Handling your finances after graduation is key, as this will likely be the first time college graduates have to worry about handling their finances alone. You’ll have to plan to pay for your rent, auto insurance, gas, food, and many other needs.
College graduates can set themselves up for success with the right financial wellness tips, and this article by Delaware Title Loans, Inc. will provide you with five of the best. These tips will help you manage your finances to make the most of your money as you begin your independent adult life. We will also explain how you can use car title loans to handle financial emergencies.
What Are Five Financial Wellness Tips For Recent College Graduates?
Finishing college and starting your career can make you feel like you’re on top of the world! Be careful, as how you manage your money the first few years after graduation could make or break your financial future. You need to make prudent financial decisions to set yourself up with a good financial situation in the future.
Here are five financial wellness tips to set you up for success as a recent college graduate:
1. Create A Budget To Track Your Finances
The first and most important thing you must do straight out of college is to create a budget. That will serve as the foundation for your entire financial well-being.
A budget is a written plan and record of how much money you bring in and your expenses. For example, you can account for your salary at your job and the money you spend on rent, shelter, gas, food, and utilities every month.
The importance of a budget is that it shows how much money you need to make every month and whether you make enough to afford your lifestyle. After writing everything out, you can get a clearer picture of expenses to cut to live a more comfortable financial life.
2. Manage Your Student Loans Wisely
Student loan payments are one of the biggest parts of a college graduate's financial future. These loans can cost tens of thousands of dollars and take years to pay off. Thankfully, most student loan institutions give college graduates a buffer period after graduation before they have to start repayment.
Use this time wisely to develop a plan for attacking your student loan payments. Ask yourself a couple of questions to form your plan:
- How much do I owe?
- What will my student loan monthly payments cost?
- Can I afford to pay more each month?
- When do I want to have my student loans fully paid off?
- What repayment plan makes the most sense for my finances?
The standard repayment plan requires fixed monthly payments over the course of ten years. You can choose an income-driven repayment plan with a fluctuating cost based on your income. An extended repayment plan is available for a lower monthly payment, but you will incur more interest.
Focus your attention on paying off your student loans on a schedule that makes sense for you now and in the future. Remember: the earlier you pay off your student loans, the easier it’ll be to focus on your other primary financial goals, like buying a house or a car.
3. Avoid Unnecessary Spending
The early stages of your career can be pretty exciting as you’ll have more disposable income than ever before. While having fun with that money is tempting, you must remember to live within your means and avoid splurging on unnecessary expenses.
While buying a new car, wardrobe, or game system can be tempting, you should start by living within your means. Focus on paying for your essentials, such as living costs, food, and student loan payments. If you save effectively, you can build up money down the line that you can use for the occasional unnecessary purchase.
4. Start Investing Your Money Early
As you navigate the early stages of your career, start investing early. That way, you can take advantage of compound interest, which helps you grow your money over a long period.
The sooner you start, the more your money will grow. You want to invest smartly by starting with low-risk investments. Remember not to over-invest your money, as you likely do not make enough as a recent college graduate to avoid a stock that fails. Investing 15% of your regular income is a good rule of thumb. You’ll still have 85% left over to cover your other costs.
Speak with an investment expert to determine how you should invest early, what investments make sense for someone just starting out, and how you can ramp up over time to continue to make the most of your money.
5. Build An Emergency Fund
Financial emergencies, such as medical bills, auto repairs, and unexpected travel costs, can arise after you graduate from college. Rather than letting them ruin your finances, you should prepare for the inevitability you will have to handle them.
Start saving money for an emergency fund you can take money from when an urgent expense arises. A rule of thumb for emergency funds is to save enough to cover your living expenses for at least 6-12 months.
How Can A College Graduate Get Delaware Title Loans To Manage A Financial Emergency?
You may not have enough time to save for your emergency fund before urgent expenses arise that you need to take care of. If you cannot afford them, you can suffer from late fees or service disruptions.
Delaware Title Loans, Inc. can help recent college graduates with financial emergencies with car title loans. This type of quick cash loan allows you to borrow money against the value of your vehicle using your car title as collateral. You can receive between $300 and $15,000 to pay for your financial emergency.
We keep the approval process quick and easy, allowing you to start the process and receive your money without coming to one of our Delaware locations. All you need to get approved is your driver’s license, lien-free car title, and your vehicle for inspection. Get approved today to receive your fast cash the same day or the next business day.
Contact Delaware Title Loans, inc. To Receive Emergency Cash Today!
As college graduates like you begin your careers, you’ll discover that the world is full of opportunities. Set yourself up for success by following these financial wellness tips to ensure you’re managing your finances in the best way possible.
Delaware Title Loans, Inc. can help you access money quickly through a car title loan if needed to pay for an urgent financial situation. Start anytime by submitting the online form with your details so a representative can call you back soon to guide you through the easy process.
Note: The content provided in this article is only for informational purposes, and you should contact your financial advisor about your specific financial situation.
