Saturday, October 26, 2013, AM | Leave Comment
A lot of college students live in a different world and have not experienced any hardship. While this is natural, a student should try to learn some basic economic ideas.
With that being said, here are five things to know about finances before graduating college.
Ideally, a person should establish some credit while they are in school. If this is not possible, one must learn to do this quickly. To get started, a person should apply for a secured credit card. This will allow a college grad to start establishing their credit, which will enable them to get better rates on loans in the future.
Now, some people do not understand the power of compound interest and they miss out on valuable gains. To understand this, one must realize that they can save money in their first decade of working and watch their gains take off. In fact, when done correctly, an individual will have an easy time saving money and retiring early.
After graduation, many college students will be ready to make big purchases like a house or car. When buying a house, one should try to find the best deal on loans. In fact, the difference in interest rates will drastically effect how much money a person will need to pay in the long run. Often, a graduate who also served in the military can find low VA rates. In reality, you need to shop around to find the best loan for your circumstances.
One must have adequate amounts of insurance for their home, auto and health. When a person avoids insurance, they will have problems if one minor issue in the future occurs. Luckily, one can, with ease, find a great deal on insurance that will not break the bank. Remember, it is foolish to try to save $50 a month and forego valuable insurance.
Now, after landing their first job, many new workers will run out and get cable, a nice car and other expensive items. While this is tempting, one should try to exercise restraint as monthly bills can kill a person’s savings goals. Instead, after landing the first real job, one should stick to their budget and try to put money into their savings and retirement accounts as it will be easier to save now than in the future.
With these five tips, one can succeed in the outside world. A new graduate must heed this advice as it will help him or her set up their financial life in the future. The last way you want to start off your post-grad life is to be buried in debt or not have a clue of how to use the money you do have. Prepare now and you will start setting good financial patterns for the rest of your life!
This article was written by Dixie, a freelance writer who writes for finance, business, women’s interests, and the home niches. She lives in Arizona with her husband and three daughters. Dixie obtained her financial advice from experts at www.lowvarates.com, a group of loan specialists who help Veterans get affordable loans daily.