Financial Steps for New Graduates
Graduating from college is often viewed as the start of your adult life. The financial decisions you make as you start this new stage of life can significantly impact your finances for your entire life. Habits formed early are often difficult to change. To make sure you develop good financial habits, consider these tips:
- Take a look at where you stand financially. First, prepare a net worth statement to get a feel for your assets and liabilities. Then, prepare a budget based on your income and expected expenses. Find a way to save at least a little from every paycheck. If you really want to achieve your financial goals, one of the smartest strategies you can adopt is to live below your means so you can save consistently.
- Get a money management system in place. That way, you'll be able to easily track your expenditures, so your spending won't get too far out of line. For a top-of-the-line listing of budgeting software, visit our Software Center. The system will also help you organize information about your assets and investments.
- Use debt cautiously. Only use credit cards if you can pay the balance in full every month. If you have student loans or other debts, come up with a plan for paying them off as soon as possible. Consider getting a Student Loan Consolidation loan where you can bundle all of your student loans into a single loan with one lender and one repayment plan.
Take on other debt, like car loans and mortgages, only after a careful analysis of whether you can afford the payments and whether the purchase really fits in with your financial goals.
- Sign up for your 401(k) plan at work. Even though you just graduated and retirement is probably decades away, start contributing to your 401(k) plan as soon as you're eligible.
- Obtain health insurance. Once you graduate, you typically aren't covered on your parents' health insurance policy. If you don't receive health insurance at work, look into obtaining it on your own. Visit our Insurance Center to receive a free quote from a large selection of health insurance plans. Here you can compare plans and benefits to find the best match for you.
- Decide where you will live. One of your most significant expenses will probably be housing. Review your options carefully before deciding between renting and owning. Also, don't stretch to live in the most expensive home or apartment you can afford. It's typically better financially to live in less expensive housing so you have more money to devote to savings.
- Set financial goals. After you get the basics in line, take time to consider your long-term financial goals. Your biggest advantage at this age is that you have time on your side. If you start saving now, even small sums can grow to significant amounts by the time you retire.
Digg It!, 
Reddit or 
Bookmark it!
