For years you lived on a college budget, look for meals where you can, buy gas trip by trip, and never once think about the term “401(k).” Getting that first paycheck from your employer is going to feel like more money than you know what to do with. But bBefore you start dreaming of fancy cars and beach vacations, make sure you have yourrun ducks in a row with these ten financial tips.
Know your value in salary negotiations
Negotiating your first salary is difficult, but you are not without leverage. Use the resources at your disposal, like your college career center and other recent university graduates in your area, to assess whether the offer made to you has sufficient market value. Otherwise, you definitely don’t need to take the first offer that comes along.
Be realistic about the move
After four years of freedom, you probably don’t plan on going back to live with your parents. But if it’s an option, it’s worth considering, especially if you’re among those struggling with significant debt. Saving on monthly rent payments saves you money and repay the loans at a higher price impressive speed. Outraged, you’re going to want a nest egg before you start signing a lease.
Match your company’s 401(k) contribution
When you get a job, you will need to decide what percentage of your salary you want to spend on your 401(k) pension plan. Your employer will most likely offer to match your contribution amount up to a specific percentage; you want to make sure you contribute at least that amount. If they offer up to 3%, contribute at least three%. To do anything else would be to leave money on the table, and the interest on that money will accrue significantly over time to prepare you for retirement.
Open a Roth IRA
I know these terms all sound scary and confusing, but they are not. A Roth IRA is just an account you can contribute up to $6,000 per year to invest and not having to pay taxes on earnings when you withdraw them in retirement. Put the full $6,000 every year if you canand invest in long and low-risk securitiesterm investments.
Do Your Health Insurance Due Diligence
If that’s an option for you, stay with your parents. health insurance for as long as possible. If not, really consider which of the plans offered by your employer is right for you. For example, you may not need the most expensive option if you don’t expect to need a low deductible. And if you don’t know what that means, here is a good starting point.
Build a credit score
Your credit score is important because ideally you will one day make a purchase for which you will need to take out a loan. Building good credit isn’t difficult, it can take some time. You can build your credit score by making payments on time on a low limit, secure credit card, pay your utilities, and even declare your rent (if you have a rent payment). start early, and thank you later.
Create a budget
It’s scary at first, but it’s important to know how much money you’re spending and for what. Many like the 50/30/20 rule:S50% dependent on needs (such as rent, groceries, and minimum loan repayments)spend 30% on splurges (such as travel, takeaway, and concert tickets)and spend 20% on savings and additional payments on high-interest debt.
Understanding your student loans
Once you havee graduate, you usually have a six-one-month grace period before having to start repaying these student loans. Sit down and figure out how much you have in federal versus private loans, compare interest rates, and come up with an action plan for how best to pay them back.
To buy a car
Unfortunately, because of inflation, now is not the right time to buy new or used cars. If you think you can do without it, it might be the right decision. But if having a car is not negotiable, do not forget that you will have to take into account in your budget the recurring items, such as auto insurance, gas, and frequent vehicle maintenance.
Plan money for fun
Saving money is good, and IIt is important for your future. But it’s important to incorporate some “play money” into your budget. Find small ways to splurge by purchase these concert tickets, where to go at this trendy restaurant—it is enough not to go into more debt to do so.