Funding Your Future: Financial tips after you get your first job out of college

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Rachel Langlois gives us pointers on how to make the most of your first job out of college. For more information, go here. 

  • The average graduate in 2015 is starting with $35,000 in student debt.

Ok, let’s start with some of the things you should DO:

  • Budget, typically loan payments start six months after graduation.
    • Get an idea of your cash flow
    • 50/30/20
      • Start saving now and building that habit.
      • Set-up automatic transfers, you don’t miss what you don’t see
      • 3 types of saving: Emergency, Retirement, and something you want
        • Emergency fund
          • Plan for the possibility of losing your job or needing to pay for relocation, etc.
        • Retirement
          • $2k/mo at the age of 22 vs. 32 = difference of $160,000
          • Take advantage of employer match, set up even if not eligible yet
          • Set up as a percentage of pay so that it increases naturally as your income does
        • Make sure you are amply insured, protect yourself against financial ruin
        • Learn to cook, brown bagging it= $5 x 5days/wk =$1300/year

Here are things you shouldn’t do:

  • Don’t ruin your credit
    • Pay bills on time
    • Set up automatic payments
  • Don’t increase your standard of living for as long as possible. Keep living the same, and instead focus on saving.
    • Don’t get into debt trying to live like your parents. New car, travel, etc.
      • Make payments into a savings account
    • Pay cash for things
      • If you can’t afford it, don’t buy it. Look for second-hand items.

 

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