Throwback Thursday: Money Tips for New Grads

You're out of school and (if you're lucky) on the job. Next: a plan to manage your cash

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Financial expert Yoli Marie is on a mission to teach young adults about money.

It’s graduation season once again. If you’re seeking direction about how to manage your post-college finances, you’ve come to the right place. Here are some wise words from a past interview with Yoli Marie. The advice from her book “Financial Fitness for Young Adults” still stands the test of time.

If you’re among the young adults who have just graduated college and landed their first job, you’re probably excited about being on your own for the first time. Visions of the places you’ll go, the people you’ll meet, and the things you’ll buy are dancing in your head.

Not so fast. First, take time to create a financial plan. Yoli Marie, author of “Financial Fitness for Young Adults” (Financial Fitness Media; $17.99), is on a mission to help young people get their finances in order. In her book, she offers key advice to young people on how to get financially fit:

Take stock of your financial situation. Congratulations! You’ve got your first paycheck from your first “real” job with benefits. Before you start spending that money, make sure your spending is below what you can afford. Right out of school, do not attempt to live a lifestyle like your parents. You might be drooling over that four-bedroom house with a fireplace in every room and a pool in the backyard, but is it practical? If you’re living by yourself, it’s safe to assume you can scale back on the number of bedrooms.

If you find yourself unemployed or underemployed and wondering how you’re going to pay your student loans, consider staying home with mom and dad for a few more years until you’re on solid financial footing. In addition, contact your lender and ask for an economic hardship deferment or forbearance. Your payments would temporarily be placed on hold. You could also consider requesting an extended repayment plan, which would stretch out your payments and make them lower. However, be aware that you would end up paying more interest in the long run. Financial aid Website FinAid has additional information on repayment options.

Create a spending plan. Know where each of your dollars is going. Don’t think of a budget as a restrictive list of things you can’t buy, but a wealth plan that will help you reach your goals. Once you start your new job, make sure that some of your paycheck goes toward a retirement plan such as a 401(k) or 403(b). If your employer offers a match, contribute at least enough to get the match. It’s free money. Start contributing to that plan as soon as you’re eligible. There are many retirement calculators on the Web that can help you decide how much you should be putting aside.

Don’t neglect insurance. Insurance will save you a lifetime of trouble. If you’re renting an apartment, get renter’s insurance.  If, for instance, your lap top is stolen from your apartment, renter’s insurance would cover the cost of purchasing a new one. And don’t forget short-and long-term disability insurance. This will replace most of your income in the event that you are injured and cannot work.

 

ACROSS THE WEB
  • Debbie Hay

    I am so happy you wrote this article. I know you little cousin Amir really need to read this.

  • BARBARA PLUMMER

    I am so proud of my daughter. I have watched her as she has grown through life to envolve into this beautiful butterfly. Make sure you nurture your young adult and not let them fall into the financial hole we did when we were young because of the lack of knowledge. Let’s empower our young people. The Lord says “My people perish for the lack of knowledge”, so we are accountable to let them know.

  • YOLI MOM

    YOLI SAYS: I am the proud Author of
    “Financial Fitness For Young Adults”
    Available on Amazon.com
    http://amzn.com/0615301002

  • Anita Beckham

    Yoli, your mom is so proud of you and she talks about you all the time. This is a book that I will purchase, so my nieces and nephews can start out on the right track. I believe your book can probably help all of us, not just the young adults. May God bless you with much more success!

  • Anita Beckham

    Hi Yoli! Your mom is so proud of you, she talks about you all the time. I know I will be purchasing your book, I have nieces and nephews that will need to be prepared before they go out into this world. I’m quite sure your book can help alot of us, not just the young adults. May God continue to bless you with much more success.

  • http://www.blackenterprise.com Sheiresa Ngo

    Thank you. I’m glad you liked the article!

  • Daniel DeJesus

    Way to go Yoli :) and continued success babygirl!~

  • Penny Kelly

    Just graduated my first group of students (my 8th graders from 4 years ago) from high school. Will be purchasing a few copies as gifts for them. Good Stuff!