Graduation is an exciting and scary time for high school graduates and college even.
Even with four years of significant between these monumental times, five basic pieces of financial wisdom are valid for both sets of graduates
Financial advice for young graduates.
1. Learn how budget
101 Budgeting is not a common course in college, but he probably should be.
Fortunately, the basics of budgeting are quite simple (even if you are a liberal arts major who intensely hates all numbers of things).
Spend less than you earn. Tweet this
The way to do is to always understand how much money you have coming in and how much goes out.
Set aside 10 minutes to write your monthly income and subtract your fixed expenses (car payments, student loan bills, rent) and the rest is the money you have to spend each month .
2. Make a habit of saving
Many students and university graduates shake his head in disbelief when someone advised to start saving. "What, with all that student loan debt and first job (or college jobs) coming with notoriously low wages?"
But it is always important to practice the habit of returning money aside each paycheck.
Even if you can not afford to put away $ 5 per check, the habit will serve you well in the years to come.
Just be sure to increase the amount you save salary increases. And do not walk away from a matched employer pension funds.
At least contribute to the amount your employer matches to get free money.
3. Reduce your debt
high school graduates four years of college to avoid credit card debt and attempt to minimize student loans.
graduate with the least possible debt will give you the flexibility to take greater risks in your career because you will not be just as desperate to start earning money to pay the bills.
College graduates face the imminent burden of student loans should evaluate all their repayment options.
Do not wait to find all your loans before the grace period of six months has elapsed. Look in the rebate programs based on income for federal loans and various refinancing options on private loans.
And do not neglect to credit card debt.
These high interest rates can be a killer and credit card debt you amassed in college should be a top priority for elimination in the months after graduation.
4. Handle credit cards with care
The two sets of graduates must be diligent about using credit cards.
Credit cards can be a useful resource for building your credit score, but can be dangerous when it comes to the creation of debt.
Use your budget to ensure you do not overspend on your credit card. Then repay it on time and in full each month.
Never hold to pay the minimum balance. You should not be paying interest to the bank by entering into a debt cycle.
5. Build a strong historical credit score and credit
Your credit report is like a university transcript; it will follow you forever and impact on your future. Tweet this
You will be eligible for the best financial products by building a healthy credit history and strong credit score.
In addition, some employers take a credit report during the hiring process and most owners (those deemed at least) will run a credit check on you before renting an apartment.
Handling credit cards wisely is one of the easiest to build a strong credit rating means. Tweet this
Student loans will also contribute to a credit score, but you will not build your score until you start making payments on your loans .
Take time to study up
There are many ways to learn about finances: books, websites, blogs, podcasts, TV shows. Find that one appeals to you and focus on the study up.
Do not let money be a stress factor in your life. Entry and exit college can be stressful enough.
Taking the time to learn the financial basics, you eliminate a lot of anxiety swirling around managing your money.
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