Tag Archive for: Lifestyle

You’ve finished off the leftover turkey and dressing and have shifted gears into holiday shopping mode. As another year comes to a close, it’s a good time to look back on how your budget planning went this past year.

After an assessment, you can begin to find ways to improve your financial well-being in the upcoming year. In order to be prepared for a bright financial future in the New Year, it’s important to set your budget, contribute to your savings, and pay down any high interest debt.

Now is the Time for Budget Planning

Do you know how much you spent this year on utilities, groceries, housing, or entertainment? Once you have an idea of how much you’re spending on certain categories, you can estimate your projected expenses each month and use budget planning to find places to cut expenses.

There are a number of apps that can assist you with tracking and categorizing your spending, but you can also do it on your own by entering your expenses into a spreadsheet. If you use your debit card for most purchases, you can use your online bank statement to help you identify your expenses. Don’t forget to account for the cash you spend if you want a true picture of all your expenses.

When setting your budget, you’ll likely have fixed and recurring expenses for housing, transportation, student loans, utilities, and other similar areas. Then, you’ll need to set an amount for variable expenses like groceries, clothing, and entertainment.

Knowing your income each month will help you set goals. If you have a steady job, you probably have a consistent weekly or monthly income and can use that to start your budget. Your monthly expenses should be less than your available income each month.

If this is not the case, you can review your expenses to identify areas to trim back and reduce your spending each month. Once you’ve created a budget, try to stick to it as best you can each month. That way, you’ll stay on track and not get into a position of having to use credit cards or possibly getting behind on some of your bills.

Save, Save, Save—The Sooner You Start the Better

Even if you’re in your 20’s, it’s never too early to include retirement in your budget planning. If you start with small contributions, you can make it a habit and priority. If your employer offers a 401(k) plan and matches your contributions, take full advantage of the opportunity for free money.

It’s also important to set aside funds for unexpected expenses or emergencies. A good rule of thumb is to have three to six months of income in a savings account that you can access for those unplanned events. Not only will this give you peace of mind knowing that you have your own safety net, but it will help you avoid putting large charges on a credit card that will likely incur high interest fees.

Pay Down High Interest Rate Debt

Whether you’re paying off a student loan, a car, or a credit card balance, it’s always an accomplishment to know you have extra income to go toward something else (like saving).

If you can allocate some extra resources to pay down your debt, it’s generally best to start by tackling the account with the highest interest rate. That might be a credit card balance that seems like it never gets smaller because of the interest that keeps adding up each month.

Another goal you might have is to simply pay something off with a smaller balance just to get that sense of accomplishment and then move that money toward paying down other debt. It might make sense to look at debt consolidation or refinancing where you may benefit from paying off higher rate loans or debt with a lower interest rate personal loan. This is especially helpful with high rate credit cards. See our article on using personal loans to cure those post-holiday credit card blues. You can find other helpful articles and resources at U-fi.com. All of us at U-fi wish you a successful and prosperous new year!

If you’re reading this, you probably have at least one credit card already. Credit cards can be a helpful tool when used appropriately, including helping you establish credit and build your credit score. However, you can also damage your credit score if you develop bad habits with your credit cards. Here are some tips to help you avoid going down the wrong path so you can better manage your finances. You can also check out our Credit Card Tips sheet for additional information.

Looking for a New Credit Card?

If you’re in the market for a credit card, there are some important factors to keep in mind. First, do you already have a credit card? If so, why do you need an additional card? Typically, one is all you really need. If you open several new accounts within a short period of time, your credit score could be damaged. You could be perceived as a higher credit risk because you increased your capacity to take on more debt. This might ultimately be hard to repay.

If you’re looking for your first credit card, be sure to compare different offers and find the card that will work best for you. Here are some things to look for in a credit card:

  • Find a card with the lowest interest rate
  • Avoid outrageous fees (make sure you read all the fine print to understand what fees can be charged)
  • Be cautious of low introductory interest rates that can increase greatly after their initial low interest period

Managing Your Existing Credit Cards

Once you have a credit card, it’s best to have a solid game plan in advance. Sticking to your strategy ensures you won’t get in trouble financially and find yourself with an impossibly high balance.

Credit Card Goals

Here are four goals that will help you stay in control of your credit cards:

  1. Try to pay your balance in full each month. Think of your credit card as an extension of your bank account. That way, you won’t be tempted to charge more than you can afford. Just remember not to charge more than you could pay if you had used your debit card.
  2. If you can’t pay your balance in full, try not to carry much of a balance from month to month. Make a goal to pay more than the minimum monthly payment due. This will help you pay down your balance as quickly as possible. Keep in mind the balance you are carrying is also charged interest, which can make that original purchase more expensive.
  3. Don’t be late with any of your payments. Make sure you know your monthly payment due date. Even if you plan to pay the balance in full, it’s important to make that payment on time. You may want to set a reminder for yourself so you won’t miss that date. If you’re late by even one day, your credit card company may charge a higher interest rate and late fees. Additionally, being late on a payment may lower your credit score.
  4. Avoid impulse purchases and cash advances. Just because you have a credit card doesn’t mean you’re obligated to use it. Although it may be tempting to buy something expensive on credit, it’s better to take your time and save for that purchase. Remember that using your credit card to buy something expensive this month means paying for it over several months. And, you’ll end up paying a lot more than that original purchase price with the added interest charges. Finally, don’t use your credit card for cash advances at the ATM. You could be charged a fee, and may also pay a higher rate of interest on that transaction.

Use Credit Responsibly

Remember, credit cards can be a helpful financial tool when used responsibly. Do you currently have a balance with a high interest rate? Are you looking for a smart way to pay off that debt? A personal loan is a solution worth exploring to pay off your high rate credit card balances. You can find more information about personal loan solutions, as well as additional tools and resources at U-fi.com.

Does your January credit card statement have you feeling blue? Find out how personal loans could provide credit relief.

It Happens to the Best of Us

The holidays have come and gone. You may be feeling a bit relieved that all the seasonal hustle and bustle is over. Sure, it may be a bit cold outside. Sure, work is back in full swing. But, things are looking good with your New Year’s resolutions. You’re feeling optimistic and energized.

Then, you receive your January credit card bill. Whoa, the new balance is much higher than you expected. As you go down the list of purchases on your statement you ask yourself, “Did I really spend that much?” You also notice the available credit on your credit card is pretty low. There are some big purchases coming up in your future. You were planning on using your credit card to pay for them. Now, you no longer have enough available credit to pay for everything as planned.

With average credit card APRs over 16%, and many exceeding 20%, you know if you don’t pay your balance in full you’ll be hit with a hefty finance charge, which will be added to your outstanding credit card balance. And even worse, if you’re late making the minimum payment that’s due, you could be hit with a penalty APR, which can be as high as 29.99%.

Personal Loans Could Provide Credit Relief

This is where personal loans could provide credit relief. Unlike a credit card, which is a revolving line of credit, a personal loan is an unsecured loan that doesn’t require any collateral, such as a car or house. Personal loans come with a specific repayment period, usually between 1 and 7 years. Fixed interest rates are more common than variable interest rates, and some lenders will offer you a choice.

The main reason people take out personal loans is to pay off existing debt, such as high interest rate credit cards or loans. Other common reasons include making major purchases, for home improvement projects, for special occasions like weddings, to take a vacation, and to pay off medical bills.

Personal loans can range from as little as $1,000 to as high as $100,000. APRs vary widely among lenders and are based on the borrower’s (or co-signer’s) credit history, annual income, repayment term selected, and type of interest rate chosen. Some personal loans even come with money saving automatic payment discounts and loyalty discounts.

Tip: Some lenders charge upfront fees, which add to the total cost of the loan, so be sure to take that into account before choosing a lender.

A really nice feature for personal loans is how quick and easy the process can be. If you submit a completed loan application, you can receive a decision in a matter of minutes, and if approved, receive funds in your bank account as soon as the next business day, provided your application has no typos or errors.

Now that the holidays are over, you may be suffering from the post-holiday credit card blues. If so, check out a personal loan for credit relief from U-fi’s partner. It just may be what the doctor ordered.

Winter break is often a favorite time of year for college students. It’s a chance to go home, visit family and friends, enjoy home-cooked meals, and maybe do a little holiday shopping. Unfortunately, working off that extra helping of pumpkin pie may be easier than off your holiday spending.

5 Holiday Spending Tips

As you prepare to enjoy the holidays, these tips can help you avoid spending traps. Here’s how you can ring in the New Year without a mountain of debt and  holiday spending regret.

  1. Don’t use student loans to pay for a holiday trip or gifts.

    Using a student loan to finance a trip over the holiday break or a shopping spree might be tempting. But remember, your student loan is intended for educational expenses. Plus, you really don’t want to take on student loan debt for a short term benefit that you’ll be paying back for 10-plus years with interest.

  2. Avoid paying for everything with a credit card.

    Much like using a student loan, you’re better off to simply pay with cash and avoid using a credit card for holiday expenses. Credit cards will typically have high interest rates, especially if you carry a balance. If you can’t pay cash for your holiday purchases, it’s probably not worth the cost.

  3. Don’t feel obligated to buy gifts for all your friends and family.

    If you’re a student, your friends and family understand that you’re on a tight budget and may not have the resources to buy gifts for everyone. Simply spending some time with friends and family will likely be more meaningful than any gift you could purchase at the mall. Find ways to do small but meaningful things that will be appreciated.

  4. Don’t forget to set a budget or spending limit.

    It’s important to know in advance what you can reasonably afford to spend. It’s a good idea to set a budget for yourself and cap your spending at a certain dollar amount. That will help keep you on track and also let you plan better for the people on your gift list, and possibly help you cut back on the number of people on your list. Some families draw names for gifts or find other creative ways to help family members keep their expenses down and enjoy their time together.

  5. Avoid paying for gift wrapping or expensive gift bags and cards.

    It’s convenient to drop your gifts off and have someone else wrap them. However, there’s a cost for convenience and it simply might not be worth paying for. Buying wrapping paper after the holidays is a great way to save money and plan ahead for the next year. Plus, if you plan and don’t make all your gift purchases at once, you won’t be bogged down wrapping a lot of gifts at the last minute. Often, a card and a gift bag may actually cost more than the gift you’re giving.

With a little discipline and planning, you can set yourself up for a fun-filled holiday season without incurring the stress of spending too much or putting yourself into debt. Remember to enjoy the holidays and the time spent with friends and family. Many times, the best gifts are the ones that don’t cost anything at all.

You’re in college and on your own, but you may still experience the occasional financial pitfall. Below are money mistakes many students make, and some tips on how to avoid them.

Financial Pitfall #1: Spending all your living expense money early in the semester.

You’ve probably set aside spending money for personal expenses if you live off campus. Or, you may have financial aid funds to use for room, board, or other educational expenses. That money needs to last through the entire semester, but many students spend it within the first few months. How can you avoid spending your money too early? Use these financial management tips and this budget worksheet to help develop a monthly spending plan.

Financial Pitfall #2: Not taking advantage of part-time employment opportunities.

Most schools offer part-time employment options for students through Federal Work-Study, and by posting on- and off-campus jobs. You might worry that a job will conflict with academic work, but studies show that students who work between 15 and 20 hours while in school are generally more confident and successful. Having a job helps bring in money regularly throughout the semester and can help build your resume. Your college financial aid office awards Federal Work-Study and generally posts related job opportunities. Work-Study is based on financial need and requires a Free Application for Federal Student Aid (FAFSA) . Other part-time jobs may be posted by the Career Office, Student Affairs, or other places on campus. Check your school website for more information.

Financial Pitfall #3: Accumulating credit card debt.

You’ve probably already received credit card offers in the mail. You may also notice giveaways and travel rewards that make the offers sound appealing. Be careful – as a new credit card holder, your interest rates will be high, and credit card offers tend to have many fees attached. Be sure to read the fine print and note that the initial low interest rate offered may expire in just a few months. You can quickly accumulate credit card balances that can swell out of control, especially if you’re only making minimum payments. Here’s an overview of credit card pros and cons, along with additional information about other matters to consider.

Financial Pitfall #4: Taking out student loans without understanding them.

Student loans are so common that students often see them as just another type of financial aid. There is an important difference; student loans must be paid back. While student loans can be a useful way to pay for your education, keep your borrowing to a minimum. Know what your monthly loan payment will be when you get out of school. Understand what you can realistically afford to borrow. It is also important to know the types of loans, the terms of those loans, and the options available. To get a general idea of what your monthly loan payment may be when you finish school, Federal Student Aid provides an easy-to-use repayment calculator.

The earlier you can learn the basics about managing your finances, the better off you’ll be in the long run. These simple steps should help you build the foundation you need for a successful financial future.

Whether entering college after high school or transitioning from full-time employment, your financial picture will change as a student. The summer is a good time to prepare for that change. College may be the first time you manage finances on your own. Or, you may be cutting back on your work hours and living on a lower income while attending school. Either way, these six tips for understanding education costs can help you develop a financial plan for the months ahead.

Create a Budget

Maybe you’re coming to school with money you’ve saved for personal expenses. Perhaps you have a family-provided bank account. Maybe you have financial aid designated for living costs. Either way, you probably have a lump sum which needs to last throughout the term. Establishing a budget that considers your available funds and expenses helps stretch that money instead of spending it upfront. Budgets take self-discipline and planning, but they are well worth the effort. They can play a big part in understanding education costs. Use this helpful budget worksheet to get started.

Don’t Borrow More Than You Need

Student loans come primarily from federal or private sources. After federal loan funds are exhausted, some students turn to private student loans to help cover expenses. Student loans provide money to help with college costs. But, you need to repay those funds with interest after you leave school. It’s sometimes easy for students to develop an, “I’ll worry about that tomorrow” attitude about borrowing. They often take out more than they need. While they are a good investment in your education, loans can add up. They can become a large financial commitment for years after you leave school. This is especially true if you start using student loans for living expenses. Our advice: only borrow what you need for college bills.

Work Part-Time While You’re in School

A big part of understanding education costs is realizing what you need. Getting a part-time job can bring money in on a regular basis while you’re in school. It can also keep you from using student loans or credit cards to cover personal expenses. There are two different types of jobs: Federal Work-Study, which would have been included on your financial aid award letter, or a part-time job that you obtain on your own. Colleges often have job boards that identify positions as one or the other. You can also look on local job websites for part-time employment. Businesses in college towns often rely on students as a part-time workforce. Concerned about work conflicting with your coursework? Studies show students who work less than 20 hours a week actually do better academically. They are also more likely to graduate.

Be Careful with Credit Cards

College students often receive credit card offers in the mail, online, and at concerts and events. Those free t-shirts and travel mile offers entice new banking customers, but they may not be worth it. While wise use of credit is a move toward financial independence, overuse of credit can cause financial pressure. It can compete with your academic and financial goals. Read the small print, take out the best rate with the lowest fees, and use credit sparingly, if at all. If you do decide to take out a credit card, the best way to use credit is to pay it off completely every month. That way, you can develop a positive credit history, but not accrue interest and fees that can take years to repay.

Understand Your Financial Aid

Students who go directly to college from high school often rely on parents to complete financial aid forms, review financial aid, and pay college bills. However, understanding education costs is an important part of knowing you are responsible for keeping that financial aid. You must make Satisfactory Academic Progress, get a job, if eligible, for Federal Work-Study, and repay the loan you have taken out. When you are in school, the financial aid office will reach out to you to take action or answer questions about your financial aid. It’s important for you to understand your financial aid and the corresponding responsibilities.

Protect Your Personal Information

As a student, you may be a primary target of identity theft. Students tend to be more trusting, have new and unblemished credit, and are unfamiliar with the ways their information can be compromised. Be sure to protect personal information like your Social Security number, date of birth, driver’s license number, bank account numbers, PIN numbers, and other related information. Avoid shopping online on public computers and keep personal documents and information in highly secure places. More helpful tips are located in this How to Avoid Identity Theft fact sheet.

Although your income will be lower when you are a college student, you’re certainly not alone. Your classmates are in the same situation, struggling with understanding education costs. As a general rule, think of the long run instead of just current wants or needs when making financial decisions. If you make smart financial decisions while attending school, you can use your college years to form a strong foundation for the future, both academically and financially.

Congratulations, you’ve graduated college! You’re ready to begin your new life in the real world with a real job! This step into adulthood is very exciting, but it can also be a time of confusion with new responsibilities. Set yourself up for financial success early by following these financial tips, including planning emergency savings.

Salary Expectations

Many college students graduate with an unrealistic expectation their salary earnings for the first years after college. Accenture conducted an online U.S. survey in March of 2015 consisting of 1,001 students graduating from college in 2015 and 1,002 participants who graduated college in 2013 or 2014. The survey found that 85 percent of 2015 graduates expected to earn more than $25,000 a year after graduation. While the reality is, 41 percent of working 2013 and 2014 graduates actually earn $25,000 or less a year. Even though you have a college degree, you will likely start your career at an entry level position. It will be important for you to make a budget aligned with your salary.

Budgeting

Once you land a job and start earning a steady income, it can be tempting to carelessly spend money. It’s time to make a budget. There are several worksheets, like this one (PDF), that can help you get started. Make sure that your monthly income minus your monthly expenses is a positive number. If not, you will need to cut back in areas or get a part time job in order to live within your means.

Now is a good time to start planning for the future. What are your short and long term goals? Are you currently living at home, but want to get your own place? Do you have an emergency savings account set up in case you lose your job? These are all things that you should budget for. Also keep in mind future expenses, like student loan repayment, that will be coming your way. Typically six months after graduation, your loans will exit their grace period and you will need to begin making payments. Make sure you’re prepared for repayment by following these four steps.

Savings

Ever heard of the term, “pay yourself first?” This is a phrase typically used for any type of savings or retirement plans. Pay yourself first means putting a specified portion of your paycheck to savings or retirement before spending anywhere else. The best way to do this is to set up a direct withdrawal from your account whenever you get paid. That way, the money is already in your savings or retirement account before you even see it. If you have money for savings, there are two areas you should focus on to set yourself up for financial success: retirement and emergency funds.

Saving for retirement as early as possible gives your money more time to grow before you retire. According to Bankrate.com, if you save $2,000 a year starting at age 25, you would have approximately $560,000 in retirement savings by age 65, assuming 8 percent annual growth. If you save that same $2,000 a year and have the same 8 percent growth rate, but don’t start until age 35, you will only have $245,000 by age 65. That is a loss of $315,000 just because you started 10 years later.

Emergency Savings

An emergency savings fund money you save for emergencies only, like a loss of a job. It is typically suggested that you have enough emergency funds to cover at least three to six months’ worth of living expenses. For example, if you have $2,000 in monthly living expenses, you should have anywhere from $6,000 to $12,000 saved in your emergency savings account. People that don’t have emergency funds and lose their job can often end up living off of credit cards with high interest rates. This can not only put you in debt that you may have a hard time getting out of, but it will also hurt your credit history, which can take a long time to rebuild.

It may be difficult at first, but saving early in life will benefit you in the long run. Accounting for a realistic salary and sticking to a budget that allows you to put a little money away lays the foundation for a fiscally responsible future. Be smart with your money and you’ll be on your way to a financially successful life.

Spring break is a time that college students look forward to all winter. It’s your chance to escape the rigors of the classroom and relax on a warm beach or other exciting destination. Although spring break can be fun, the costs associated can add up quickly. With a little planning and preparation, you can enjoy a week away from studying without emptying your bank account. Use these five planning tips for a successful spring break.

1. Set Your Budget

The best thing you can do is plan your spring break trip a few months in advance. This will not only give you ample time to get everything organized, but you’ll have more time to save and plan for your trip. Determine what your budget is and let that guide you’re planning. Then, take the time to research destinations and estimate the costs for each option. Transportation and lodging will likely make up the bulk of your cost, but don’t underestimate your other expenses during your trip. You may find that some trips are just too expensive based on your resources and budget.

2. Split the Bill

If you’re driving to your destination, ride with friends and split the cost of fuel. Additionally, you may be able to save on hotel costs by sharing a room with friends. Those extra savings can go a long way and will give you more funds for other activities during your trip.

3. Borrow – Don’t Buy

Create a packing list and figure out if there are items you don’t have but know you will need. It’s a pretty safe bet that buying something will be more expensive at your destination. Try to borrow anything you might need from friends or family, especially if it’s an item you’re unlikely to use after the trip. Try your best to anticipate everything you’ll need during your trip and pack accordingly.

4. Find Fun Closer to Home

Although it sounds great to take a big trip somewhere far away, you can have just as much fun trying new things closer to home. Remember, the entire purpose of spring break is to take a break from studying, relax, and enjoy yourself. Sometimes, that might simply be going home to see family and friends. And the best part of that kind of spring break is you won’t have to spend much money at all! Check out tourist destinations in your current city to explore new activities. You’d be surprised at how many things are nearby that you may have overlooked previously. Get creative and enjoy yourself.

5. Pay as You Go

Ideally, you want to be able to pay for your spring break trip with savings and not use high interest rate credit cards or even student loans to fund your adventure. Again, try to set a budget for your trip and then keep your spending within your budget. Don’t be tempted into spending more than you have or feel pressured into trying to keep up with someone else’s crazy spending sprees. Spring break can create memories that last a lifetime, but you don’t want create a financial burden that lasts a lifetime either!

Enjoy your spring break and the time away from your classes. Remember to be safe and protect yourself and your belongings while traveling. A little planning and budgeting will help you have a great time and feel good about your finances when you return.

Recent surveys and studies suggest that many young adults lack basic money management skills. Too often, students enter college at a loss for managing their personal finances. College may be the first opportunity you have to experience some independence, and may be the first time you are faced with budgeting and making financial decisions on your own.

One of the simplest, yet most important steps to controlling your finances is budgeting. To start the process, determine your take home income and total expenses. Then break it down to a simple formula:

Income – Expenses = Positive or Negative Outcome

As you can probably guess, you want to end up with a positive outcome. To accomplish this, you need to spend less than you earn. It may sound easy, but it can be difficult. In order to calculate this number, you’ll want to sit down with a list of your monthly expenses. Worksheets like this one can help ensure that you’re accounting for everything – even that daily latte.

Here are some steps to get you on track to creating a budget and taking control of your financial future.

Know your income sources.

This is usually pretty straight forward. It’s typically money you earn from a job, but if you’re a student it can also be money you’re receiving from financial aid sources (grants, scholarships, or loans), money from your parents or other family members. To ensure your funds last the entire semester, you may need to average out your financial aid to a monthly amount.

Identify your expenses by using a daily spending diary.

Fixed monthly expenses like rent, car payments, insurance, and any other expenses you pay every month are easy to identify. The daily spending diary can help you track your variable expenses like food, entertainment, and clothing. After tracking of all of your expenses for a month, you may be surprised at where your money is going.

Figure out needs vs. wants.

When looking at your expenses or potential purchases, it’s important to make a distinction between “needs” and “wants.” There are some things you absolutely need – like housing and food. However, some things may fall into the “wants” category, like frequently eating out.

Find room for improvement.

After you’ve identified all of your expenses, find areas that can be reduced or even eliminated. Remember, you want to spend less than you earn. That goes for credit cards, too. It’s easy to spend what feels like “free money” but that debt can catch up with you quickly with interest.

Stick to it.

The last step, and possibly the most difficult, is to stick to your budget and resist the temptation of unnecessary spending.

After you’ve crafted your budget, stick to it each month, then evaluate how you’re doing. Are you staying within your budget? Are there problem areas you need to address with some of your expenses? You can find more money saving tips here to keep your expenses under control.

After you’ve created your budget, you’ll start to experience the benefits.

  • Ensure you don’t spend money you don’t have
    • Far too many of us spend money we don’t have using credit cards or student loans. A good tip is to only use credit cards when you can pay the balance each month and only use student loans for what you need (not want).
  • Shed light on bad spending habits
    • Building a budget forces you to look at your spending habits. You may find areas where you are spending money on things you don’t really need.
  • Leads to a brighter future
    • Budgeting allows you to position yourself for a more successful future. It’s far easier to “live like a student” when you’re actually a college student as opposed to trying to climb out from under a mountain of debt later.

Budgeting doesn’t mean spending as little money as possible or feeling guilty about every purchase. It’s about knowing your limits and making sure you have control of your finances.

The first few years after college can be a challenge for anyone—especially when it comes to financial independence. Between finding a job and a place to live, paying down student loans, and maybe even starting a family, the financial decisions you make today can impact the rest of your life.

But don’t decide to move in with your parents just yet. By establishing smart fiscal habits in your 20s and 30s, you’ll be well on your way to enjoying a more comfortable lifestyle both today and in the future.

1. Finding a Job

The first step toward financial independence for anyone is finding a source of income. Your salary will determine what you can afford in all other aspects of your life, including where you can live and what kind of lifestyle you can support.

  • Be a creative job seeker, and don’t limit yourself to traditional job-search methods. Expand your network, be active and professional on social media, and attend industry events.
  • Recognize that you may not get your dream job right out of college. You may have to pay your dues with one or more entry-level positions before getting to the position you’ve always imagined for yourself. And that’s OK – as long as you’re building a resume that supports your chosen career path, you’re on the right track.
  • It’s important to know your worth and position yourself as a competitive job seeker in your industry. What are your peers making? What’s the average salary in your industry and region? Educate yourself so that you can intelligently campaign for fair compensation when it comes time to negotiate your salary.

2. Making a Budget

Once you have a steady source of income, you can create a budget to make sure you don’t overspend. Consider using a budget worksheet to make the process quick and easy on your journey to financial independence.

  • Calculate how much you spend on set monthly expenses, including rent, car payments, insurance, student loan payments, and utilities.
  • Look through your recent bank statements to estimate how much you spend on other expenses such as groceries, transportation, clothing, dining out, etc.
  • Subtract your monthly expenses from your monthly net income to determine your monthly spendable income. This is how much money you have to spend on extras each month. Don’t go over this number unless you want to start dealing with the cycle of debt.
  • Are you spending more than you make? Then it’s time to rethink your expenses. Where can you cut back? Should you take on a roommate? A second job? Be realistic about your finances and do what you can to avoid relying on credit cards to pay your bills.

3. Choosing Where to Live

Housing costs are generally among the most costly monthly expenses. Each of the decisions below will significantly impact your bottom line.

  • Are you willing to relocate for work? While some people are set on living in one particular city, others are more open-minded when it comes to their job search. Opening up your search to other cities may give you better options both in terms of pay and position.
  • How much does it cost to live in the city of your choice — and can you afford it? Some cities are notoriously expensive for renters, and it may be difficult to pay the high costs of rent on an entry-level salary.
  • Will you live alone or with roommates? Obviously, flying solo can come at a high price, but living with roommates has its own set of challenges.
  • Do you want to rent or buy? Buying can be a wise investment, but not all young adults are qualified to purchase a home. If it’s something you’d like to do in the near future, start by building your credit and familiarizing yourself with the real estate landscape in your area.

4. Managing Student Loan Debt

The average student graduates with about $30,000 in student loan debt. While you may be able to defer your payments while in school or residency, eventually you will have to start tackling those payments. After housing, this is often one of a graduate’s most significant monthly expenses.

  • Your post-graduate student loan bill shouldn’t be a surprise. Know how much you’ll owe – and have an idea of how you’ll pay for it – before you even start college.
  • Learn more about the federal loan repayment plans for which you are eligible and what your private loan payments and interest rates are at this time. Check your private loan statements or your lender’s website for this information.
  • Consider whether refinancing your federal and private student loans can make your monthly payments and even your interest rate lower. With U‑fi, there are no application or origination fees and you could end up saving yourself thousands of dollars over the life of your loan.

5. Planning for the Future

While at times it may be difficult to imagine life beyond your next paycheck, it’s critical to think about your future financial independence.

  • Family planning – Do you have plans to get married, start or expand your family? It’s a good idea to start saving for those milestones early on.
  • Retirement savings – 65 may seem like a long way off, but you’ll eventually thank yourself for packing back even a small amount of money toward your future each month. Start early and it will add up quicker than you think.
  • Insurance – You’ve enjoyed the benefits of your parents’ insurance policy for most of your life, but being an adult means buying your own health, car, and home or rental insurance.

Complete financial independence after college may seem intimidating at first, but it’s also exciting. Embrace the challenges, but reach out for help when you need it.