
It’s never too soon to implement good financial habits. But financial wellbeing is challenging for today’s newly minted college graduates, as most are already in debt.
According to CBS Moneywatch, the typical graduate has $4,100 in credit card debt and $22,000 in student loan debt.
Debt is something grads will want to control as they move from college into real life. There are plenty of people over the age of 50 who have little or no savings and piles of debt. A few good habits now can help today’s grads from ending up in that category.
The Real Story took a breeze through advice that’s readily available on the Internet and has compiled these tips:
Put a timeline on your job hunt.
No job is perfect, so take one that is a step in the right direction. It’s important to start earning and building a work history. You can always look for something better.
Create a budget and stick to it.
Based on your income, create a realistic budget. Be sure to chart expenses for housing, clothing, food (learn to cook; it’s cheaper and healthier), entertainment, insurance and other expenses. You may want to use online budgeting tools like Mint.com, Kiplinger.com or LearnVest.com.
Health care coverage is essential.
Talk with your parents and determine when your coverage on their plan ends. Be sure to sign up for new coverage with your employer or shop for a plan you can afford. This is important, as an unexpected medical expense could plunge you farther into debt.
Pay off your student loans as soon as possible.
If you have more than one loan, consider consolidating them to get a better interest rate. Talk to your banker or financial planner. Ask about student loan interest tax deductions.
Begin saving now.
Divert as much of your paycheck as possible to meet your savings goals. Be sure to have an emergency fund and park at least 10% of your income there until you have enough money to cover three months worth of expenses. Also, be sure to take advantage of your employer’s 401K plan. Retirement may seem like a long way off, but you will benefit in the long run.
Be disciplined about credit cards.
SuddenlyFrugal.com reports that a Dunn & Brandstreet study shows people spend 12 - 18% more when they pay with a credit card. Use cash or your debit card to keep those purchases under control. Don’t be tempted. If you can’t afford to pay cash, think long and hard about making the purchase.
moneywatch.bnet.com/economic-news/video/financial-tips-for-college-grads/433869/
www.mainstreet.com/article/career/students/gen-y/financial-tips-new-college-grads
www.mydollarplan.com/10-financial-tips-for-new-grads/
www.suddenlyfrugal.com/2010/05/5-financial-tips-for-college-grads/