Want to save this page for later?

NextGen Magazine

 
 

Three Smart Things to do With Your Money After Graduation

By:
Jason Wong
Published Date:
May 10, 2016

Growing MoneyThe years following your graduation may be some of the most financially difficult of your life, between student loans and increasing cost of living. While it may be hard, there are some things you can do to make those years hurt less – and build a solid foundation for your financial future. Here are three tips from Forbes to consider:

Set aside money for a rainy day. You’ve probably heard this advice before, and that’s because it’s true. Saving money only helps you in the long run. You never know when a big cost might hit you, whether it’s your car breaking down, you losing your job, or a long-term illness. Having a nest egg could prevent that big cost from being crippling.

Contribute to a 401(k). Retirement may seem ages away, but the fact is, you’ll never regret starting your 401(k) early, especially if your employer offers any form of matching contribution. It’s basically free money! That and the power of compounding interest will ensure an easy (and perhaps early!) retirement.

Make a plan to pay off your debts. Whether its student loan debt, credit card debt, or something else entirely, it’s important to get into good habits early. If you can pay a little more of your loan off each month to conclude payments earlier, do it! If you have poor impulse control, set a low credit limit on your credit card.