Graduating college usually means more freedom, more responsibility, and a whole lot more life admin on your plate. The last thing you need is another checklist—so instead, we’ve compiled a financial “watch out!” list to help ensure your post-grad money matters stay in great shape.
Keeping Up With Rent
Many undergrads rely on student housing or university-affiliated apartment complexes for accommodation during their college years. As a post-grad, you may be look at higher rent and less consistent utility bills. Budget more than you think you need for water, heat and electricity, until you get a sense of costs across all four seasons. Of course, always pay rent and utilities on time. This has a positive effect on your credit score and protects you from facing a potential eviction.
Eating Without Going Broke
From groceries to delivery to dining out, food comprises a significant portion of most people’s monthly budget. As you adjust to the post-grad life, consider mastering a few easy meals you can make at home. Cooking from scratch is an excellent means of lowering your bills; particularly when a restaurant meal usually includes tax, tip and delivery fees. If food costs continue to rise due to various economic headwinds, being able to cook at home will mean more money for everything else.
Getting Around the City
The nice thing about many college towns is: all the necessities are close by. This is doubly true for students who live on campus! Therefore, new grads should be extra mindful of the transportation costs when moving to a more spread out area. Remember to budget for gas money, parking, auto insurance and more frequent car upkeep. On the other hand, you might consider prioritizing public transportation or bike paths as you consider where to live and work after graduation.
Using Credit Cards the Smart Way
Credit cards offer a lifeline for new grads in need of housing, food and transportation before they’ve found a steady job. However: if you consistently spend above your means and allow the debt to pile up, you’ll quickly find yourself drowning in interest payments. Wherever possible, aim to pay your monthly statement balance every month in full, and don’t spend more money than you have. You might also consider a personal loan or a loan designed specifically for graduate students, which can offer a lower APR as compared to a credit card.
Paying Off College Loans
Establishing a post-grad life can be challenging when you’re also paying off college loan debt. The first step is to build a budget, so you have a better handle on what you’re earning, what you’re spending, and how to allocate funds so a loan bill doesn’t get missed. Consider consolidation or refinance options if you’re looking to lower your interest rate or combine various bills into a single monthly payment. Finally, if you’re struggling to pay off loans, tell your creditor immediately and talk to a debt counselor who can guide you in taking the next steps.