The Personal Finance Advice Every College Graduate Needs

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For years you’ve lived on a college budget, stealing meals wherever he can, buying gas trip by trip, and never once pondering the term “401(k). Getting that first paycheck from your employer will feel like more money than you know what to do with. But BBefore you start daydreaming about fancy cars and beach vacations, make sure you have yourEnd ducks in a row with these ten financial tips.

Know your value in salary negotiations

Negotiating your first salary is difficult, but you are not without leverage. Use the resources at your disposal, such as your university’s career center and other recent college graduates in your industry, to assess whether the offer they have made to you has sufficient market value. Otherwise, you certainly don’t need to accept the first offer that comes along.

Be realistic about moving

After experiencing four years of freedom, you probably aren’t looking forward to living with your parents again. But if this is an option, it’s worth considering, especially if you’re between those who carry important debt. Saving on monthly rent payments allows you to save money and repay the loans at a higher price impressive speed. Also, you’re going to want a nest egg before you sign a lease.

Match your company’s 401(k) contribution

When you get a job, you will have to decide what percentage of your salary you want to contribute to your 401k) retirement plan. Your employer will most likely offer to match whatever you’re contributing up to a specified percentage; he wants to make sure that he is contributing at least that amount. If they offer you up to 3%, contribute at least 3%. Doing anything else would be leaving money on the table, and the interest on that money will increase significantly over time to prepare you for retirement.

Open a Roth IRA

I know all of these terms sound scary and confusing, but they’re not. a roth GONNA it’s just an account you can contribute up to $6,000 per year to invest and not having to pay taxes on the earnings when you withdraw it at retirement. Put the full $6,000 in each year if you canand invest long and low riskterm investments.

Do your due diligence on health insurance

If it’s an option for you, stay with your parents. health insurance as long as possible. If not, really consider which of the plans offered by your employer is right for you. For example, you may not need the most expensive option if you don’t anticipate needing a low deductible. And if you don’t know what that means, here is a good place to start.

Create a credit score

Your credit score is important because, ideally, one day you’ll make a purchase where you’ll need to take out a loan. Building good credit isn’t hard, it just might take a while. You can build your credit score making payments on time at a low limit, secured credit card, pay your utilities, and even report your rent (if you have a rent payment). start early, and thank yourself later.

create a budget

It’s scary at first, but it’s important to know how much money you’re spending and for what. many like the 50/30/20 rule: yesspend 50% on necessities (such as rent, groceries, and minimum loan payments)spend 30% on splurges (such as travel, takeaway, and concert tickets)and spend 20% on savings and extra payments on high-interest debt.

Understand your student loans

One time youre graduate, usually has a six-one-month grace period before you need to start paying back those student loans. Sit down and find out how much you have in federal vs. private loans, compare interest rates, and make an action plan on how best to pay them off.

buying a car

Unfortunately, due to inflationNow is not a good time to buy new or used cars. If you think you can get by without one, that might be the right move. But if having a car is non-negotiable, just remember that you’ll need to account for recurring line items in your budget, such as car insurance, gas, and regular vehicle maintenance.

Reserve some money for fun

Saving money is great, and IIt is important for your future. But it’s important to build a little “fun money” into your budget. Find little ways to splurge to buy those concert tickets, or go to that trendy restaurant—just don’t go into more debt to do it.

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