DeKalb, IL — Navigating the real world and making smart financial decisions after college can be tough.
Here are four money-related mistakes that new college graduates should avoid, according to experts.
Not following a budget
Following a budget will help young adults avoid overspending and make it easier to allocate money toward the things that are important, such as saving up to travel or buy a home. To set up a budget plan, you can use a spreadsheet, a pen and paper, or download a budgeting app.
Racking up debt right away
Having a budget will help you not rack up as much debt but it’s important to not spend a ton of money on nonessentials. Having a credit card should be used to build your credit score and not to have a pile of credit card debt as a young adult.
Not prioritizing savings
Once you get your first job out of college, it’s essential to start protecting yourself against unplanned expenses by building an emergency fund. Your emergency fund should have enough money to cover three to six months of living costs.
Passing up a job offer that isn’t your dream
There will not be a ton of jobs to choose from being a new graduate during the COVID-19 pandemic. Therefore, recent graduates may have to settle for a job that may be less than ideal but still give you the experience you need.