Cash After College

Graduating college debt-free has nearly become a myth. With prices set so high on everything a college education requires- books, tuition, a computer, etc. - it is almost impossible to escape with both a diploma and spare change. Why must it be so difficult? It doesn’t have to be. It all comes down to good habits. By taking control of your money now, you can create habits that will last you a lifetime of financial stability.

What's in Your Wallet

The best place to begin is making a budget. Budgeting can be as simple as setting aside $60 for food every week. When you set limitations for your spending, you have less of an urge to splurge. Finding the will to be true to these limits will be the hardest part, but you must keep your eye on the prize. For example, $30 spent on red bull the week of your exams may turn into $3,000 debt down the line, simply by telling yourself that it’s okay to be free with your funds. Old habits die hard, and financially good habits are certainly the ones to be content with keeping. Now, if you are asking yourself if you even have enough money to budget $60 a week for food, perhaps you should start with a log of what you spend now. That way, you can see what you are able to cut from your blind spending. Anything that you may think is essential might just be a habit gone wrong.

What's in Your Vault

Once you have a budget in place, you will start to see just how far your money can go. The next thing you should add to that budget is savings. There are two types of savings- The “Big Purchase” fund and the “Emergency” fund. Of course, the Emergency fund sounds more important or even scary, but it should really be thought of as a safety net. The beauty of the emergency fund is that it doesn’t have to be thousands of dollars hidden away where no one would ever find it. It just has to be enough money to pay for the commonly unexpected. This could be anywhere from a flat tire on the way to class to a broken laptop on exam night. And as far as that Big Purchase fund goes, just know that if you blow that money, you can’t get it back. Ultimately, the Big Purchase fund is to discourage credit card use. If you are on the fence about using any of your saved money, unsure that it is truly an appropriate choice, just go back to the rules of budgeting. What would your life be like with the object? What would your life be with out the object and that money still in your savings? Is it worth it?

Workforce Development

Everyone knows that jobs are an odd commodity in these times. The secret isn’t finding a new job, it’s creating one. Take what you excel at and turn it into a business. Bring back the art of trade. In college, everyone around you is going through the same things- school, a job, socialization, and establishing themselves. Offer the people what you know they need. It might be a tutor, an intern, a connection, someone to rehearse with, a study partner, a baby sitter, a dog walker, or even just a friend. Something as simple as making a friend or two can turn into a connection to your future career. So just get out there and do what you do best, whatever that might be.