It is absolutely essential to save save save as a recent college grad!
Coming out of school most college grads don't have a lot of money in the bank (for various reasons) and are then greeted with those pesky school loans that most of us know and love...
When that diploma hits your hand the last thing that anyone wants to think about is paying for the last four (or so) years!
In hopes of preparing college graduates for this situation, Kerry Hannon of Forbes outlines tips on how college kids can be proactive in saving their money after graduation.
1. Buy some books on the basics of how to save and manage money. There are plenty of people in this world that know way more about financial planning than you...
2. Establish a budget to serve as guidelines for your spending/savings habits. This will allow you to see where you can afford to make cut backs and just how much you are spending on random things.
3. Despite your pride, move in with your parents after graduation! The best way to save money is to not have to pay rent...parents aren't really all that bad.
4. and 5. Debt can prohibit anyone from pursuing something that they wish to pursue. Avoid this set back by either not having debt all together or to at the very least reduce your debt ASAP.
6. Even though you may think you won't need it, set up an emergency fund because you really never know when it will be useful. A good emergency fund is about 6 months worth of what you would need to pay your bills.
7. If you do have any extra money, invest it! Money that just sits there will not yield anything, invest a small amount and you see a large return!
8. and 9. If your new job offers a 401k plan or some other means of retirement take full advantage of it. Once you put money in do not take it out! Again with this whole 'plan for the future' thing...if you save a little bit of money now from each paycheck just think of the amount that you will be able to retire with.
10. Similar to number 8, if you have the option of work sponsored health insurance - GET IT! It's one of the best steps that a person can take to insure a stable future, medical expenses are very costly.
11. It's okay to splurge A LITTLE on 'life experiences.' It could be a trip with some friends or even that Broadway show you've been dying to see. It's okay to treat yourself once in awhile to something that you will remember for the rest of your life! Memories are priceless...well sort of.