Congratulations, 2024 graduates! This transition comes with many changes, offering a great opportunity to build a strong financial foundation. Your hard work has paid off, and you are ready to make your mark on the world. But where do you start with post-graduation financial planning?

Understand Your Money Patterns

One thing you can do immediately after graduation is analyze and understand your spending and saving habits. Regardless of your current income, everyone manages money differently, and understanding your style is crucial for setting yourself up for future success in post-graduation financial planning.

Track Your Spending

Before trying to change your habits, understand your current ones. Take an unbiased look at your finances and differentiate between non-negotiable needs and personal wants. You don't have to cut out all personal spending; just create a balance that works for you.

Minimize Your Biggest Expenses

After analyzing your spending habits, look for opportunities to cut costs on items where you often spend large amounts. For instance, if you eat out frequently, consider cooking your own meals. If you're shopping for new items, try buying secondhand online or in stores. Sharing rent with a roommate can also help reduce expenses. Small adjustments can lead to significant savings.

Layer Smart Financial Habits into Your Life

Financial habits extend beyond spending tendencies. Several simple activities can help you stay on top of your finances and even grow them.

Monitor Your Credit Score

Check your credit score regularly using available platforms or through your financial institution. This can help you track your financial health and identify any potential issues early on.

Regularly Check Your Accounts

There are a few reasons this is a critical financial activity for every new grad. Keeping track of your account balances ensure that you have the funds to cover your bills and purchases. Additionally, keeping an eye on your account activity can help prevent fraud and identity theft through recognizing unauthorized transactions.

Be Smart About Job Hunting

Don't go into your job hunt blindly, that can be a waste of your time and effort. Instead, put thought behind each application by tailoring your resume and writing cover letters.

Research the companies you are applying to and speaking with, so you're prepared for interviews. Search for jobs based on degree and experience to help narrow down your search. Take advantage of your social and professional networks to get connected with the right people and opportunities. Reflect on each interview you have and make adjustments to be successful in the future.

Lastly, don't wait around for the "perfect" offer and miss out on other opportunities. Post grad life is your time to figure out your path and this can involve a few stops on the way.

Choose a Budget Framework That Works for You

It's never too early to start budgeting post-graduation financial planning. Regardless of your post grad employment status, a budget is needed to keep your finances in check. Remember, budgets do not have to be sent in stone and adjustments can be made as your situation changes and evolves. We've gathered some budget frameworks below for you to consider but you can check out our blog for more ideas on how to create and stick to a budget.

Pay Yourself First

This budgeting method allows you to plan your spending around your savings goal. Allocate your money first to saving or larger investments before planning your spending accordingly. Automate this as much as possible using direct deposits or automatic transfers.

The Envelope Method

Allocate your spending into categories and immediately place your income into the buckets. This does not necessarily have to be done with actual envelops, there are more secure options such as a checking or savings accounts or lockbox.

50/30/20

This framework allows you to separate your income into three categories of spending: needs, wants, and savings. This budget can be personalized by adjusting the percentages, but it's recommended to start with 50% to needs, 30% to wants, and 20% to save.

Regardless of what framework your chose, it's important to make your budget work for you. Monitoring your spending is not all about restriction. Although it's important to live within your means, set aside funds for yourself within your budget to enjoy life post-graduation!

Start an Emergency Fund

We often feel that nothing bad will happen to us, especially when we are young. The truth is that unexpected costs will come up when you least expect it, and it's important to be prepared. An emergency fund is a safety net to reduce expenses and cover unexpected costs whenever they pop up. Setting up a regular contribution plan is a great first step but also take time to define what an emergency is to you and set guidelines for when and how the money will be used.

Create a Student Loan Repayment Plan

This can be done even before you graduate but make sure you do it immediately after graduation if you haven't already. Start by figuring out when your payments will start being collected.

• Federal loan payments start six months after graduating or dropping below half-time enrollment.
• Private student loan companies have varying payment schedule requirements. Do your research and be prepared for your specific situation.

No matter what your student loan situation is, the worst thing you can do is ignore them, as this can lead to significant financial burdens in the future. Don't be discouraged, there are educational resources and financial guidance options available to help. Refinancing your loans is also an option to reduce interest rates or combine multiple loan balances if necessary.

Never Stop Learning

Your academic life may be coming to an end but that does not mean you should ever stop learning, especially when it comes to your finances. There are opportunities for financial education almost everywhere you look. Focus your time on building skills through doing. Learning through experience can help you master new or budding skills quicker. We've gathered some ideas for you to build your financial skills after graduation.

• Start up a side hustle: Try a gig such as pet sitting, ride share driving, or freelance work. Think of it as more than an additional income stream. Use your side hustle to learn networking skills, hone your personal pitch, and build upon existing talents.
• Take advantage of online resources: There are reputable free and paid courses online to continue your learning from anywhere. Skill share websites allow you to lean on other professionals to build your skills and get real-world advice.
  
  

As you embark on this exciting journey post-graduation, remember that building a strong financial foundation is a gradual process. By understanding your money patterns, incorporating smart financial habits, and staying proactive about your financial future, you'll be well-equipped to navigate the challenges and opportunities that come your way. Keep learning, stay adaptable, and don't hesitate to seek guidance when needed. Congratulations once again, and here's to a financially secure future with successful post-graduation financial planning!