Fresh graduates begin their quest for financial independence as soon as they move out of their college or university campuses. After several years of study to earn their respective degrees, they plunge headfirst into the challenging corporate world, with the primary goal of achieving financial stability.
However, not everyone succeeds in their quests. Though some graduates are able to juggle their work responsibilities and finances carefully, a lot of fresh graduates who are now employees of different companies are having a hard time handling their money. They tend to make hasty financial decisions that can eventually hurt their credit prospects and cause them great financial problems. And so instead of attaining financial independence and stability, what they encounter are the direct opposites of their goals.
But are there ways to avoid encountering financial difficulties? Of course there are! Below we have listed five financial tips that college graduates can employ to avoid experiencing credit woes and other financial dilemma. This way, they can realize their dreams of becoming financially stable and independent.
Five Financial Tips for Fresh Graduates – Student Credit Cards
1. Consider your student loans and student credit card debts. First and foremost, fresh graduates must determine a way through which they can settle their student loan accounts and student credit card debts. This should be their top priority before making other financial decisions like purchasing cars or homes and even starting their businesses. Ex-students must devise a debt management plan that details how they intend to retire all their credit accounts.
This step may involve taking a debt consolidation loan program to finally pay off all their existing credit balances. Or fresh graduates can also look for debt negotiation assistance that can help reduce their outstanding credit accounts. By choosing a suitable debt-busting program, college graduates can be assured of gradually paying off the debts they have incurred from their credit card for students and from the educational loans they applied for, without compromising their monthly needs and expenses.
2. Think of better alternatives to your first credit card. Credit card for students surely made it possible for students to support their needs during their years of study. However, relying too much on their first credit cards can lead to more and bigger spending and financial liabilities. So, students must see to it that they use their student credit cards with great care.
Financial experts recommend that fresh graduates consider the use of debit card programs. This way, they can be more aware and more in control of their spending habits.
Using debit cards also have additional benefits. Debit cardholders do not pay interest rates and penalty fees. After all, they do not assume credit or loan from a credit card company. In fact they themselves are the ones providing balance onto their debit card accounts.
3. Find your first apartment. Even if it is really exciting to move into your own place, you still need to consider all the costs that will be involved in your transfer of residence. Think of the rent and utilities that you have to pay each month. Not only that. Consider how much money you need to shell out for your transportation expenses as you travel from your home to your place of work. These important aspects must be considered in your search for the most suitable apartment.
4. Compare the cost of a new and a used car. If you are planning to purchase a car, then it will be good to look at and compare the costs of a brand new and a used vehicle. Do not only look at the price tag of the cars you plan to purchase. You also need to calculate the depreciation expenses you will be incurring every year. By thinking about these costs, you can select a car that will be most suitable to your financial capabilities.
5. Save early, compound often. Finance experts also encourage fresh graduate to save early. They can set aside a certain amount from their monthly income, that will go to their personal savings account. In so doing, they can expect to receive a substantial amount as long as they keep their savings fund intact.
We encourage our fresh graduate readers to employ these five financial tips. And we guarantee that by doing so, they can surely attain the financial independence and stability they have been dreaming of.
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