I can feel it in the air – graduation season is beginning! I work on a college campus, and my younger sister is graduating next week, so the excitement around me is pretty palpable. Along with that excitement can come feelings of anxiousness and worry – what happens next? I had those same feelings about 4 years ago, and I can’t say I miss that uncertainty about what lies ahead (although I do miss the parties). Here are a few tips and suggestions to keep in mind when forging ahead into the future to help get you prepared financially for “The Real World”:
1. Create a budget. Start thinking about the monthly expenses you’ll be responsible for. One thing I wish I would have been more prepared for after graduation was when my loan deferment period ended. For a while, I thought, “Hey, this real-life thing isn’t as bad as I thought it would be,” and then six months later, I realized I’d lose half my income to student loan payments. Cut excessive spending where you can to be sure you can afford your impending loan payments AND your necessary living expenses. *Tip: Looking to cut costs? Check out our articles on how to Save Money on Your Monthly Bills and being a Penny Pincher.
2. Set savings goals. Don’t forget to start your emergency fund if you haven’t already! This is the perfect time to do it, before your loan payments kick in. Put aside as much as you can now before the bills start to roll in.
3. Share expenses. If it’s a viable option for you, opt to move back home or get a roommate and split your costs. It’s definitely not a long-term solution, but consider having someone help out with your living expenses until you can get on your own two feet.
4. Work! Still waiting to land your dream job? Take on something else until it comes along. Ideally, you should try and find something in your desired field to gain experience and get your foot in the door, but if you can’t, make sure you’re doing something so you have a source of income.
5. Sell what you don’t need. It’s probably safe to say that if you’re moving back home or in with a friend, you’ll be able to shed a bunch of unnecessary items that you no longer need – dressers, bookshelves, etc. Consider selling these things for a little extra cash. You could probably find some incoming freshmen that might be looking for what is no longer useful to you.
If you could share any financial advice with recent graduates, what would you tell them?
