As a senior in college, you’re probably preparing for your higher education journey to come to an end, but it’s important to make time to ensure you’re on the road to financial stability before you turn your tassel at your commencement ceremonies.
Create a budget
Even if you’re still searching for your first post grad job, building a realistic budget is a good starting point to building good financial habits. You can start with the basic 50/30/20 budget model and once you grasp the foundation, you can evolve your budget as you become more comfortable with crunching numbers.
Stay on top of student loans
Many college students will have some amount of debt from their student loans by the time graduation rolls around, but having this debt on your credit report isn’t the end of the world. Start getting familiar with paying your student loans by logging into your lenders payment portal, reviewing details about the minimum payment, automatic payments, interest rate, due dates and total amount owed. Understanding your repayment options can help make paying off your loans seem a little less daunting. If you’re struggling to find work or make your student loan payment, look into requesting a deferment or switch to an income-driven repayment plan from your lender.
Practice healthy credit habits
Your credit score can have a positive or negative impact in your adult financial life. You’ll want to start establishing a good credit history so you will be credible to lenders when it is time to buy a new car, a home, or even rent an apartment. Regularly check your credit report for errors, pay your bills on time and keep your credit utilization below 30%. The combination of good credit-building practices and avoiding common pitfalls and missteps will help you build and keep good credit.
Build an emergency fund
As you move through life, you can expect to come across roadblocks that will cost you an arm and a leg. This is when an emergency savings fund can help you cover this unexpected expense without maxing out a credit card and protect you from high interest rate personal loans. If you’re wondering exactly how much to save, the general rule of thumb is to save enough to cover 3-6 months’ worth of living expenses.
Save for retirement
While you may only just be entering the workforce, it’s important to start saving for your golden years now by taking advantage of the benefits that come with full-time employment. Your employer may offer a 401(k) and even match a portion of the amount of money you put in, giving you free money toward your retirement.
Don’t stress if you don’t have your financial life completely figured out right after college. As long as you actively work towards bettering your financial health and understand your spending, the more successful you will be.
At AFFCU, we love to see our members succeed and achieve their financial goals. From building a budget to saving for a home, we have the products and services to help you achieve your goals. Learn more about the perks of AFFCU Membership and apply today.
