Written by Alayna Okerlund, Content Management Specialist for BestCompany.com
Graduation is a major personal milestone. It proves you received an education and that you are ready to take the next steps in life.
Your next life steps could be starting a new job, moving to a new city, or beginning a journey to find what you are passionate about. It’s no surprise if you are excited by the very thought of post-graduation life.
Although it’s normal to get excited about the possibilities of your future, don’t forget life’s realities like your financial responsibilities. Finances might not be the first thing you want to think about when it comes to planning your post-graduation lifestyle, but you’ll realize sooner than later that they will likely play a key part in your life plan.
Consider taking these three important financial post-graduation steps before you start making your dreams a reality to ensure you’re starting your new path the right way.
The first step you should take after graduation is to perform your own financial audit. Auditing your finances can help you not only figure out where you currently stand but also help you determine what future financial steps you should take.
You can perform your own personal financial audit in a few ways. There isn’t one perfect way to conduct a personal financial audit, but if you are having a difficult time knowing where to begin, start here:
To make your personal financial audit count, be as specific as you can. Don’t hesitate to go more in-depth with your audit and add to the bulleted list mentioned above.
Creating a new budget after you graduate should make sense. After all, you are most likely starting a new job or changing your life in a way that calls for a new budget.
When creating a new budget, ask yourself the following questions:
The questions listed above aren’t the only questions you should be asking yourself when you’re in the process of creating a new budget. If you have completed your personal financial audit (step one), you likely have more specific questions you can ask yourself, and therefore, can create a budget that better fits your specific needs. Asking yourself questions like the ones mentioned above can help you make sure you don’t forget anything when you create your new post-graduation budget.
The goal is to create a realistic yet effective budget that you can follow right after graduation. Although you can use this new budget as a foundation for your future budgeting efforts, you should be regularly adjusting and reviewing your budget to make sure you stay on the right financial track.
Credit might not be on the top of your list of financial priorities, but it should be. Although credit may not have had a major effect on your life while you were in college, it’s almost a guarantee that it will affect your post-graduation lifestyle. It can affect what type of car you drive, what type of apartment you can rent, what home you can buy, and much more. Therefore, it’s important to get familiar with your credit situation as soon as possible. If you’ve put your credit on the back burner until now, you definitely should focus on it before you start making major life decisions.
Here are a few things you can do to get more familiar with your credit situation and good credit practices:
In regards to credit, the more you know, the better. Credit can be intimidating, but if you face it head-on now and learn how to maintain a good credit score, you won’t have to worry about being overwhelmed in the future. Not to mention, you will be able to take full advantage of all that good credit has to offer.
Graduation is an exciting part of life. It’s the time to celebrate and prepare for your future. To create the type of future you’ve always dreamed of, you need to have control of your finances. Following the three steps above and doing what you can to add to your financial knowledge will help you have an easier time adapting to your new post-grad life.
Whether it’s following a debt repayment plan or repairing your credit, consistently taking steps to work on improving your financial situation can play a big part in the creation of your bright financial future.
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