Money Really Matters – Some Tips for College Graduates to Spend it Wisely

Did you recently complete your graduation? Are you about to start your first job? Well, if yes, then it is extremely important that you gather proper knowledge on financial matters. Most college graduates aren’t aware as to how they should deal with their money and as such, swipe credit cards in the same way they would be spending cash. Similarly, some graduates even take out several loans without even thinking how they will repay them.

5 Tips every college graduate must know to stay away from financial hurdles

Here are discussed 5 tips for college graduates so that they may not suffer from financial hurdles.

1. Repay outstanding debt soon – If you had taken out student loan, then you should try to pay it off as quickly as possible. Although you may want to postpone the loan payment or make the minimum payment only, you will take a lot of time in repaying the loan this way. You need to know that once you pay off student loan, you will be able to build your credit score. Thus, when you wish to buy home or car, your lender will be evaluating your score before approving the loan.
2. Establish credit score – You must maintain good score if you want your lender to give approval for any kind of loan. This will enable the lender to understand if you can manage money properly and pay down the loan amount on time. Thus, if you can afford to pay the entire credit card due within the specified time period, then you will be able to save a lot in the rate of interest.
3. Formulate a good budget in advance – Getting the first job is like a dream come true for the young graduates. Thus, they will spend money in hard drinks, parties, discos and several such places to make life entertaining. The college graduates should be taught to formulate a good budget and spend money accordingly.
4. Begin saving for retirement – As soon as you get a job, you must start saving a certain percentage of your salary for retirement. Even if it is very less amount, you will be surprised to see that the amount will become a lot with time. A smart person will never delay in saving money for retired life because you must keep your future secured much ahead of time. If your company is offering 401k plan, then you should try to get the most advantage from it.
5. Build fund for the emergencies – Every graduate should make a fund where they will be keeping some money for the emergencies. Thus, if you require buying a gas or any member in your family falls sick suddenly and you do not have enough money, then you may take money from this fund and fulfill the necessity. It is advised that you do not use money from this fund unless there is some urgent situation.

The above-discussed tips will enable college graduates to handle money in the most efficient way.

Tags: Credit card, Credit history, Credit score, Finance, Student loan

Category: Financial Education, Financial Planning