You’ve made it through college. That’s a great thing and you want to celebrate. You should celebrate before the realisation hits that you’re now no longer a student and need to find a job. It can take time to find a job in the current market, but that doesn’t mean you need to suffer financially. Here are five tips to help recent graduates handle their finances.
Avoid Deferring Your Student Loans
Many students look into loan deferment. It seems like the perfect idea so you don’t have to pay the money back right away. This is not something that you want to do. It will lead to more interest, and you can lose the benefits of having a student loan in the first place. Unless you are really struggling, you should keep all your student loans as they currently are right now and pay them off bit by bit.
Move Back Home
It seems like a step backwards, but moving back in with your parents could be the best decision you have ever made. Think about the money that you will save right now. Once you get a job, you can save up for your own home and buy it outright. If you really want to get out, you will at least then be able to afford a comfortable rent. If you can’t move back home, look for a small, cheap place right now and work your way up.
Ask Someone to Live With You
You may think that living alone is the life, but you will have to pay the whole rent yourself. Then there are the bills and other costs of living away from your parents. If you really must live in a rented place, talk to a friend about moving in with you. Agreements will need to be made to split the living costs and cleaning, but it will be much better for your financial situation right now.
Organise Your Retirement Pot Right Now
Don’t wait until you are in a job to start saving for retirement. The sooner you start, the better it will be for you. You have more time to save money, and you could end up with much more than you ever would if you waited for a few years. Live as frugally as possible so you can put more money in your retirement pot. You never know; you could end up retiring early and living very comfortably.
Work on Your Debt
As well as saving for retirement, you want to work on your debt. This is more than just your student loans. You may have other loans and credit card bills. Make sure you clear as much of your debt as possible each month. It will mean living frugally right now, but you will find you pay less interest, and you will be able to spend much more on the things that you want in the future. You can also be removed from the statistics of people in debt!
The big wide world is out there for you and it is time to grasp it with both hands. That will be much easier for you by making great financial decisions. Consider the five tips above as soon as you graduate.
I'm Alexandria Ingham, and am a work at home mommy and full-time freelance writer. Writing has always been a passion from a young age, but it was only in 2009 that I decided to use it to make money online. Since then, I've managed to make a career out of it and don't regret it. While history and weight loss are two of my favorite topics, I love writing about absolutely anything and even have fictional pieces in the works.