College graduation marks the beginning of what adulting truly looks like.
Bye bye, student discounts.
Hello, full-priced everything.
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You had guidance from professors, support from your parents and the camaraderie of your fellow students in school.
Dont Succumb to Lifestyle Inflation.
Hopefully youre earning more money than you did in school.
But use that salary increase for good, not for financial destruction.
Dont give into thedesire to buy all the thingsjust because youre making more money.
Chances are you also have more bills.
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Enough small talk.Here are some waysto earn extra cash, without all of the social stuff.
As you settle into your life post-college, give yourself time to adjust.
Dont go out and purchase an apartments worth of new furniture all at once.
It might take time to figure out what that looks like.
If you fail onebudgeting method, give another a try.
This isnt a graded exam.
Treat Bill Due Dates Like Assignment Deadlines.
Now youve got multiple bills in one month, each to a different service provider.
Keeping track of when each bill is due is vital.
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double-check to factor inwhenyou get paid.
Get Used to Making Student Loans Payments.
If you borrowed money for college, its time to pay up.
When youre setting up your post-grad budget, ensure youre factoring your student loan payment as a necessary expense.
Check with your loan provider to see how much your minimum payments will be.
If the amount seems unmanageable, you might be able to get on an income-based repayment plan.
You might also considerconsolidating or refinancing your loansunder a lower interest rate.
Deferment or forbearance is usually only recommended as a last resort.
If you have private loans, contact your provider to see what options may be available to you.
Use Credit Cards Responsibly.
Credit cards can be tricky.
On one hand, they can help youbuild a positive credit scoreorearn rewards points.
But use them irresponsibly and you could wind up in a hole of debt.
Have a Plan If Youre Moving Back Home.
These days, there really isnt any shame inmoving back home after college.
What youll regret, however, is moving back home without a plan.
Discuss with your parents the expectations for covering household bills and expenses.
Speaking of which …
6. you should probably Have an Emergency Fund.
Experts say you should have between three to six months of expenses saved in anemergency fund.
Those who watched their savings dry up during the pandemic may want to save even more.
you’re able to automate your savings by directing a percentage of your paycheck to a savings account.
Oruse an app like Digit to save money without thinking.
Digits algorithm analyzes your income and spending and determines safe amounts to transfer automatically to savings.
Even if you juststash $5 bills in a jar, start saving for emergencies now.
Create Sinking Funds to Save Up for the Big Stuff.
Dont just limit saving to your emergency fund.
Setting upsinking fundsfor those infrequent expenses will prevent you from scrambling.
You may want toopen separate savings accountsfor your different short-term savings goals.
Save for Retirement Now.
I know youre just beginning your career.
Retirement is probably one of the last things on your mind.
But the earlier you start saving for retirement, the better off youll be.
Thats a significant difference.
Opt into your jobs401(k) planas soon as youre able.
At the very least, you should contribute enough to meet your employers match.
Check out thisretirement saving guidefor more insights to how you might save up for your future.
Budgeting puts the focus on how much money you spend and how much you save.
But the amount of money you make matters just as much.
This is why its important to ensure youre being offered a fair, competitive salary from the beginning.
Sites likeGlassdoorandPayscaleprovide salary estimates for different fields and companies so you wont accept a low-ball offer.
When considering job offers, dont forget to factor in the companys benefits package and any other perks.
Base Your Budget Off Your Take-Home Pay.
Thats your gross income.
Some deductions taxes, Medicare and Social Security arent optional.
Youll have a choice to make when it comes to others, like retirement contributions and various insurance plans.
If youre under 26, you canstay on your parents health insurance plan.
If youre wondering whether youd benefit from having a life insurance policy,this articlecan help shed some light.
Get a Side Hustle.
you might use the extra income to pay down student loans or other debt.
Or you could put it toward building that emergency fund or saving up to go on nice vacations.
Nicole Dow is a senior writer at The Penny Hoarder.
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