Top Tips for Graduates – Financial

If you’re a college graduate, you’re probably faced with a host of decisions. Do you want to get an entry-level job or pursue your higher education? How much do you want to save for your retirement? What type of debt do you want to incur? What type of credit card debt do you want to have?

The advice that follows is not exhaustive, but provides general guidance for those just starting out in their career.

To save money

It sounds like common sense, but it’s important to start your financial planning early. In addition to the basics like buying insurance and buying a cell phone, here are some things many young people forget about: car insurance, renters insurance, life insurance, health insurance and disability insurance (if applicable).

Having all of these things covered will save you a lot of headaches down the road.

Consider the type of work

Think about the type of job you want to have when looking for accommodation. If your goal is long-term stability with a comfortable salary, look for neighborhoods with older homes where property values ​​have gone up rather than down in recent years (unless you really like living in Manhattan).

The type of job you do will have a lot to do with the type of neighborhood you want to live in. If you want to be close to work, it’s probably not a good idea to live in an area with a high crime rate. .

Consider your career goals

Think about what you really want out of life and work towards those goals, even if it means making compromises along the way. Consider the type of hours you want to work and the number of vacations you want (this will vary by industry).

For example, if you want to be a graphic designer but also need to work part-time to make ends meet, you might want to consider working as a graphic designer and also taking a part-time job in order to meet your other financial obligations.

If you’re considering going into college debt, consider how much money you’ll have after you graduate. Be realistic about what your finances will look like after you graduate and whether the debt is worth it or not.

If you don’t have any money set aside, think about the other things in life that are important to you, whether it’s paying off student loans or saving for retirement, and put those goals ahead. your education expenses.

Top tips for graduates

Consider the right credit card

Choose a credit card that fits your lifestyle, rather than just asking for the best credit card available. Credit cards can be very expensive and they tend to have annual fees (even if they are free or inexpensive). You could end up spending more money than you think on interest payments on your credit card balance, as well as annual fees (if applicable).

A good rule of thumb is to choose a credit card that charges no annual fees and charges no interest on purchases (no foreign transaction fees either) with at least 20% off everything purchase or balance transfer fees.

This way, when it comes time to make a purchase, you can choose the best card for your needs.

Learn to balance your checkbook

Paying bills on time is essential to maintaining good credit and preventing debt from piling up. It’s also important to track your expenses and make sure you don’t spend more than you earn (which is also a form of debt).

Make sure you are able to cover all your monthly expenses (including car payments, student loans, rent, insurance, etc.) with what you earn each month before taking on new debt.

Learn to negotiate

Learn how to negotiate with creditors when negotiating interest rates or other terms. In general, the better your credit score, the better a deal you will get when it comes time to pay off your debts.

If multiple people in your family will be responsible for paying off debts, consider working together rather than against each other

Joint ownership of a home can also help in situations where one person may be unable to pay off debts as quickly as others due to work schedules or financial difficulties (such as job loss).

Consider the fees

You should consider the fees associated with certain types of loans. Loans such as credit cards and student loans usually come with fees. You may be able to negotiate a lower interest rate on your loan if you opt for another type of loan.

If you’re looking to buy a home, consider putting money in an investment account rather than taking out a loan to pay the down payment.

Putting money into an investment account will allow you to borrow from the account in the future when it comes time to buy your first home (assuming your investment account will be worth more than you owe on the home ).

Also, it’s important to set aside money for retirement early on, so you can build a nest egg before you start working in earnest (unless of course you’re planning to retire early).

Start thinking about how much debt you want to take on

This can be one of the toughest decisions when it comes to getting a college degree, as it involves personal finance issues that many people aren’t comfortable talking about.

If certain types of debt scare you (like credit card debt), consider asking someone to help you assess whether or not that debt is necessary to achieve your goals.

In conclusion

When it comes to financial advice, the important thing is to keep things in perspective. Don’t get too bogged down in the details of your finances. Instead, focus on the big picture and do what you can to put yourself in a position where you can live comfortably for the rest of your life.

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