5 Things to Do with Your Money in the First Five Years After Graduation
With graduation over, it is time to start thinking about the future and how you should handle your finances. Here are five things to do with your money in the first five years after graduation, according to Forbes.
Build a cash cushion.
Emergencies happen. Cars break down, jobs get lost and family members get sick. Create a savings fund so these situations won’t drain you financially.
Start thinking about retirement.
If your employer offers a 401(k) plan, open an account and invest at least enough to take full advantage of your company’s matching contribution.
Crack down on your credit card and student loan debt.
Build yourself a plan and set a deadline for when you want the debt to be completely paid off.
Learn five practical skills.
Paying for convenience is fine, but it can get expensive. Commit to learning a few practical skills that can save you money in the long run. Knowing how to cook a few basic meals, changing a tire, filling out a tax return or painting your own nails are just a few examples. Don’t allow not knowing how to do something to force you to pay for service.
Save and pay for something you really want.
Don’t be afraid of non-essential spending. Saving for something you truly want, then buying it shows you have control over your finances and can help you stay motivated with other goals.