Graduating from College
Congratulations! You just graduated from college! It truly is an exciting time. You are done with school and have a world of possibilities. All your dreams and goals now feel like they can be achieved and you can take on the world! Graduating from college can also be a confusing time. There is so much going on and everyone is taking different paths. For many, the thought of next steps in life can be a challenge. It's important to remember that everyone has a different story to tell. It can be hard though to not compare ourselves to our fellow graduates and the steps they are taking. It is best to have a plan upon graduating that will best set you up for short and long-term success. Let's take a look at some action steps you should take upon graduation.
Live on a monthly budget
Your first thought is probably getting that new job, in the nice office, wondering about the fancy coffee that is served. We will get there, but first let's talk some budgeting. While it may not be the first thing on your mind, a budget is very important. For example, if you plan to have high expenses, you'll need an income that can support that. Even if you plan to live nothing, budgeting still is key. A budget sets the lifestyle you want to live. Creating a budget is an art, more than a science. When creating a budget, start with your income. You want to assign each dollar to each of your expenses: rent, transportation, food, debt payments, etc. Then you can see how much you are spending in each category and how much you are saving. The best part of the budget is that you control each category. Want to spend more on food? Go right ahead. Want to be more aggressive in paying off student loans? Add more to your debt category. Take control of your finances and your lifestyle.
Secure a job
You went to college for a multitude of reasons. Hopefully number one was to get an education that would prepare you for a career. Do you already have a job lined up? Great! If not, no worries! Many students graduate from college without having signed a job offer letter. The important thing is to make finding a job your top priority. Even if you plan on taking time off, you should still have a plan for a job search, updating your resume, and looking through different company websites and job boards. You should remember two key elements: don't settle and don't be scared. It may take a while to find the right job for you. You want to make sure you are going to a good company, that will pay you well (including benefits), and the job lines up with your early career goals. Another thing, the job and company you end up at won't be your forever job and forever company. Nowadays, employees change companies, and even careers, in a much more frequent fashion. So don't feel like this decision will always be permanent.
Create a debt free plan
When you hear college student, what is one thing that always comes to mind? It's probably student loans. Student loans prevent you from living the life you had envisioned. So, it's time to tackle any loans. Get them out of your life as soon as possible. Let's say your minimum payment on a monthly basis is $500. On a yearly basis, your minimum payment then is $6,000. Imagine what you could do with an extra six grand every year. How about over five years? Ten years? Sadly, it does take some graduates this long, or longer, to pay off loans. Attack the debt and free up your income to save for a new car, a house, or be able to afford that vacation you've been dreaming about. Still not convinced your loans are a problem? Let's say you go out to a wonderful dinner. At the end of the meal, the bill arrives and is for $100. The waiter says the bill can be paid now, or you can come back and pay your bill at another time. You're excited because after all you had some shopping to do and a few other items in mind. A few weeks later, you return to pay your bill. The waiter tells you that you now owe $500. And with that news, your heart drops to your stomach. The same meal could have been paid, over, and done with for $100. Instead, you paid 5x as much. Student loans work the same way with the interest they accrue over time.
Be careful with big decisions
Getting a job and debt free plan are the first two important steps. Now a word of caution: be careful with any big decisions or investments. A lot has happened since you started senior year of college. Life moves fast during this time. Avoid big moves or large purchases if they don't line up with your goals. You don't want to make a bad decision that could negatively impact you for years to come. For example, you don't need to run out and buy the newest luxury model car. Instead, have someone you are accountable to. Someone you consult on big decisions and who understands your long-term goals.
To recap, you have a to do list upon graduating. The important thing is to have a plan and to follow through on the plan. Since you are fresh out of school, control your expenses. Attack any debt to quickly get rid of it. It may take time, but it will be worth it in the long run. Have questions about graduating and transitioning into the "real world"? Schedule a free consultation today to discuss your situation.