New graduates and their parents often learn the hard way that early financial choices have the potential to drastically curtail or even wreck future plans and dreams.
To get started on the right track, follow these time-tested guidelines
Recent studies show that the average college student finishes an undergraduate degree with more than $37,000 in student loans. You can be an exception to that statistic. Work hard to find grants and scholarships. Even if parents cover most college costs, consider taking on a part-time or summer job to supplement your income.
Document how much you make and spend. Surprisingly, many people never develop this simple financial skill, and fewer still make informed choices based on their budgets. Build a strong foundation for the future by developing the discipline to live within your means.
Are you saving for a deposit on an apartment? Do you want a new car? Setting aside even small amounts can help you achieve those objectives. By learning to plan for specific wants and needs, you’re more likely to meet your goals. Keep motivated by rewarding yourself as each short-term milestone is met.
Set aside funds to cover unexpected expenses like car repairs or medical bills. Start by saving $1,000, then increase the balance over time. If you’re living in an apartment, don’t forget renter’s insurance. And make sure your car insurance is up to date. If you’re not included on your parent’s medical insurance policy, consider catastrophic coverage.
Pay your bills on time and keep a close eye on any credit cards, paying them off in full each month. About 35 percent of your credit score depends on your payment history. Damaging your credit early on can take years to correct.
© MC 2018 | “Financial Tips” are published monthly to provide useful financial information. The information contained in this site is of a general nature and should not be acted upon in your specific situation without further details and/or professional assistance. Visit www.asfinancialservices.com for more information on managing your finances with a sound financial plan.
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