eMoney Advisor – Graduating Into Financial Freedom

Director: Kelly WaltrichDesigner/Animator: Mathieu Champagne

You did it.

You worked hard, got your degree, and now you’re headed into the “real world”.

Soon you’ll be landing a job, renting an apartment, and probably supporting yourself financially.

If you didn’t learn much about managing your finances at college, feat not.

Here are a few tips to get you started.

Make a budget.

It doesn’t have to be complex. Start with your monthly income. Then list out your fixed expenses like rent, car payment, and utilities.

Set aside a portion of your paycheck for savings. What is left can be used for variable expenses like food, clothing, and entertainment.

Keep track of your spending for a few months and adjust as needed.

Charge responsibly

If you can’t afford it, don’t charge it.

Amassing credit card debt can have a negative impact on your credit history – even if you pay off the debt.

So choose one credit card and get rid of the rest.

Then think of your card as real cash – and pay off the balance in full each month.

Consider contributing to your 401(k).

If your new employer offers a retirement savings account, consider investing in it – 5 to 10 percent of your salary is a great start.

If your employer matches 401(k) contributions, try to contribute at least enough to qualify for the full match.

You’re embarking on one of the most exciting times of your life. Establishing good spending, saving, and investing habits now…

…will set you up for a great financial future.