Tips for New Graduates

Take an honest look at your lifestyle
Take an honest look at your lifestyle, you will find many areas where you can improve your finances and save more money. You Can Do IT!

Consider moving into a smaller place
Look at downsizing into a smaller place to cut down on rent/mortgage and the other expenses that come along with owning a larger place. Better yet stay at home with your parents!

Cut back on small expenses
Some examples of small expenses that can add up are; eating out for every meal, having a drink with dinner, and luxury services that you don’t really need.

Create a Budget
• Creating a budget is the only way to take control of your money. Is your money telling you what to do or are you telling your money what to do. Writing down the income you receive, listing all your bills and putting a name on every dollar and a place to put it will help to ensure you spend your money wisely. Keep track of all your expenditures for 4 weeks; make sure you write down every penny you spend. After a week's time, you will be surprised at where your money goes and how much you spend unnecessarily. Allow yourself some blow money each week and put this in your budget, just like your rent or car payment. Blow money is your money. Just don’t blow too much!

Emergency Fund
• Build up an emergency fund. Ordering pizza for the crew is not an emergency. It's only for true emergencies such as car repairs, medical emergencies or to avoid having the electricity cut off. The best way to avoid credit card use is to build up an emergency fund of at least $1,000. Ultimately build it up to cover several months living expenses. I know you have you dream job, but have you seen the unemployment #’s?

Pay Off Debt
• Pay off credit card debt or student loans as soon as possible, and start saving for a down payment on a home or a new automobile. Inquire about the Income Based Repayment Plan. Debt Snowball! Apply any extra money you earn during the month to your smallest debt. As soon as you pay this debt, you can use the money to pay the next largest debt. If you do this with all your debts, and don't accrue any others, you will be living debt-free.

Live Frugally
• If your goal is to build wealth and retire early, you need to live within your means. This does not mean doing without but shopping wisely and avoiding unnecessary spending. Clipping coupons, making your own coffee at home before work, and visiting websites to compare prices on items will help you save. Just a small amount of time each week will add up to a lot of money saved.

Avoid Buying New Car
• Stop! Do not pass go, do not collect $200. Cars depreciate and you lose value on a new car as soon as you drive it off the lot. Save for a large down payment on an automobile and shop for one that is 2 or 3 years old.

Save for Long Term Goals
• Start saving for retirement as soon as you become employed. It is much easier to set aside a small amount each month for retirement now when you are young than to find out when you are in your 40s or 50s that you will not have enough money to retire and live. Dave Ramsey says to live like no else now so you may live like no one else later.


2 comments (Add your own)

1. Jonatan wrote:
Ah I well remember when the Edsel came to town. It was the car eyverone was waiting for. Until they saw it. There were some extraordinarily crude jokes relating to the Edsel's appearance. I personally didn't have a problem with its looks, but I only knew one person who actually owned one (briefly) and they had constant problems with it. They claimed it spent more time in the "shop" being repaired than on the road. They only kept it about a year. The FORD dealer was reluctant to take it as a trade in.I think it's awesome that you have photographs of the same exact car covering different "stages" of the car's life. It doesn't appear that time and weather have been kind to it, but maybe it feels lucky to have not been smashed into a pancake like most of its brothers and sisters. Your Edsel is, by comparison, a survivor!

Mon, September 17, 2012 @ 6:15 AM

2. rpoxtdmnd wrote:
wyYNdH pwsdqfaaajsw

Tue, September 18, 2012 @ 4:02 AM

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