Funding Your Future: Financial tips after you get your first job out of college

Rachel Langlois gives us pointers on how to make the most of your first job out of college. For more information, go here.

• The average graduate in 2015 is starting with $35,000 in student debt.

Ok, let’s start with some of the things you should DO:

• Budget, typically loan payments start six months after graduation.
  • Get an idea of your cash flow
  • 50/30/20
    • Start saving now and building that habit.
    • Set-up automatic transfers, you don’t miss what you don’t see
    • 3 types of saving: Emergency, Retirement, and something you want
      • Emergency fund
        • Plan for the possibility of losing your job or needing to pay for relocation, etc.
      • Retirement
        • $2k/mo at the age of 22 vs. 32 = difference of $160,000
        • Take advantage of employer match, set up even if not eligible yet
        • Set up as a percentage of pay so that it increases naturally as your income does
      • Make sure you are amply insured, protect yourself against financial ruin
      • Learn to cook, brown bagging it= $5 x 5days/wk =$1300/year

Here are things you shouldn’t do:

• Don’t ruin your credit
  • Pay bills on time
  • Set up automatic payments
• Don’t increase your standard of living for as long as possible. Keep living the same, and instead focus on saving.
  • Don’t get into debt trying to live like your parents. New car, travel, etc.
    • Make payments into a savings account
  • Pay cash for things
    • If you can’t afford it, don’t buy it. Look for second-hand items.