The student loans have been disbursed. Your parent's money for college has run dry. You have now walked crossed the stage and realize it is all on you now. It is on you to have the money for every meal you eat because the meal plan is gone. It is on you to pay your rent from the money you earn. No more refund checks and no more deposits into your bank account from a parent. You don't work, you don't eat! Maybe not that drastic, but you get the point.
There will be college graduates who come out of school making good money and still will have problems with their finances. Just like everyone else making a lot of money that does not mean you can't end up in a lot of debt and living paycheck to paycheck. I want to share three quick tips that will help the new graduates win with their money.
1. Live like a college student:
You have lived like a college student for four years what is living like a college student for a few more years so you can pay your student loan debt off. For example a student comes out making $3000 a month, but lives on $1500. That means they have $1500 a month to go to paying off student debt. $18,000 a year to that loan means it will be gone quickly!
2. Don't live fancy
This may be your first time living on your own. No parents, no roommates, just you controlling the thermostat. Look for unconventional places to live for your first place. Instead of going to that fancy $1000 a month apartment, look for places that are owned by regular people who may only charge you $800 for more space. They just need occupants in the home so that it gives them side income. My first two places were a home and a three level duplex with a garage. Both were $800 and less!
3. Don't lose it!
Although you may have a new salary and making more money than ever, don't go crazy! There is no need to get buy now pay later furniture, a new car, or a new wardrobe. No need to go out every weekend with your friends and try to impress them with rounds of drinks all night. Instead build up a 6-12 month emergency fund so you are prepared for whatever comes your way. (Like those student loan bills that will be in your mailbox six months from now)
Starting off your post college financial life the right way is important. You have the opportunity to use your money to build wealth for yourself instead of others in the form of never-ending debt (car loans, furniture loans, credit card debt, student loans, etc) It is all on you now. Just you.
Thank you for taking the time to read this post! If you know a recent college graduate and want to get them a gift that will last a lifetime get them their own copy of Debt Sucks!
If you enjoyed this post please like and/or share with others!