For recent college grads in America in 2022, the real world often hits hard and fast. There is a good chance you are on your own and away from your parent’s support for the first time in your life, and now are starting your career and looking to get your finances in check. In addition, you likely have to worry about more loans than previous generations that have to be paid off in your early post-grad life. Luckily for you, there are some very basic financial moves you can make during this time to help send you on your way.
Avoid Lifestyle Inflation
If you are entering your career after college, chances are your income will be higher than ever before. This is good, but can also be dangerous if you overindulge with this money when in reality you likely are in a position to be more financially conservative than ever before as well due to loans and cost of living.
Create a Strict Budgeting Plan
Your post-grad years will require you to keep an eye on your spending to an extent you haven’t yet done, which means it is important to stay on an organized budgeting plan to help direct your spending. This will give you a better feel of how much money you actually have to work with, and what type of things you should be spending your money on.
Be Careful of Credit Cards
Because of the financial limitations you may have during this time compared to at other points in life, you may feel tempted to rely on credit cards at times. While there is nothing wrong with using credit, it is key to make sure you have a plan to pay off the debt you create and don’t just aimlessly spend away on credit cards. This is especially important as at this young age, your credit score is relatively volatile still.
Do Not Mess Around With Student Loan Payments
Speaking of credit scores, your student loan payment history may go a long way in determining your credit score, as bureaus typically weigh them rather heavily. Whatever you do, pay your loans on time. Make sure you are frequently checking your account and reminding yourself of your due date. Although it is recommended to pay off more than the minimum for each payment, make sure you at least pay this minimum no matter what. If you do not do this, more fees will add up and begin to make your loan situation far worse.
