Paying for college probably wasn't easy, but now that you've graduated it's time to get even more serious about financial responsibilities. The first thing you should do is set a budget that helps you meet your monthly costs. The best time to do this is right after you've agreed on a salary from your first job. You'll need to list all of your living expenses and subtract them from the amount of pay you'll bring home after taxes. What's left is disposable income, or money to play with. Here are some more pointers:
1. Never pay bills after the due date. There are fees and interest charges attached to balances when you miss your due date by even a couple days. What's more, your almighty credit report could take a hit as well. If you're not sure why a respectable credit rating is important, try getting a car loan or a lease on an apartment without one. If your credit score is good, you'll likely see better rates for car insurance and loans, too.
2. Don't get carried away with credit cards. While you may be old enough to obtain a credit card without a co-signer, you need to demonstrate true restraint if you don't want to wind up over your head in debt. It's a good idea to accept a credit card as a way to start building a positive credit history, but be sure to pay the full balance every month. You'll avoid paying interest and won't find yourself buying more than you can afford. Using a credit card for online or large item purchases is smart because you can dispute the purchase if something goes wrong, but don't let yourself linger in paying off the balance.
3. Save, save, save. It's hard to find money to tuck away for a rainy day when your living expenses come alarmingly close to your net pay every month, but it's a good habit to get into. If you have some savings, you won't have to go into debt when little emergencies like car repairs creep up. The easiest way to save is through a savings program, like a 401k, through your employer. You won't even miss it from your check and it grows faster than other types of savings because the employer chips in as well.
4. Keep your eye on your checking account balance. The biggest culprit in overdrawn accounts is the debit card. Don't confuse it with a credit card - the money comes directly out of your checking account. If you don't keep a log of what you've spent with your debit card you might find that you've spend more than you have. The result is nasty overdraft fees that multiply with every single usage. Imagine a drive-through burger ending up costing you over $40 by the time you add the fee.
Independence, financial and otherwise, is what you've worked so hard for all these years. Protect your identity by keeping your social security number to yourself and shred your mail with financial account numbers on them. Spend only what you have and push yourself to save along the way. It isn't always easy to be financially responsible, but it is always rewarding.
1. Never pay bills after the due date. There are fees and interest charges attached to balances when you miss your due date by even a couple days. What's more, your almighty credit report could take a hit as well. If you're not sure why a respectable credit rating is important, try getting a car loan or a lease on an apartment without one. If your credit score is good, you'll likely see better rates for car insurance and loans, too.
2. Don't get carried away with credit cards. While you may be old enough to obtain a credit card without a co-signer, you need to demonstrate true restraint if you don't want to wind up over your head in debt. It's a good idea to accept a credit card as a way to start building a positive credit history, but be sure to pay the full balance every month. You'll avoid paying interest and won't find yourself buying more than you can afford. Using a credit card for online or large item purchases is smart because you can dispute the purchase if something goes wrong, but don't let yourself linger in paying off the balance.
3. Save, save, save. It's hard to find money to tuck away for a rainy day when your living expenses come alarmingly close to your net pay every month, but it's a good habit to get into. If you have some savings, you won't have to go into debt when little emergencies like car repairs creep up. The easiest way to save is through a savings program, like a 401k, through your employer. You won't even miss it from your check and it grows faster than other types of savings because the employer chips in as well.
4. Keep your eye on your checking account balance. The biggest culprit in overdrawn accounts is the debit card. Don't confuse it with a credit card - the money comes directly out of your checking account. If you don't keep a log of what you've spent with your debit card you might find that you've spend more than you have. The result is nasty overdraft fees that multiply with every single usage. Imagine a drive-through burger ending up costing you over $40 by the time you add the fee.
Independence, financial and otherwise, is what you've worked so hard for all these years. Protect your identity by keeping your social security number to yourself and shred your mail with financial account numbers on them. Spend only what you have and push yourself to save along the way. It isn't always easy to be financially responsible, but it is always rewarding.
About the Author:
Jon Ross is an economics instructor who runs seminars on scholarships and online degree programs for adults.
Aucun commentaire:
Enregistrer un commentaire