Young grads must realize that financial independence can definitely give confidence to face the world on their own. Since young graduates will be starting out on their own soon, they need to understand how to manage their finances from start.
The first step in managing finances is to create a budget. This will help to understand the current financial status and whether it is sustainable or not. It will also reveal, for grads, how well they can afford a comfortable lifestyle at all times.
Most of the grads who pass out from college may need to pay off their student loans from the time they start a career. Therefore, remember to collate information like amount due, loan interest rates, when debt repayment begins and the available repayment plan options. It is important to start off by paying the monthly dues without fail. This way, the student loan amount can be paid off without any hitches. There are also provisions for forbearance ad deferment that will help to postpone payment of loans by another six months to one year.
Those who are lucky enough to not have a student loan to repay may start off by channeling their earnings into corpus fund building. Retirement accounts like IRA or recurring deposits or life insurance is the best place to start off the savings spree.
A $3000-$4000 credit balance to repay is quite common among young grads now. Credit payments must be addressed along with student loans and should be paid regularly and timely (to avoid late charges). Looking for an alternate, temporary job that suits the primary working condition is ideal to pay back loans/credit amounts. Monster.com and Yahoo Jobs are job sites where temporary jobs are advertised.
And finally, do work out on housing, food and transportation issues and keep them as minimal as possible. A group of young grads can rent out an apartment, use a single car for transportation and can even take turns to buy household stuff. This way, the monthly cost for food-housing-transportation can be brought down immensely. - 30224
The first step in managing finances is to create a budget. This will help to understand the current financial status and whether it is sustainable or not. It will also reveal, for grads, how well they can afford a comfortable lifestyle at all times.
Most of the grads who pass out from college may need to pay off their student loans from the time they start a career. Therefore, remember to collate information like amount due, loan interest rates, when debt repayment begins and the available repayment plan options. It is important to start off by paying the monthly dues without fail. This way, the student loan amount can be paid off without any hitches. There are also provisions for forbearance ad deferment that will help to postpone payment of loans by another six months to one year.
Those who are lucky enough to not have a student loan to repay may start off by channeling their earnings into corpus fund building. Retirement accounts like IRA or recurring deposits or life insurance is the best place to start off the savings spree.
A $3000-$4000 credit balance to repay is quite common among young grads now. Credit payments must be addressed along with student loans and should be paid regularly and timely (to avoid late charges). Looking for an alternate, temporary job that suits the primary working condition is ideal to pay back loans/credit amounts. Monster.com and Yahoo Jobs are job sites where temporary jobs are advertised.
And finally, do work out on housing, food and transportation issues and keep them as minimal as possible. A group of young grads can rent out an apartment, use a single car for transportation and can even take turns to buy household stuff. This way, the monthly cost for food-housing-transportation can be brought down immensely. - 30224
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