Fiancial Tips for New Graduates

Presented by Marc Aarons

 

I hope you’re doing well! If you or a student in your life has recently graduated, we want to extend our heartfelt congratulations. This is a monumental accomplishment.

For many, this achievement marks a first foray into managing finances independently. This can bring unexpected challenges to new grads as they juggle student debt, investing, and saving.

With that in mind, we wanted to share a few key areas that new grads can focus on to help find their financial footing:

1. Managing Debt: If you have student loans or other debt after graduation, you’re not alone. A good way to start managing your debt is to get everything out in the open. List your loans, credit cards, and any other balances so you know what you’re dealing with. While you do this, be sure to pay attention to interest rates and make a plan for how you’ll handle payments each month. When you’re organized, it’s easier to keep debt from getting out of control. 
2. Budgeting: Think of a budget as a way to keep your money working for you. Begin with your take-home pay, which is your pay after tax and any deductions, and make sure your essentials are covered; then you can see what’s left for everything else. This can look like putting money into “envelopes” or savings categories, or simply tracking the numbers in a spreadsheet. Tracking your spending, even just for a month, can be eye-opening and help you fully understand where your money is going.
3. Saving: Savings give you a safety net. Life after graduation comes with surprises, and having even a small cushion makes moments like car breakdowns or surprise medical expenses easier to handle. Start by trying to save up an emergency fund that can cover several months’ worth of expenses, then branch out and start saving for other wants or needs in your life. Starting with small, consistent savings is the best way to go. The habit matters more than the amount at first.
4. Investing: You don’t need a lot of money to get started with investing. The most important thing is to start early. Starting with small contributions to your own investment accounts or employer-sponsored accounts like 401(k)s can give your money more chances to grow.

If a loved one has recently graduated and has questions about investing or other money management strategies, don’t hesitate to reach out. I’m here to help guide you.

Please don’t hesitate to reach out with any questions or concerns.

Marc Aarons may be reached at 714-887-8000 or Email Marc

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Investment advisory and financial planning services are provided by Money Managers, Inc. a registered investment advisor.  Money Managers, Inc., is registered in the required states with the state regulatory authority. Our CRD Number is 151602.  To access our most recent version of our Form ADV, Form ADV Part 2A and privacy policy, visit https://adviserinfo.sec.gov/. This information is for educational purposes only.  Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any securities, and past performance is not indicative of future results.  Investments involve risk and are not guaranteed.  Be sure to first consult with a qualified financial adviser and/or tax professional before implementing any strategy discussed here.