The college class of 2020 has unfortunately graduated into a time of uncertainty. This means it might be a little more challenging to make plans for the future. Having said that, there are still timeless pieces of financial advice that can help you start off in the right direction. After college, it can be difficult to stay in control of your finances, but with the right ideas, you can manage your spending. Here are the top 5 finance tips for college grads in 2020.
Save before you spend
If you can, always put some money away before you spend it. There are several money-saving apps than can help to automate this process for you to make it easier. Make a budget for your savings and stick to it every month. By having a little cushion of savings in your account, you’ll be giving yourself more flexibility for the future. Having some cash in the bank will give you peace of mind. This is a great habit to keep up.
Get professional advice
If you’re looking for financial or careers advice, it’s always a good idea to speak to an expert. Robo-advisors are a good place to begin. You’ll be able to seek financial advice from an automated app that has many benefits. Essentially robo-advisors are online apps and packages which help you to manage your personal finance. You can manage your spending, saving, and possible investments all in one app.
Develop good credit habits
It’s a good idea to develop good credit habits and avoid bad ones now. Try not to build up credit card debt, as this will give you a worse credit rating in the future. Credit card debt is on the rise at the moment as many people are only able to live paycheck-to-paycheck. If you’re already worried about not being able to pay your credit card bills, there are online services that can help you. Look into debt consolidation for credit cards, and start paying off your debt today.
Live within your means
Learn how to create a basic budget and stick to it. Try and save on small things in everyday life. Your college lifestyle will have taught you how to live on a bit of a budget. Keep the same mentality, live with roommates, and don’t splash out on an expensive car or apartment. Calculate exactly how much money is coming into your household monthly and how much is going out.
Don’t let debts and student loans get you down. If you’re worried about your financial position don’t take a job just for the money. This year, you might have graduated into a more uncertain job market, so why not see it as the opportunity to try something new?
Every job is an opportunity for you to learn transferrable skills so always keep your future career options in mind. You have decades ahead of you in your career and certain jobs you could have in the future might not even exist yet.