Hey, college grad! Congratulations on your graduation! We know how hard you’ve worked – how you’ve toiled several hours over your papers, studied for your exams, and put so much effort into wowing your professors and peers with your many presentations. Your life is just beginning now, and you can begin chasing your dreams. Unfortunately, with age comes added responsibility, including financial management, a skill that isn’t taught at college.
You’re going to experience some big monetary changes very soon. You’ll be going from living on ramen and mac ‘n’ cheese to getting a big paycheck every month. Without proper management, you could easily begin living above your means, which can then lead to a spiral of bad spending habits.
Take it from us and read these 9 money tips that you should know before setting foot into the real world!
Start Networking – Your network will be pivotal when it comes to finding a job and making future connections, so invest some time into relationship building. Learn from and about your colleagues. Make connections with every level from the people in charge to the people who keep the building clean and everyone in between.
Clean Up Your Profile – It didn’t entirely matter what you would put on Facebook about 10 years ago, but now a reported 86% of potential employers will look at your social profiles. Take some time now to clean up your online presence a bit so your potential employers will be impressed with how you present yourself.
Make a Budget – It’s never too early to make a budget! Make one even before you get your first paycheck, and do your best to continue living like a student, setting money aside for your future goals.
Create an Emergency Fund – As we know here at Madison Mutual, anything can happen. That’s why it’s important to establish a rainy day fund as soon as you can. This will help in the event of a sudden job loss, sudden onset of illness, unexpected car troubles, or any other surprises that might sneak up on you.
Plan for the Future – You might not know where you want to be and what you want to do in 5 or 10 years, but you should start thinking about it and saving some money for any future goals, whatever they might be.
Manage Your Debt – If you’re a recent college graduate, it’s safe to say that you probably have some student loans or credit card debt to pay off. If this is the case, start paying them off as aggressively as you can, starting with the accounts that have the highest interest rate loans.
Stay Out of Debt – Debt can be unavoidable at times, but it’s very wise to stay out of it as much as possible. Learn the pros and cons of credit cards, and refrain from purchasing anything you can’t afford. If you want something bad enough, save up for it.
Build Up Your Credit – Your credit score is used for several different things in life from utilities to insurance companies to getting a loan for a car or home. if you haven’t started now, begin working on building your credit. You can get started by opening one credit card (even if it’s a card to your favorite store) and making payments on time.
Don’t Discount Insurance – You might think that you’re too young for insurance, but really, anything is possible. Don’t skimp out on insurance. Accidents happen, and you’ll want to be covered in the event something does occur!
Thinking about signing up for some insurance? Not sure which steps you need to take? Stop by Madison Mutual Insurance Company or call us at 1-800-766-MMIC to get started! We’ll make sure that you’re adequately covered and that you understand the process along the way.