So, you’ve finally graduated and now you’re wondering, “What am I supposed to do with all of this money that I am making in my first adult job?” Well, congratulations! I’m so proud of you, and I’m here to help you understand what you need to do in the first couple of months after graduating. I’m going to assume that you are in your career and thriving.
Budgeting
The very first thing I like to tell recent college graduates is to create or refine their budget. I have a lot of different blogs that highlight budgeting, so please check those out on my page. But if this is the first time you’re making a lot of money in your life, you don’t need to spend money unnecessarily.
Create a budget by calculating your total income and expenses. Use this tool to guide your decisions on how much money you should allocate to different categories each month. If you already have a budget, update it with your new income and expenses, especially if you’ve moved into a new apartment or house.
Student Loans
Statistically speaking, most people have student loans after graduating from college. If you have a particular loan that doesn’t require you to make payments until after you graduate, then that’s something we need to take into consideration since you have graduated. Try to find a method of paying off these loans, whether it’s using the debt snowball method or other mainstream ways to tackle large debts. I also talked about this in a previous blog on my channel, so definitely check it out. You don’t want to be the person who is 50 or 60 years old and still has student loan debt following them around, so let’s do our best to either get it forgiven or pay it off.
Saving
If you haven’t started saving a little bit of your check each time you get paid, then right now is the perfect time to start. We want you to be able to get into the habit of saving money and paying yourself first. When you do this automatically, after a while, you will tend to forget that the money is going to a separate bank account, and it’s already allocated in your budget. By doing this, you will set yourself up for success in the future when you eventually want to retire.
Retirement
If you haven’t started saving a little bit of your paycheck each time you get paid, then right now is the perfect time to start. We want you to be able to get into the habit of saving money and paying yourself first. When you do this automatically, after a while, you will tend to forget that the money is going to a separate bank account and it’s already allocated in your budget. By doing this, you will set yourself up for success in the future when you eventually want to retire.
Insurance
My last point is to make sure that you get some type of insurance. Now, I’m not talking about car insurance or home insurance, but more specifically, life insurance. Since you’ve graduated, you have a little more responsibility than before, and if something happens to you, you need to ensure that your family isn’t left with the burden of your expenses. Most jobs offer some form of life insurance, and I definitely recommend taking advantage of that. However, getting your private life insurance from another company will also ensure that your family doesn’t have to worry about anything if something tragic happens. I know it’s not a fun topic, but it’s a necessary one.
