After graduating college and finding a job, many millennials rent an apartment, buy a car and rack up debt on credit cards. It isn’t long after that they realize that the extra cash they once enjoyed for weekend outings with friends is now tied up in their newly acquired debt. There’s nothing wrong with wanting the finer things in life when you do it over time and without becoming “cash poor.” Otherwise you can end up needing to borrow money just to stay afloat.
Consolidating Debt
Carrying lots of debt can cause you to pay out hundreds of dollars each month. If you find that you have more than a couple of loans and credit cards to pay each month, try consolidating them into one lower monthly payment. You can apply for a personal loan and if the debt isn’t more than a thousand or two combined you can even apply online for quick and easy cash loans.
Start Small
After landing a job you may think it’s the right time to move into a large apartment. While your salary on paper looks good and justifies the decision, there are many other expenses to factor in. Along with the rent come electricity, cable and water. In addition, since you now live on your own you’ll also need to spend money on food and other essentials. Not to mention work attire and the expense of getting to and from work. Instead of taking on a large space now, settle for a smaller apartment located in close proximity to your job. This way you can get a feel for the expenses without getting in over your head. After the lease is up, you can decide whether the move is in your best interest.
Save for Large Items
You will want to have nice things of your own and there’s nothing wrong with it, provided you do it the right way. Open a savings account specifically created for items you want such as a new television or gaming system. When you have the cash available you can make a withdrawal from the bank and pay exactly what the item costs, no interest and no monthly payment added to your debt.
Pay Down Debt
Paying down debt is the best way to enjoy more of your hard-earned money. It also puts you in a good position going forward with buying a car or a home. If you have a few credit cards with high balances, start with the credit card that has the highest interest rate and pay that one off first and then move onto the next one.
Live Within Your Means
When you live on your own for the first time, eating or ordering out can quickly become a way of life. Here’s where going to the market and buying food can save you a lot on money that you can later use to enjoy an evening out at a sporting event, comedy club or the theater.
Being smart with your money after graduating college and starting a job will help you to achieve your long-term goals of a healthy financial future.
