If you're a recent college graduate, it's pretty likely that you have money on your mind.
More like: You're wondering if you have ENOUGH money.
We've got an easy way for you to take a few small steps today to set yourself straight for the future.
Set a budget and stick to it. Calculate the amount of money you’re taking home after taxes, then figure out how much money you can afford to spend each month while contributing to your savings. Be sure to factor in recurring expenses such as paying off student loans, monthly housing costs, utilities, groceries, transportation expenses, and car loans.
Pay bills on time. Missed payments can hurt your credit history for up to seven years and can affect your ability to borrow, the interest rates you pay, and your ability to get a job or rent an apartment. Consider setting up automatic payments for regular expenses like student loans, car payments, and phone bills.
Be careful how much you borrow. Understand the responsibilities and benefits of credit. Shop around for a card that best suits your needs, and spend only what you can afford to pay back. Credit is a great tool, but only if you use it responsibly. Good money habits suggest that you pay credit card balances off monthly to avoid extra interest.
Plan for retirement. It may seem odd since you’re just beginning your career, but now is the best time to start planning for your retirement. Invest enough to qualify for your company’s full match — it’s free money that grows to a significant amount over the years. Automatic retirement contributions quickly become part of your financial lifestyle without having to think about it.
Prepare for emergencies. Start an emergency fund and do your best to set aside the equivalent of three to six months’ worth of living expenses. Make saving a part of your lifestyle with automatic payroll deductions or automatic transfers from checking to savings.
