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How To Get Your Finances In Order As A New Graduate

How to get your finances in order

How to get your finances in order

Congratulations graduate! You did it, you’ve walked across the stage, and obtained the degree you spent four long working hard to get. No doubt you gave up a lot to get this degree. Evenings and weekend after classes where you spent hours hunched over the keyboard writing a paper or studying for an upcoming exam. Likely there were blood, sweat, and tears and tens of thousands of dollars that you poured into your degree, and now it’s all over… you have the piece of paper to prove it.

It’s time for you to navigate your way through the real world which means tackling your finances. You might be overwhelmed by financial jargon, and have no idea how to navigate what comes next, but fret not getting your finances in check is easier than you think.

 

  1. Start your job hunt. Nothing will make your bank account breathe a sigh of relief more than a regular paycheque being deposited into your account. Finding a job as a new grad can be incredibly challenging and when you’re starting out you may have to juggle a few part-time positions. That’s okay! As long as you have some money coming into your bank account you’ll be able to start grasping how you can best manage it for your future.

 

  1. Start Tracking Your Finances. It seems tedious but it’s incredibly important. Now that you have some cash flow it’s important to manage it. Start building your habits early, know where your money is going each month. Whether you are using a notebook and a pen, excel or a money management app you need to know where your money is going.

 

  1. Take a look at your student debt. I know, I know, you just graduated and finished paying that incredibly large tuition balance. It’s likely that you had to take out student loans to fund your education and while you probably don’t feel like looking at the balance, it’s important to start making payments now. Even if they are small it will make a difference in the long run and help you pay less interest. Know how much you owe and start making a dent.

 

  1. Build an emergency fund. All of your new found financial obligations probably feel insurmountable. What if you don’t find full-time work? What if you are laid off? What if a loved one gets sick? While these are terrible things to think about, they could easily become a reality. Building an emergency fund is the only way to feel secure financially. Squirreling some cash away for when you really need it is so important. Even if you start with $100 a month it’s important to build the habit. You may not need that money right away, but when you do, you’ll be glad that you have it.

 

  1. Save for the future. Yes, you just graduated and you probably aren’t concerned with retirement at all. I’m going to sound like a broken record here but it’s never too early to start. If you are able to put $25 away from each paycheque you are going to be leaps and bounds ahead of your peers. With compound interest on your side, you’ll be able to save thousands, if not tens of thousands of dollars for your retirement in your 20’s. When you hit your thirties you’ll be set up to retire a millionaire! And who wouldn’t want that?

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