Graduation can be an exciting time for young adults as they embark into a whole new world. Yet, it can also be overwhelming for many to face new financial responsibilities in adulthood. Many people envision adulthood as a state of maturity, but often overlook the idea of fiscal maturity: the act of taking ownership of your financial affairs and making the best decisions possible to balance todays’ expenses with saving for future goals.

The world of personal finances can be unforgiving, so we’re offering five tips to help you achieve financial success. By following these tips, you can avoid some common financial difficulties that many new graduates encounter.

1. Budget and Spend Wisely

Graduation is an excellent time to reevaluate, or begin creating, one’s budget. You can start by opening up an Excel spreadsheet and tabulating your anticipated expenses, making it as in-depth and detailed as you’d like. The chances are that your financial status has changed since being a full-time student, whether you experience a gap in employment or must adjust for an increased income. Additionally, it’s likely that you are now responsible for more bills, which is something that comes with financial independence.

By seeing these numbers on a spreadsheet, organizing them, and figuring out exactly where you stand, you can have a better understanding of what alterations you might need to make in your lifestyle to make sure your bills are paid on time and you still achieve your goals. This might entail spending wisely rather than fluidly. There are several apps available to help with budgeting, such as Mint, You Need A Budget (YNAB), or Wally.

2. Put Your Bills on Autopay

Some companies, including many student loan providers, offer incentives for consumers who put their bills on autopay. By setting up autopay on your main bills, such as rent, utilities, credit cards, student loans, and other recurring expenses, you can take advantage of these incentives while also making sure everything is paid on time and you don’t get any late payment penalties.

3. Use Credit Sparingly

While it is true that one has to build credit in order to have credit, there are risks associated with credit cards, especially those with high interest rates. While it’s easy to make the minimum payment, it’s important to remember that you should only use credit cards if you can afford to pay the complete bill each month. You could spare yourself hundreds of dollars, or more, per year by avoiding interest charges, and you build your credit score at the same time.

4. Save for Retirement and Take Advantage of 401(k) Plans

Although it might seem too early to contribute to a 401(k) plan when you are beginning your career and just finished tossing your graduation cap into the air, the earlier you begin saving, the better you are preparing for your future. Even starting with small amounts, by investing early you will amass more money to support yourself in retirement. Furthermore, many employers encourage their employees to invest in 401(k) plans by “matching” the employee’s contributions. To see if you qualify for this win-win situation, check with your company’s HR staff as soon as possible.

5. Don’t Ignore Your Student Loans

Because of the rising cost of education, the typical college student graduates with $37,000 in debt and the biggest financial concern of many recent grads is their student loans. When you graduate, take charge of the situation and review the terms of your loan. You need to determine how much you owe and how your payments fit into your new budget.

The very first step to creating a solid financial base is to establish a cash reserve of at least 3-6 months of expenses. After this is established, and if your lender allows it, you may consider making extra payments and asking the company to put the additional amount towards the principal balance of the loan, rather than the interest. Paying more than the minimum can shave years off the length of the loan, save you money over the years, and help you qualify for a better mortgage or auto loan.

No matter your situation, reviewing your finances does not have to be an intimidating ordeal. Taking control of your finances early actually empowers you to set yourself up for a more stable and lucrative future.

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