For those of you out there who have just finished another chapter of your life and graduated college, congratulations! You’re ready to take on life choices and decisions and you’ve officially entered adulthood. This means that you’re on the road to finding financial success and will most likely begin paying off your loans from the last four years. Although it can be a hard subject to think about, taking control of your finances post college life is attainable. By following these four steps, you can be on your way for financial success.

 

Calculate your Debt

As hard as it may be to think about how much money you don’t have, knowing how much you owe is crucial to come up with a plan to paying back your loans. Once you have established a number, write it down. This will allow you to keep track of your payback progress. When making monthly payments, it’s also a good idea to set up automatic payments. Automatic payments will ensure that your payments are always on time and establish a positive credit score and a good relationship with your bank.

 

Keep an Eye on your Credit Score

College is about learning from your mistakes, right? As soon as you get out of college ( or even before), you should keep an eye on your credit score. Whether you’ve applied for loans/ credit cards or not, monitoring your score will help protect you from fraud and identity theft. It’s also important to keep in mind that checking your credit report too often can actually hurt your score. If you’re planning on taking out a mortgage or big loan this year, keep the credit pulling to a minimum, such as 3 times a year. However, checking your monthly FICO score is a great idea to have an idea where your credit stands. FICO works by predicting what your actual score is. It’s usually offered with online credit card statements, therefore you can look at it as much as you’d like without worrying about your score going down.

 

Emergency Savings

Although setting up a 401k and retirement is important as a post college student, it’s more important to have an emergency savings account set up as soon as you can. If you come out of college with a job lined up, consider yourself lucky. Otherwise, you’ll need to set up a plan for living costs, such as moving back in with your parents or finding freelance work. When your income isn’t steady, an emergency living plan is more important than setting up a retirement plan. The reality is that you went to college to find a job, so eventually you will find one. But some unexpected costs may come up, such as car damages, shopping for interview clothes, or other emergencies could potentially come up, so you have to be ready.

 

Create a Budget

My best overall advice for college graduates, is to start thinking about your future monthly expenses before you graduate so that you’re not shocked when it comes to paying your bills post college. Then, create a budget to keep in mind. This will also help you in the long run when you make more money than you’re spending, allowing you to create savings plans.