Graduates with New Jobs: What to Know Starting Out!
Three quick tips for early financial success as you start out.
Learning a new job, moving to a new place, meeting new faces, and visiting your college friends all takes planning. During this busy time, don’t forget about planning your finances.
Financial Tip #1: Create Your Monthly Budget
List your expenses and income. Make a monthly plan so you are not caught without money at the end of the month. Know your spending boundaries and begin to build your emergency fund. An emergency fund may take a few months to a year to fund fully depending on your situation. Strive to have 6 months of living expenses set aside. Read why having a safety net is important Need to Build an Emergency Fund? Seven Steps to Get There | Kiplinger
Financial Tip #2: Enroll in your Company’s Benefits
Take advantage of an HSA (if enrolled in a high deductible health plan) and any available match in your employer sponsored retirement plan such as a 401(k) or 403(b). Contributions are pre-tax which will lower your taxable income, allow you to capture the company match, and be invested for future growth. Read how impactful an HSA could be if accumulated and invested wisely over the years of your career. HSAs As ‘Medical IRAs’: A Great But Neglected Strategy (fa-mag.com)
Financial Tip #3: Pay Down Debt
Pay off your credit card balance monthly and if you have student loans tackle them right from the start. Credit card APY rates are extremely high on carry forward balances. Make payments before or by the due date so you do not incur late fees, interest charges, and bad credit reports. If you think you need a strategy don’t wait, here’s a five-step plan How to Get Out of Credit Card Debt: A 5-Step Guide – NerdWallet
Starting out is exciting and making the right decisions is important. Plan it out and all will go smoothly as you build your foundation. One of WPC’s core commitments is to guide the next generation. We are here to help you make good financial decisions at every stage. Visit our resources at www.wealthp.com/resources
If you would like to work with a Nex Gen Advisor, Tim Dougherty, CFP® and Noah Sayre, CFP® are available to discuss your financial situation.
