Graduating from college is an achievement that nearly three million students will experience this year. But as they embark on their new careers (with school no longer serving as a metaphorical safety net), some graduates are bound to face financial obstacles for the very first time!
Living independently or earning an entry-level salary could bring about some learning curves. It’s just par for the course. But Rebecca Gramuglia, TopCashback’s Personal Finance Expert, explains there are ways to overcome them. She shares with us five helpful post-grad finance tips everyone can use to make adulthood – and all the responsibilities that come with it – an easier adjustment.
1. Build Your Credit
The importance of credit today cannot be understated. And as a young adult and recent college graduate, you should always be conscious of how your financial decisions affect your credit score.
If you don’t already have a credit card, find one that best suits your needs and lifestyle now. Whether you use it or not, having a credit card in your name helps you establish credit. The longer your credit history is, the better it will be.
2. Implement a Budgeting Tool
No matter what job you hold, try your best to save and budget your income. The 50/20/30 rule is the key to building your savings.
Only spend up to 50% of your after-tax income on essentials, such as housing and food. You can use 20% toward savings and any debt you may have accrued. And the remaining 30% can be spent on lifestyle choices, which includes treating yourself.
3. Start an Emergency Fund
It’s tempting to blow cash gifts from your graduation party. But the money you received from friends and family is the perfect start to an emergency fund. You can spend a portion and save the rest, or maybe you’ll find the willpower to save it all! No matter how you divide your extra dough, adding to your emergency fund can eliminate any future financial stress and frustration.
4. Shop Smart
Do your best to not pay full price on anything. That’s what the sale and clearance racks are for! You can also compare prices at different stores or wait for a holiday weekend to shop fantastic online deals.
Of course, you’ll score brownie points if you shop through cashback sites like TopCashback.com. You can earn a percentage back on qualifying purchases from stores such as Nike, Sephora, GNC and many more.
5. Focus on Yourself
It’s that simple. Stop trying to compare yourself to other people. So what if you don’t own the newest iPhone model or have the money to go on a Caribbean cruise like your Instagram followers? Remember: The more you save now, the more cool stuff you can buy or do later without having to worry if you’ll be able to pay your bills.
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by Diana Oliveira
Diana Oliveira is the senior copywriter at TopCashback.com. After beginning her copywriting career at a paper company, where she harnessed her creative chops writing about…paper, this self-described “bargain shopper” has felt at home talking about our many stores, deals and money-saving tips the last few years.