Aug
12

Can I go Back to College Now?
It’s Monday…… and all I can think about is Friday (aka. payday)
Ever since I started my job, I have made a goal to save money and manage my finances better. I started off doing really well but then it felt like everything was being thrown at me at once. I had vehicle problems, unexpected medical bills, student loans, moving expenses….. they all just kept building up. For a recent graduate with a new job, this was a lot to take on. I was so excited to have a decent income for the first time and I was ready to spoil myself with luxury items. What I wasn’t prepared for was the responsibility of becoming an adult and paying my dues. Since then I have cut back on the unnecessary stuff like fast food, online shopping, going out, etc. I realize more each day that it is tough in this economy, and I’m starting to miss the days of dorm living and prepaid meal plans…… almost.
Here are some considerations for new unemployed grads or those who (like me) struggled with the transition of adulthood:
Living expenses
It’s pretty difficult to afford to live on your own with a small or
nonexistent income. Consider finding roommates, or even moving back home
with your parents. I know…. I get it. Who wants to move back in with
their parents after living on your own for four or more years? It may
cut into your sense of independence, but will help to preserve your bank
account! For food, check your newspaper ads for grocery deals and
coupons. You don’t have to eat ramen noodles every night if you’re a
smart shopper. For a great article on how you can save money while
grocery shopping, click here!
Pay off your debt
You may have a substantial amount of debt in the form of credit cards or
student loans. Work to pay off the credit card debt as soon as
possible, as those interest rates are likely the highest. You can save
student loans for last, since the interest rates are generally lower,
but try to make small payments if possible even if you have forbearance
and aren’t required to make payments for a while. Getting out of debt
sooner means you’ll pay less in the long run, and will also make you
feel less burdened.
Plan to maximize your income
If your just starting out in the industry of your choice,
congratulations! Work hard and hustle for promotions as you go. If your
employer offers you perks like tuition assistance for education or
certification that will help you move up the ranks, take advantage of
it.
Further your education
Going back to school may be a great option to open up your career
possibilities and ultimately earn more. However, if you plan to go back
to school for a higher degree, make sure you do your homework! Have
expectations that won’t backfire and leave you still un(der)employed and
in more debt!
Create an emergency fund
This is some of the best advice I can give. If I didn’t create
an emergency fund for myself, I’m not quite sure where I would be today.
With all of the unexpected financial problems I had, my emergency fund
helped save me from going into debt. Every month you should take a small
percentage of your income and store it in an emergency fund. It may
feel like you can’t afford to have one, but the truth is you can’t
afford not to have one. Emergency funds are essential, even for
us young adults. So how much do you really need? I recommend that you do
what works for you. There is no one right answer. Examine your
situation — your income and your needs — to decide how much you should
save.
Growing up is an exciting part of your life. Try not to let your finances ruin that experience. Work on creating a budget for yourself and cut back on the unnecessary things! It may be hard to start, but once you realize how much money you can save, it will all be worth it in the end!
Posted on Aug 12, 2013, in Budgeting, Money Saving TipsAny information contained within the contents of this blog are opinions and suggestions of the writers and do not necessarily reflect any policies or positions of the credit union. Any reference made to products or promotions are not guaranteed at any time. This information is not intended to be considered financial advice. It is provided for your education only. Community 1st Credit Union is Federally Insured by the NCUA.