Advice to new college graduates: Don't blow it
Posted
May 12 2008, 03:04 PM
by
Karen Datko
"Money Smart Life" remembers the forced frugality of college: beans and rice, water on cereal because milk is too pricey, buying the cheapest beer, no matter how awful the taste.
He also knows how newly employed graduates are tempted to spend. For them, he recounts the tale of the guy who went to an all-you-can-eat buffet after spending four years stranded on a desert island: He goes into shock and almost dies because his appetite wrote a check that his stomach couldn't cash.
"Of course you won't die from overspending, but you can literally kill your financial future for years to come if you go on a buying binge," Money Smart Life writes in this down-to-earth post.
What should you do? He starts with a list of "don'ts." Don't get a fancy apartment or a hot new car, and use a car calculator before you buy one. Consider getting a roommate so you can save.
Don't run up credit card debt. "While credit cards can be a good financial tool if used properly, they can also get you into a lot of trouble financially if you abuse them," he says.
He finishes with tips to manage your money: Make a budget and follow it, and use online banking. "Watch out for things like eating out, bar tabs, and buying gadgets; those add up faster than you realize."
Save up an emergency fund. (It's not your credit card.) Buy health insurance.
You've lived like a pauper. "If you can combine the frugal tricks and habits you learned in college with the spending, saving, and budgeting tips we've covered," he writes, "you'll be able to have fun with your newfound cash and still build a financial future for yourself."
