What financial moves should college grads prioritize?

You have officially made it out of college and into the real world, which brings with it a new financial reality. Even if you are excited to start bringing in a regular paycheck, you are likely also facing some new expenses as well, like rent payments and groceries — not to mention student loans.

You may feel like you have plenty of time before you have to start worrying about the financial nitty-gritty. But the sooner you start giving your finances some thought, the better you can set yourself up for the long run.

Establishing a budget is a baseline financial must-do no matter your age or stage of life. Not only is budgeting “simply an exercise of ‘living within your means,'” said The Balance, but it allows you to be “knowledgeable and prepared for whatever life throws at you financially.” Once you know how much you are bringing in each month and where it’s going, you “can avoid credit card debt and work towards goals like travel or buying a house.”

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There are a number of different ways you can go about budgeting, but “a 50/30/20 budget might be a good place to start,” said NerdWallet. With this budget, you aim to “spend 50% of your take-home income on needs including housing, utilities, groceries transportation and minimum monthly debt payments.” Meanwhile, “the next 30% of your income goes toward wants,” and “the last 20% should go toward savings goals and paying down debt.”

If you do not yet have a credit history, “you can start by either opening a secured card or becoming an authorized user on someone else’s credit card,” said CNBC Select. With a secured card, you will need to put down a deposit, usually equal to the card’s credit limit, which will act as collateral in case you do not make your payments. As an authorized user, you will get added to the account of someone who has already established a solid credit history.

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What financial moves should college grads prioritize?

Figure out a budget

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What financial moves should college grads prioritize?

Figure out a budget

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