Important Finance Tips For Recent College Graduates

Article by Robert Manouk of Mlava

No matter what you have studied in college, it’s for sure that personal finances wouldn’t have been part of the curriculum. If there’s anything that’s true about this juncture in life, it is that the money-making decisions that you make at this time can determine how easy or tough your life becomes much later.

So here are a few important finance tips for college graduates as soon as you are out of college:

#1: Buying a new car is a distinct no-no

Since you are ready to join the workforce right after your college degree, the purchase of a car is considered to be a must but that isn’t true. Most students graduate college with student loans and credit card debt, and this will be a tough ask to pay for a new car along with these other bills. Opt for a used car instead while making a large down payment instead.

#2: Don’t buy a home right out of school

Most students who have just graduated right out of school tend to buy a home, thanks to the gift payments or co-signatures made by their parents. This indicates that you aren’t able to buy a home by yourself immediately.

Another reason why it is wiser to wait until a time when you are more settled to purchase a home instead of buying a home early is discovering that you will have to move to another city shortly for a new job. It will be difficult to sell the home immediately, and that means extra debt on your inexperienced shoulders.

#3: Avoid using credit cards

Perhaps the most vulnerable time when your credit card purchases can get out of control is when you are a young adult, thanks to the need for almost anything and everything. The best way to avoid your credit card debt to spiral out of control is to avoid using credit cards at all.