Those first couple of years after college are anintenselyexciting time.
Youre at the start of yourlife as an adult, and yourefinallyin control of your money.
The pressure is on for you to make decisions that will ensure your security and independence later in life.
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Probably not as good as youd like.
It always seems like an uphill battle to build (and keep) a decent amount in savings.
But what if your car breaks down, or you have a sudden medical bill?
So how can you make your housing costs benefit you?
Your best bet is tolive at home for a while.
Find Some (Good) Roommates
Right on the saving, wrong on getting your own place!
Paying full-price for housing can be a paycheck-killer.
Instead, look for the telltale signs of up-and-coming neighborhoods.
And its about friendship, because when youre single and in the city, your friends are your family.
For twentysomethings, the area of runaway spending is usually the entertainment category.
Does the following sound familiar?
We just got tickets to see [band that everybody loves].
Jim, Ted, and [everybody else you love] are going to be there.
Who wouldnt want to do that?
That sounds like a ton of fun!
Or, Kristin just got promoted, and were all thinking about a girls weekend in Vegas.
Of course youre in!
So how can you exercise more control over your entertainment expenses?
One simple strategy: be the one who determines the plans for your group of friends and makereasonably-priced plans.
In short,devise your social calendar, so that youre not hijacked by your social calendar.
The trick is to schedule everything ahead of time, and that can take a little bit of effort.
But the nice part is that youll always have something to do!
There will always always be high-priced, fun obligations that youll have to pay for.
Buy (Dont Lease!)
a Reliable Car
If youve just graduated from a four-year college, you have the right to feel proud.
For many people, that present to yourself is a car.
Carsalesmenpray for that combination of circumstances.
Get an idea of what youre looking for in a car space, gas mileage, miles driven.
Having an expense disappear like that is kind of the same thing as getting a raise.
Fight the urge and buy something that will benefit you financially, rather than harm your budget.
Because the budget of a twentysomething is usually pretty tight, that sounds like an excellent idea.
The lower payment makes it more likely that a new grad can live within his or her means.
So what should you do?
First, if it is at all possible for you to choose the 10-year repayment plan, do so.
Faithfully making extra payments can cut the length of your payment plan byyears.
Youve got four decades to begin putting money away.
Why make that effort now, when your budget is so tight?
So you should probably start saving for retirement, and soon.
Whats their401(k)plan like?
Will they match your contributions?
Does the company have a pension plan?
If so, what do you better do to become fully vested?
Most companies require a tenure of five to 10 years.
Or, even better, their high school or college offered classes in personal finance.
Those people are the lucky ones.
So get to work!
But remember, the more effort you put in, the more wealth youll get from it.
Why isbuying a houseso great?
Then, after your mortgage is finally paid off, your housing payments decrease significantly!
For more on the decision between buying and renting, check outthis article from Time Magazine.
Your Turn: If youre in your 20s, whats your biggest financial consideration?
If youre older, whats your best financial advice for todays twentysomethings?
Matthew Burke is a social worker and career counselor who is very happy he started saving early.
It sounds appealing right?
Check it out here!
