7 Financial Mistakes for New Grads to Avoid

7 Financial Mistakes for New Grads to Avoid

Graduating from college is a big step in your life. Unfortunately, it’s also a time when many new grads make some pretty big financial missteps. Here are seven of the most common to avoid:

1.  Counting on a paycheck right away

Landing your first gig might take a little time. If you’re not planning to move back home, have a plan for how you’ll cover your living expenses in the meantime.

2. Taking on additional financial responsibilities

After graduation is not the time to buy a new car or sign a new lease, as you likely don’t know where you’re going to be and what your financial situation will look like in the next 6-12 months.

3. Ignoring your student loans

Take advantage of your grace period by making a plan to tackle your debt. Explore loan forgiveness and consolidation options.

4. Racking up credit card debt living beyond your means

Be realistic about the lifestyle you can actually afford. It might not be the lifestyle that you imagined you would be living as a “real adult”, but there’s plenty of time to work towards that.

5. Not establishing a budget

Whether you have more discretionary money than you’ve ever had, or just making ends meet. Even a loose budget can help you reign in unnecessary spending and save money.

6. Getting rid of your student ID card

You can get student discounts through the end of the calendar year, at least. If your ID card has no date, then you can potentially get discounts…forever.

7. Not saving for retirement.

It’s hard to imagine the end of your career at the beginning of it, but it’s important to start investing in a 401k, or another retirement account, as early as possible.

Avoiding these mistakes will help you start off your post-grad life on the right financial footing. Want to really get on the right track? Start automating savings with Trim! Click here to get started today!

 


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