Best Financial Advice for Recent College Grads in 2022
The article was contributed to Leisure Freak by freelance writer Tracie Johnson.
For most people who’ve done it before, starting life after college is cited as being one of the most overwhelming times in their adult life. While some get out of college and into a laid-out financial plan for them by their family, most people have to get out on their own and just figure it out. It’s, however, not all doom and gloom, thanks to the wealth of both formal and informal information available on the internet about starting.
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Pre-Graduation Financial Tips
As if starting life after college wasn’t already difficult enough, you now have to do it while in the middle of an ongoing pandemic and worrying global tensions. Before you finalize your studies and officially head out into the world, here are some tips you could embrace to help you set up a soft landing for yourself once you graduate.
1. Embrace Budgeting
Even from the allowances afforded to you while in college, it’s never too early for you to embrace a budgeting culture. Especially in these social media times where you’d never run out of influences on ways you could spend your money, living on a budget can at times be your saving grace from living in debt.
2. Plan for Your Retirement
Just as it’s never too early to live within a budget, likewise, it’s never too early to start planning for your retirement. Some of the options to work on your long-term financial security include saving exclusively for your retirement and investing in long-term investments like life insurance and real estate.
3. Aim for Good Credit
As you get out into your post-college life, a bad credit score will quite often have the effect of denying you opportunities for financial development. Though it may not come easy, clearing your debts, including your student loan, should be top of your priority list as you head out into the world.
4. Prioritize Saving
With every little income that comes your way, normalize setting aside percentages of the same into different savings accounts. You can set aside some money for your rainy-day fund, your retirement, as well as short-term expenses that would require cumulative storage of cash.
Post-Graduation Financial Advice for Recent Graduates
Once the hype around graduation dies down, you’re left in a state where you have to, all alone, contend with the uncertainty that is your post-college life. Here are some tips to ensure that your finances are in check once you step out of college and into the real world.
1. Don’t Buy that New Car
Though getting that new car may seem like a priority when you have the cash ready, more often than not, you’ll probably come to regret this decision a few months down the line. Instead of getting that expensive new car and exhausting all your savings, you should consider checking out cars for sale online for offers on other affordable options.
2. Moving Back to Your Parents Isn’t That Bad
You should probably consider moving back into your parent’s house to cut down on your living expenses at the cost of losing some of the freedom you had while living alone. If this is not an option, getting a roommate is another approach that can help you ensure you cut down on costs.
3. Strive To Be Financially Literate
While there are formal financial courses in college, you may have had other ideas about what you wanted to study. This notwithstanding, you should make an effort to make yourself financially literate through online or physical classes.
4. Take Risks on Available Investment Opportunities
While you’re young and not tied down by too many responsibilities, you have the luxury to take risks in financial investments. Though there’s always the risk of some of your investments not going as planned, you should always take this as a step towards learning what works and what doesn’t for you.
Out of College and Into the World
While getting out into the world after college may be a scary affair, you should take comfort in that many have come before you, at times with more unfavorable odds. You should try to reach out to other people and learn from their experiences as you go about charting your course. Just because it won’t be easy, it doesn’t mean you should give up on trying altogether.
While you’re young, use the internet and try to learn as much as you can and open yourself up to new experiences. Make the most of your finances by trying out different investment opportunities even as you pay your bills.
Thank you Tracie Johnson for sharing these timely tips as many people are ready to move into their well earned adventure of post-college life.
Tracie Johnson is a New Jersey native and an alum of Penn State University. Tracie is passionate about writing, reading, and living a healthy lifestyle. She feels happiest when around a campfire surrounded by friends, family, and her Dachshund named Rufus.
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