Financial Advice to Fresh College Grads

When you’re fresh out of college, chances are you’re currently holding thousands of dollars in student personal loans, which automatically started racking up interest rates the moment you walked across that podium. But with so many tasks at hand such as finding a job first, paying back these loans gets placed in the back burner.

But being young and full of zest and ideals for what your new found freedom should be, you can make terrible mistakes along the way that could get you strapped in the rat race for years. So here is some friendly advice:

Continue Living Like You’re Still in College (at least only for a while)

Let’s face it; no graduate wants to get stuck living in dorm rooms and with unhealthy grubs for foods. After college, your vision is set on a nice apartment, a new car, and a dream job. But here’s reality, these take years to achieve so do not force yourself to apply for a personal loan when you still can’t, dine finely when you’re on the lookout for a better job, and are still living off a college-style allowance.

The smartest solution to this is ‘live as if you’re still in college’. That means eating cheaper, but preferably healthier, foods. Ditch the fine dining idea for a while and resort to cheap beer if you can’t afford champagne yet. This does not symbolise failure but financial wisdom. Live within your means and you’ll surely have a good grasp of your life in the future.

Do Not Buy Things for Self-Gratification or Worse- Showing Off

I know you want to show your parents and folks back home that you made it. There’s nothing wrong there. But buying a brand new car, when you’re just starting out and posting it on Facebook, is not the best way to do this. It’ll leave you paying for it for years with just your job to back you up. Being a newbie, what if your first job sucks and you want to get out so badly? You won’t be able to because of the car and looming debt risk, right?

So my advice is to use your trustee old college car, live in apartments with roommates, and save. Keep your plans listed and approach them one by one. And if you should have to pay, do so in ‘cash’.

Realise as early as now that success is not measured by the material things you own. You are successful if you find comfort in what you’re earning and are free from financial shackles.