College graduation is an incredible accomplishment and one that should be celebrated. It also marks a recent college grad’s transition into the “real world”. While that thought can be scary for some, it is also an exciting time. If you’re entering the workforce, you’re going to be making a living salary likely for the first time in your life.
Gone are the days of referring to yourself as a “broke college student”. Instead, you’ll be taking on a whole new set of responsibilities, which means adapting to this new chapter of your life and developing a plan that you can stick to. Here are some of the things you can do as a recent college graduate to help you navigate the “real world” on a budget.
Develop a Budget You Can Stick To
Coming up with a budget is important, but what’s even more important is to find one that works for you and that you can stick to. After all, the purpose of a budget is to better understand your finances and achieve financial security.
As a recent college graduate who has gotten a full-time position, it can be overwhelming to suddenly have an income. You’ll suddenly have some money to do all of the things you’ve wanted to do, but you’ll also have responsibilities you must pay for as well. Remember, as an adult you’ll have to be responsible for things like rent, utilities, food, etc.
Making these essentials a priority from the beginning will help you in the long run. Once you’ve worked them into your budget, you will then know how much you have left over for the fun stuff you’ve been wanting to do.
Find Affordable Adventure
After being on campus for a considerable amount of time, you might be seeking a bit of wanderlust. However, extensive travel and life in a luxurious city might not be in the cards for you right after graduation.
Although many recent grads may find themselves “boomeranging” back home with their parents, that doesn’t necessarily have to be the case for you. While there are some financial benefits of moving back home, like saving on rent, you ultimately need to do what’s best for you, whether that means going home or relocating.
Still, that doesn’t mean you can’t embark on an adventure to a new location eventually. Instead of choosing to relocate to overpopulated and overpriced destinations, consider moving to an underappreciated and less expensive U.S. city. In one of these locations, you can get the city lifestyle, adventure you’re craving, and still maintain your budget.
Review and Resolve Any Debts
Chances are that you’re graduating college, like many others, with some amount of student loan debt. Your school more than likely enforced exit counseling in regards to your loan before you could graduate, however, it’s likely you were confused or felt less than fully informed afterward.
Often, you’re not expected to begin making payments the day you graduate. You may have a grace period lasting six months after graduation and this is the best time to begin planning. Don’t pretend your loans don’t exist during this period. Instead, do your research and know what’s expected of you.
Knowing what your monthly payment will be in advance can help you work that amount into your budget. Start putting that monthly payment aside now, so you can be used to life without that extra money. If your monthly payment is too high for you to make, consider ways to refinance your student loans to make things more manageable.
Devise a Plan for the Future
One of the most exciting, but also most terrifying, things about graduating from college is having your entire future open and in front of you. This is the absolute best time for you to start thinking about your future, what you want from it, and when you want it. Of course, you should also keep in mind that things change and because of that your goals should be fluid.
For example, if you would like to own a home in the next five years, it’s important for you to know what that entails. Something you will want to begin paying attention to immediately is your credit score. You will need a good credit score to buy a house and any debt you have will impact your score. This is why you should do everything you can now to maintain your good credit or repair your bad credit score. For example, for credit repair, you could check out a company such as Credit Repair Cloud, which may be helpful.
Another future endeavor you should begin planning for immediately is retirement. Believe it or not, your actions now have a great deal of impact on your life once you reach retirement age. While interviewing for jobs, be sure to ask about the company’s retirement plan options. Once you’re hired, you should begin investing in that plan immediately so you can yield the best results later in life thanks to compounding interest.
Look for Alternate Ways to Make Money
Should you discover some gaps in your budget or if you have a need for some extra spending money, you can always look for alternate ways to make money. Today especially, there are plenty of opportunities available to you to earn some extra income.
Immediately after college, you’ll have a unique opportunity to take stock of things you currently own. You’ll probably have little to no use for all of your books, and believe it or not, you can actually make money off of your college textbooks by selling them on various platforms. You can also look toward any family friends or friends still in college for opportunities to sell things you’ll no longer need, like the futon you had in your college apartment that served as a couch, or lightly used kitchen appliances. After that for a quick turnaround, you can sell clothing you no longer wear to second-hand stores or even sell them yourself online.
For a solution that can potentially earn you a more steady alternate income, but might take a little longer, you can turn to the internet. Micro-influencers on social media platforms like Instagram can either gain cash or product through promoting a brand’s items on their profile. However, keep in mind that this route can take time to build up the presence needed to be noticed by big brands. Of course, you can also always take the old-faithful route of looking for part-time employment to supplement your income.
Conclusion
As a recent college graduate, you have your whole future ahead of you. Although that is exciting, it can also be a scary thought for many. To go from identifying as a “broke college student” to then having a job with some money to burn, can feel liberating. However, you now will have expenses and responsibilities to consider and take into account.
This is where budgeting becomes essential with post-graduation life. The “real world” is freeing but also presents some financial limitations. Having a budget will help keep you on track so you can navigate paying your rent, other bills, and keep up with potential student loan debt. This can also help to alleviate some of the stress that comes along with adult finances. Knowing what you have coming in, going out, and what’s left, can provide you some relief and also allow you to do the fun things you’ve always wanted to.
