Earn Money OnlineSound Financial Advice For Recent College, college help, help in college finance


Sound Financial Advice For Recent College, college help, help in college finance Hello friends, I hope you all are doing great. In today’s tutorial, we are going to share some Sound Financial Advice For Recent College Graduates. After four years in college earning that degree, you’re ready to begin climbing up the ladder of your chosen career. Now you have to think about what you want to do with the salary your new job pays. Yes, you want a new car, nice clothes, and a big apartment, but hold on—what you really need is a financially stable future. It starts now.  Some sound financial advice for recent college grads is listed below.

Use Credit Wisely

Credit becomes necessary when buying a new home or car. You begin building a credit history and score by paying monthly bills like your cell phone and electricity. Your credit score also rises and falls according to your student loan payments and any defaults.

The average monthly payment on a student loan is about $280, according to the Colorado Department of Higher Education. By accepting the lowest monthly payment, you’ll have more cash to save. You can choose to pay it off faster, but you lose the savings and the higher credit score you earn by paying on time every month.

Unsecured credit cards are a double-edged sword: They can lead to a mountain of debt that compounds with high interest, but they are also a way to build a high credit score and a resource to use in case of an emergency. Choose a credit card with a low fixed interest rate and low fees. Start with just one, use it wisely, pay it off each month and keep a low credit line ($500 or less). Watch out for low-interest rates with high fees; the fees negate the interest rate. You are entitled to one free credit report a year, too, so take advantage of this and monitor your credit.

The Cost of Living

“When choosing a place to live, look at the big picture before committing to a lease,” says Allen. If you have roommates and the living arrangements agree with you, stay there. Splitting rent and bills saves a lot of money.

If you choose to live alone, consider the actual amount of time you spend at home and the room you need to live. Single living doesn’t take much room, and a two-bedroom apartment may mean you’ll waste money on space no one uses. A one-bedroom or a studio apartment costs less and still gives you room for comfort.

Your monthly bills will cost more than necessary if you don’t comparison shop. If you live in an area with more than one energy provider, you’re lucky, because the competition keeps the price down. And just because your parents or roommates have a bundled cable, Internet and phone contract with a big company, doesn’t mean you have to follow suit. Shop around to find the best deal, and always ask what your monthly bill will be once the promotion ends, as some packages almost double in price after the initial promotion.

The Budget

For budgeting help, use a program like Mint.com. It’s free, and it will organize and categorize your spending for you. Most experts agree that 10 percent of your monthly gross pay is what you should save at a minimum. To make saving easier, set up a savings account and have the amount automatically deducted from each check. You never see it, which makes saving easier.

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