You've recently graduated from college. Congratulations! Over the past four years, you have grown into an adult, and now you are ready to set out on your own. That means it is time to start adulting! And what better way to start adulting than by getting your finances under control?!
When it comes to money, a lot of people think "I'll worry about it later." Reality is, later is now! Kicking the can down the road is never the best option when it come to financial management. In fact, procrastinating is the opposite of managing your money. By putting off tomorrow what you can do today, you are letting your finances manage YOU. That doesn't sound like much fun, now does it? So, without further ado, it is time to understand the best money management practices for keeping yourself and your accounts safe.
Being in control of your financial situation allows you to call all of the shots. You have the ability to track, budget, spend and save for retirement. Retirement?!?! Yes, I get it. As a new college grad, this seems crazy to think about and is probably not even on your radar, but hear me out. By saving even the smallest amount now will get you thismuch closer to the luxury of retiring without worry and dare I say, maybe even provide you with the opportunity to retire early.
Once you come up with a strategy to help you budget, manage and responsibly save for your future, you will be well on your way to adulting like a pro. Some people find that sites like Mint help them keep track of finances while other people prefer the tradition excel sheet. Regardless of which works best for you, stick to it once you find something that works.
Ever heard of the 50/20/30 rule? This general rule of thumb is how you should allocate your paychecks. 50% of expenses are considered "essentials" and are nearly the same for everyone: housing, food, transportation costs and utility bills. The percentage lets you adjust, while still maintaining a sound, balanced budget. Remember, it’s more about the total sum than individual costs. 20% of your income should be put towards your savings & debts. This includes savings accounts, debt payments such as student loans and credit cards, and any other funds. 30% can be put towards personal expenses such as clothing, day-to-day incidentals, trips and memberships. The great thing about theses percentages is that you can adjust them to your lifestyle. Some would rather put 30% towards savings & debts and 20% for any personal expenses (always a wise idea!). Just remember, when you get paid, pay yourself first! Whatever your savings goal, put that money aside before you are tempted to spend it on something you didn't budget for.
Below we have infographic that can help you track and manage your money and keep yourself out of any financial trouble. It's extremely important to keep tabs on all of your accounts to avoid any unfortunate events. For more information on how to manage your money or post-graduation tips, follow our blog!
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