Graduating from college can be one of the most exciting milestones in any young person's life. Hard work truly does pay off and depending upon one's chosen occupation, college can open up many doors. However, an awareness of certain financial strategies can particularly come in handy for college graduates.
While the aforementioned graduates may have worked part-time jobs during their years of academia, there are still some critical points which they are unaware of, which is to be expected. Moreover, it's worth noting that the game completely changes once students leave college and enter the real world.
This is why understanding and heeding the following tidbits of financial advice will prove to be extremely advantageous.
Pay off Student Loans ASAP
One of the most important steps for college graduates is paying off their student loans as soon as possible, as affirmed by
. While some grants and scholarships do provide full rides to university, most college students end up taking out loans. After graduating from college, the now former students are expected to pay back their loans. Moreover, there are usually interest rates which are added on top of remaining, unpaid loans after a certain period of time.
Virtually everyone has heard the nightmares of individuals who have taken decades (or a lifetime) to finally pay off their loans. Despite the necessity of loans (for most people) to attend college, they are still a form of debt and should be taken care of. College graduates can tackle their loans by getting part-time jobs, freelancing, or otherwise earning income to return the previously borrowed capital. Failure to do this can subsequently breed longterm and undesirable consequences.
Start Building an Emergency Fund
recommends that new college graduates immediately begin putting money into a savings fund. Between 5% and 10% of one's regular payments are generally the advised amounts; not only does this built positive financial habits, but establishing a healthy emergency fund moreover ensures that one will have their bases covered in the event of unforeseen occurrences. It is better to have something and not need it than to need something and not have it. Proactive, preventive maintenance is always wiser than reactive damage control.
Do What You Love
Virtually everyone wants to do well in life and make money. However, a huge part of success is being passionate about one's career or occupation. Now, there are some individuals who maintain that passion is overrated, but they're wrong. Genuine passion is often a motivating factor; it's the source which drives people to work hard, overcome obstacles, and keep pushing forward during times where others would have given up.
Sometimes, unearthing one's passion can take awhile. Many people take certain classes for fun or try new hobbies. One of the best ways for college graduates to tap into their passions and interests are to consider acitivities they would partake in, even without being paid. While everyone has to make a living, the foregoing consideration can be quite eye-opening. Nine times out of ten, our passions are our callings. Once they have been recognized and identified, the process of building a career can commence.
By Gabrielle Seunagal