You’re out of school and it’s time to start your career, but being college graduate doesn’t make you immune from dumb decisions. In fact, there are many money mistakes college graduates make quite often. Follow these suggestions to avoid these typical pitfalls.
Being Too Picky about Finding a Job
Expecting to land a great job immediately is a common mistake graduates make. The reality is that you’re probably not going to get your ideal job right out of the gate. Don’t turn your nose up at money and experience because it’s not exactly what you want. An entry-level job is not a life sentence, and it will help you get started on building your life sooner rather than later.
Living Beyond Your Means
Anxious to live better than during school or overwhelmed with a new salary, many graduates overspend. Living beyond your means, especially when you have loan debt, can quickly lead to misery. To save yourself for this, budget as soon as you know your income. Track the flow of your money and cut back on non-essentials as much as you can, leaving plenty for loan repayment.
Not Having a Realistic Budget
Many graduates, if they do put together a budget, falsely believe that they can rely on credit to get through. Relying on credit cards often puts grads in debt quickly. Make a list of your expenses and incomes to compare, then determine which expenses are and aren’t necessary. Again, cut back on non-essentials as much as possible to eliminate needless debt.
Neglecting Student Loans
Of all the money mistakes college graduates make, this is the most foolish. The grace period may seem long on graduation day, but it isn’t. Start repaying student loans as early as possible, and you’ll not only be debt free sooner, but you’ll also give yourself a solid credit rating. Additionally, do research to understand your loans; it will make managing them much easier.
If you avoid these money mistakes college graduates commonly make, you’ll be putting yourself on the fast track to living a prosperous adult life.