Recently graduated college? Before you come face to face with the real world and your first job, be sure you review the following important money tips.
1. Keep your debt limited.
When you’re starting out in your first job, you will quickly find yourself probably making about five times what you were making from your part-time college gig. That account balance can look quite enticing. Try your best to not let debt grow. Tackling debt can take years, and you don’t want to add to it.
2. Start a savings account/emergency fund.
When you’re young, you tend to push things off because you think you’ll have plenty of time. When it comes to saving, the earlier you begin, the more you’ll appreciate it later. If you save $100 a month, during the first 5 years after college, you will have created a $6,000 fund that could come in handy when you need to make lemonade out of the lemons that life will inevitably throw at you from time to time.
3. Stick to a budget.
This may be one of the harder tips to stick with, especially when you have more money than you’ve ever had in your life. Buying every meal from your favorite restaurants is tempting, and the sooner you curb that habit the better. By budgeting, you can see how you’re really spending your money. Try not to look at it as restricting your spending, but rather a guide to help you spend confidently.
4. Don’t forget about retirement.
Retirement seems like it’s 40 years away (and maybe it is), but it’ll sneak up on you. Putting your money in an IRA early is one of the best decisions you can make. There’s a little thing called compound interest that wants to be your best friend. Read about it and you’ll be happier than a kid in a candy store.
Article Source: John Pettit for CUInsight.com