Graduating from college and venturing out into the “real world” is a huge yet exciting step for countless young adults, but many of them aren’t prepared for what comes next. A single misstep is all it takes for things to start crumbling apart, but Maggi Tax is here to give you the tools you need to prevent that from happening. Read on for useful tips when it comes to managing your finances as a recent college grad!
Painting The Hardships Of A Recent Graduate
Picture a recent college graduate landing their dream job that makes use of their hard-earned degree. Moving out of the parent’s house into an apartment, getting take-out every single night, and simply going with the flow. However, rising inflation and low wages barely make it possible to stay afloat while avoiding making that awkward phone call announcing having to come back home. If this sounds like you, then you need to reconsider your finances. Money doesn’t have to feel tight when you know how to manage it properly.
Ways To Prepare Your Finances After Graduation:
Ideally, recent grads should figure out their financial plan long before they graduate (if possible). At the very least, knowing what to do as soon as you land a job can help you keep your head well above water for comfortable living. Take a look at these helpful tips for managing your finances:
1. Find Your Budget Sooner Than Later
It’s easy to get caught up in the excitement of being independent and overspending with your newfound income. This is how the financial decline usually starts, and hitting rock bottom can happen over the course of a few months or even overnight. Find your budget by sorting out your needs and wants and setting idealistic limits for both. It also always helps to have an emergency fund set aside.
2. Start Saving For Retirement (No, It’s Not Too Early)
You might feel like you have all the time in the world to begin retirement planning, but every day you spend not having an account in place is another dollar (or more) that you’re missing out on. When done right, retirement funds are meant to snowball by using the amount that you put in and investing it where it will grow. This means that the earlier you start saving, the more you could receive when it comes time to collect.
3. Protect Your Credit At All Cost
When recent grads overspend because they haven’t set a financial budget, that’s usually when they resort to signing up for credit cards. Opening a credit line can help your credit when used responsibly, but it’s important to tread carefully. Damaging your credit with a missed payment or too many hard inquiries can make it difficult to secure a loan when you want to start looking for a car or a house.
4. Learn From Your Mistakes
Let’s be realistic. Everyone makes mistakes, especially those who are new to managing finances. The important thing is to not be too hard on yourself when things don’t go as planned. We’re all learning, so take it as an invaluable experience and use it to be better next time!
Get Expert Advice From Financial Advisors Near You!
Are you a recent college grad in need of a solid financial plan? Let Maggi Tax help you find a budget that works best for you! We can assist you with budgeting, taxes, and retirement funds so you can be set in all aspects of your new after-college journey! Call (727) 799-1701 to schedule your complimentary consultation.