While the new school year will be starting up soon for college students, those who graduated this last spring are now in “the real world.” This is an important time in a young person’s life, whether they’re working, traveling or still trying to find a job.
A couple of months ago you were here, but adjusting to the real world can be a new lesson in finance.
Since most student loans payments don’t kick in until about six months after graduation, there is some time to get finances in order and an account built up to handle these upcoming costs. Well, Security State Bank is here to help with a few tips for recently graduated young adults.
Try to adjust to a new schedule- whether you have a 9-5 job or your hours are a little different, try to get yourself in a rhythm, especially when it comes to your expenses. Try to keep things like grocery shopping or filling up with gas on the same day every week so you can plan your expenses.
Pay yourself first- if you don’t have a savings account, now is the time to open one up. Shoot for saving 8-10 percent of any income to help build up your account.
Establish good credit- a credit card can be used for good. By making your purchases with a credit card then paying the balance every month, you’ll establish a good credit line. This can pay off big time down the road when you try to get loans for cars or a new home, as long as you pay the balance each month.
Stack your debt- when it comes time to pay off any loans, try this strategy: prioritize your loans by interest rate, not by balance. The higher the interest rate, the faster the balance grows, so this helps keep the interest you pay down. Just make sure you aren’t paying this off in substitute of saving; stay balanced.
The “real world” can be difficult to navigate financially. However, if you come up with a good plan and stay consistent with it, you’ll be able to work through it and enjoy life a lot more. Security State Bank would be glad to help in any way, so please don’t hesitate to contact any of our branches for assistance!