The Personal Finance Tips Every College Graduate Needs

For years I lived on a college budget, Find meals where possible, buy gas on a flight-by-flight basis, and never think once of the term “401(K).“ Getting that first salary from your employer will feel like more money than you know what to do with it. but bBefore you start daydreaming about luxury cars and beach vacations, make sure you take a long timeDuck straight with these ten financial tips.

Know your value in salary negotiations

Negotiating your first salary is tough, but you are not powerless. Use the resources at your disposal, Like your college career center and more New college graduates in your field, to assess whether your offer represents sufficient market value. Otherwise, you definitely do not need to accept the first offer that comes with you.

Be realistic about going out

After experiencing four years of freedom, you probably don’t want to go back to live with your parents. But if this is an option, it is worth considering, especially if you are among those That’s a big burden religion. Saving on monthly rent payments allows you to save money and Pay more loans Amazing speed. Next to, You’ll want to have a nest egg before you sign a lease.

Match your company’s 401(k) contribution

When you get a job, you will have to decide what percentage of your salary you want to contribute to your business 401(k) retirement plan. The employer is likely to offer to match however much you contribute a certain percentage; You want to make sure that you contribute at least that amount. If they give up to 3%, contribute At least 3%. Doing nothing else means leaving money on the table, and the interest on that money will accumulate significantly over time to prepare you for retirement.

Open Roth IRA

I know all of these terms sound intimidating and confusing, but they are not. dung Irish Republican Army It is just an account to which you can contribute up to $6000 annually investment And you don’t have to pay taxes on the gains when you withdraw them at retirement. sThe full amount is $6000 each year if you canInvesting at low and long riskinvestments for.

Do due diligence regarding health insurance

If it’s an option for you, stick with your parents’ opinion Health insurance for as long as possible. If not, really think What plans does the right employer offer you? For example, you might not need the more expensive option if you don’t expect to get a low discount. And if you don’t know what that means, This is a good place to start.

Building credit score

Your credit score is important because, ideally, you will one day make a purchase where you will need to take out a loan. Building good credit is not difficult, it can take some time. You can build your credit score By making payments on time and with low limits, secured credit card, pay your utilities, and even report your rent (if you have a rent payment). started early, And thank yourself later.

Set a budget

It’s scary at first, but it’s important to know how much money you’re spending and on what. much like 50/30/20 . rule: s50% depends on needs (Like rent, groceries, and minimum loan payments)spend 30% on splurge (Like trips, eating out, concert tickets)spending 20% ​​on savings and extra payments on high-interest debt.

Understand your student loans

Once YouGraduated, you usually have sixOne month grace period before you need to start paying off these student loans. Sit down and find out how much you have in federal versus private loans, compare interest rates, and make an action plan for how you can best pay off those loans.

buying a car

Unfortunately, due to inflationNow is not the time to buy new or used cars. If you think you can live without one, this might be the right call. But if owning a car is a non-negotiable thing, just remember that you will need to include recurring items in your budget, Such as car insurance, gas and vehicle maintenance frequently.

Set aside some money for fun

Saving money is great, and It important for your future. But it’s important to allocate a little “fun money” in your budget. Find simple ways to brag about it buying Those concert tickets, or go To this trendy restaurant—Just don’t get into more debt to do so.