Life After College Tips or suggestions

[ADPiShannan]

Just a side note on the Sears card, if you get one, pay it off EVERY month or youre doomed.

Ive read several places it is the hardest to pay off if you have a lot on it and I know first hand it is too. We had one about 2 years ago and we got a freezer on it and a washer and dryer and some other household things and the interest was horrible and it was forever to pay off. Finally I just saved for 2 months all the extra money and paid it off so I didnt have to see the bill anymore. It took my uncle a long time of paying the minimum from his Sears card and realizing it wasnt paying crap so he paid it off fast. Its nice to have if you need stuff for you or home, but pay it off.

[winneythepooh7]

Another random thought: Don't tell people how much money you make. I never shared my salary with friends or co-workers. [/B][/QUOTE]

Wow that is so true. You know what's interesting too? Most people who make way more then me spend way beyond their means and are always broke.

[chideltjen]

I have one:

Start an IRA/Retirement fund NOW. I am only 22 and people are surprised that I am already putting money away. However, when I am 65, that money is MINE. You can get a traditional IRA or a Roth IRA; both give you money in the end, but young people are usually swayed toward Roth IRAs because you get more money over a long period of time. I don't have 401K at my job, so I just have $50 put away each month and it comes straight out of my account. When I get a better job, I will probably up the withdrawl, but I will need all the money I can when I am older to pay for medical insurance. So start now.

I also have a savings account. I am allowed to withdraw from it, but I try not to unless it's a big emergency. You can opt to have some of your paycheck be deposited into your savings account. It limits some of your spending.

I think something that has kept me level headed is that I don't have a major credit card (Macy's doesn't count...). It might hinder me if I decide to ever buy a home, but for now, I'd rather not have one.

[XOMichelle]

Originally posted by winneythepooh7

Just because you are a college grad does not mean you know everything. You will have to start at the bottom in entry level positions and work your way up.

Soooooo true!!!! I can't believe that I have a fancy degree and know so little about business and officework. But, that's what entry level postions are for. I have lots to learn!!!

I reccommend NOT moving home with your parents. Really think about what makes you motivated, and go for that. Take risks. This is the one time in your life when you can!

Direct Deposit IS your best friend.

Open up three accounts.

One Checking, One Savings at one bank. Bank A. Get bankcard checks the whole nine.

One Savings at another. Get nothing but the account. Bank B

Split your check between the two savings account figure out monthly expense and direct that amount divided by three into Savings A.

Rest into Savings B

Use the Savings at Bank A to pay bills.

Transfer funds from Savings at Bank A to Checking at Bank A for for day to day stuff and shopping.

Use Savings B for emergencies ONLY.

[Tom Earp]

If you did not do it in College, Do It Now!

White envelopes. Sound silly, okay.!

Write Rent, elctrical, gas, phone or what ever you have to pay.

Put money in each one for bills and pay those first.

Pay First, Play Later!

OOps, if not Crappola City!

Is it infantile or frugal until you get your feet on the ground and running!

Oh, forgot Plastic, have 1 or 2. Pay off each month and use spareingly, intrest will eat you up. Pay when you get it. They have now shortened the pay period down to 24 days, not 30! Ask what their % of interest rate is!!!!!!!!!!!!! It is important!

Scissors work wonders, if dont have Cash, dont buy unless absolutely needed.

I just graduated six months ago. In February, I opened up a savings account in a seperate bank from where my checking account is. I split my check evenly each week: half in savings, half in checking. I am living with my parents temporarily so I can afford to do this b/c I don't have bills except for car insurance so it works. I have over $2200 in my savings and $1000 in checking. No, I am not rich but heck it's a start in the right direction.

I also have a Visa CC and an American Express CC. Love them both but I don't rack anything up on them. Just put the stuff on there that my mom wants me to buy for her.

[annice22]

These are great tips for everyone. Thank You

[adpialumcsuc]

Credit cards are evil. My husband and I have spent the past 4 years paying every extra penny to our old debt from college. It is really easy to spend it but a million times harder to get rid of it. Finally after 4 years we have all of it gone. The only time we use the 2 credit cards we have are if some one buys something off the internet (I don't want my debit card used for that) or if Home Depot is running a special on their interest. It is amazing to see that we really can survive with out racking up a ton of debt. We don't buy it unless we have the money in hand.

Another tip. Have enough money saved to pay at least one month of all your bills incase you loose your job or choose to leave it.

[aephi alum]

I agree with a lot of the advice here.

Credit cards can be a good thing IF you control your spending and pay in full every month. If you've already fallen into the land of revolving debt, make the minimum payment on all your cards (as well as paying all your other bills), then throw some money at whichever card has the highest interest rate.

Be careful about consolidating student loans, because usually when you consolidate, the interest rate becomes fixed. You can get burned if your original loans had variable rates. Although, now might be a good time to lock in a low rate.

Try to have a cushion of savings that will cover you for about six months (one month might be cutting it a little thin, even as the economy starts to improve and companies start to hire again). Mortgage/rent, utilities, food, etc.

Save for retirement. Start an IRA, and participate in your company's 401k if they offer one. If you are self-employed you can set up a SEP-IRA.

Enjoy life! Just because you have a job and a stack of bills doesn't mean you can't go out and have fun once in a while.

[ZTAngel]

One more to add:

If you are financially sound enough to do this, I suggest taking a long vacation the summer after your senior year instead of starting work right away. Go backpacking through Europe, go surfing in Hawaii, etc. I really regret not doing this and going immediately into the working world. There will never be a time in your life where you can have a month or more to vacation. When you finally do have that much time off, you'll be retired and old and probably won't have the energy/desire to do all the stuff you could've done when you were younger.

[sororitygirl2]

Originally posted by laidbackfella
In America you only NEED two charge cards.

The first a REAL, no debit/check, Visa/Mastercard. And pay it off each month.

A Sears Charge Card. You can buy everything from tires to undergarments. And pay if off each month.

You don't NEED anything more than that. Cut up all those other lil charge cards from Express. Carrying all of those extra balances is STUPID.

Sears? Strange choice...

If I could only keep one, it would be Nordstrom. But then, my priorities may be slightly different than an average, red-blooded male... me being a chick and all.

[Munchkin03]

Originally posted by sororitygirl2
Sears? Strange choice...

No, not really. Sears, 'cause it's such a big store, has a lot of things you'd need in case of an emergency. Flat tire? Go to Sears. Washer died? Go to Sears. Starting over in new city and need to outfit your apartment? Sears. I wouldn't buy clothes there, but that's just me. The interest may be high, but I'd rather deal with Sears than Nordstrom or J. Crew as far as store cards.

I'd suggest an AMEX. Those things have saved me as far as travel and foreigh purchases.

[winneythepooh7]

Originally posted by ZTAngel
One more to add:

If you are financially sound enough to do this, I suggest taking a long vacation the summer after your senior year instead of starting work right away. Go backpacking through Europe, go surfing in Hawaii, etc. I really regret not doing this and going immediately into the working world. There will never be a time in your life where you can have a month or more to vacation. When you finally do have that much time off, you'll be retired and old and probably won't have the energy/desire to do all the stuff you could've done when you were younger.

Good advice ZTA. I also suggest checking out the benefits packages closely when you find a new job. Sometimes it is worth it to take a pay cut for extra vacation time. I know many people who make awesome salaries but only get like 2 weeks per year of vacation time and it is really hard for them to even take a sick day. I make a smaller salary but get 4 weeks vacation, comp time, 12 personal days, holidays, etc. Also be sure to weigh in thinks like commuting time. I was offered a good job making about $6,000 more per year then what my salary is now however if you factor in the commute, gas and tolls it wouldn't be worth it. Flexibility is a good thing too. Are you an "office person"? Or do you prefer to be "out and about" most of the day?

Originally posted by sororitygirl2
Sears? Strange choice...

If I could only keep one, it would be Nordstrom. But then, my priorities may be slightly different than an average, red-blooded male... me being a chick and all.

I think Munchkin03 summed it up. A Sears card is not for shopping on a regular basis. That's what a REAL credit card is for.

The Sears card is for those big ticket appliances and other last minute items. I certainly wouldn't buy clothes from Sears...well yes I would. They sell Docker's and Dress Shirts.

Again I don't suggest that any new graduate have anymore that one piece of plastic that buys things in their wallet.

The first should be a REAL credit card. For purchases.

The Sears card cuz they are all over, they deliver and they have everything you may NEED not always WANT.

Any card you have should be paid off in 20 days or less.

Now if after college you have the bomb job paying oodles of dollars or if your family is indeed wealthy you may follow some different guidelines. These are just what I follow, and now I am on a serious budget.