Take control of your financial future. You have the power to do it.
Now that you have graduated from college, finding a job will surely be one of your top priorities. After all, you need to start your career off right so you can live your life the way you want it to be, pay off your debts, and start saving for big life changes. In addition, you need to start saving for your retirement early on in your career if you want to live comfortably during your senior years.
While this may be an exciting time for most of you, some new graduates may consider it a big challenge, especially with the way the economy is going. Let's face it. A lot of new graduates are facing heavy financial burdens. Studies show that the average student carries more than $25,000 in student loan debts. Add this to the fact that the unemployment rate is still pegged at about 8% and you can understand why a lot of new graduates feel more than a little anxious about the future.
If you are among the recent batch of college graduates who are about to enter the real world, you need to know that you can take control of your financial future. How do you do it? Here are some useful tips that may help you accomplish your financial goals.
Establish your priorities. Don't be overwhelmed with all the things that are going on around you. This is the perfect time for you to establish your financial priorities so sit down, take a deep breath and try to relax. You need to figure out a way to pay down your highest interest debts and student loan debts while saving for your retirement. Don't forget to save something in case of emergencies since you never know what the future brings.
Live frugally. Studies show that majority of young people aged 18 to 34 buy things they don't really need. Avoid falling into this trap by keeping the starving student mindset. You have lived on a limited budget when you were still in college so don't start spending all your hard-earned money to buy things you don't really need. Instead, use your money to pay down your debts and build your retirement funds.
Keep your credit in shape. Watch your credit score since it can help determine whether you can get a mortgage or a car loan. In some cases, it can even help determine if you will land a job. To keep it in shape, you need to:
- Make loan payments on time
- Use not more that 30% to 50% of your available credit line
- Maintain your oldest credit card to improve your credit score
Get a side job. If you don't earn enough money to go around each month, consider getting a second job.
Remember, you can accomplish your financial goals and take control of your future. You just need to know how to do it right.