still aren't happy, then you can move on with a good recommendation without having burned any bridges.
3.Focus on building good credit. You might have gotten a six-month grace period after graduation on your student loan. But remember that "no payment due" is not the same as "don't make payments." Maintaining a good payment record will help to improve your credit score. And don't be tempted to open lots of credit card accounts – stick to just one and try to pay it off every month.
4.Keep your expenses low. Even if you have a good post-graduation income (but especially if you don't!), it's still a good idea to keep budgeting and spending like a student. Austerity now will help you find abundance later on in life.
5.Pass on fancy luxuries, like cars. I love a sweet ride as much as anyone. But that's not a valid reason to blow your budget on a crazy car payment or the potential extra maintenance expenses, like a higher insurance premium.
6.Start saving for retirement. There's no better time than right now to start saving for retirement. Time is on your side. Plan to match your employer's contributions to take advantage of your brand spanking new 401(k) or 403(b).
7.Find joy in the kitchen. Hear me out on this one. Learning to cook was one of the best skills I ever acquired. Being able to cook your own delicious meals will save you lots of money on take-out and restaurant bills!
Yoly Mason, a blogger living in Orlando, Florida, wants to live in a world where Latinas can enjoy an abundant life with a small budget and where being in debt is as out of style as the rotary phone.
