Money Hacks for New College Grads
Whether you're currently in graduate school or working your first job after earning a college diploma, life after earning a degree can include financial challenges. Many young adults find it tough to set aside any money for a rainy day, stay current on student loans, afford high grocery prices, cover rising rent costs, and stick to a monthly budget. For most working adults who are new to post-college life, the first step toward financial solvency is getting control of one or more student loan payments. After that, try to make saving money a habit, and learn to shop wisely for necessities. Here are details about some of the most potent money hacks for recent graduates.
Refinance College Loans
When it comes to education debt, the very good news is that anyone can refinance student loans and end up with a lower monthly payment, new terms, and potentially much more favorable rates. Plus, the entire application and approval process can be done online in a matter of minutes. The whole point of refinancing school loans is to restructure the debt and combine several obligations into one, all with a lower payment. Young working people often find that their credit is in better shape after college, which is always an advantage for borrowers. Another common benefit of a refi is longer repayment periods.
Save a Fixed Percent of Income
Even if you can only afford to set aside one percent of your monthly income, do it, and make the process automatic by signing up for a payroll savings scheme at work. If your employer doesn't offer a plan, ask your bank to place a percent of each direct deposit paycheck into a segregated savings account. The aim is to teach yourself to save every month, regardless of the amount. Later, you can always adjust the percentage upward as your income rises.
Use Coupon Apps for Groceries
Coupon apps are no longer oddities that offer a tiny amount of savings on weekly grocery and household items. The entire discount app niche has become huge and sophisticated. Careful shoppers can leverage the power of two or three apps at the same time to reduce their regular shopping bills by as much as 10 percent. Experiment with apps that appeal to you and offer savings at the places you already shop. Avoid paying to join an online discount shopping app club. That's because the best ones are free to use. The companies and websites that offer them make their money from corporations that sell goods in retail stores.
Make a Lean Budget
It's important to remember that you don't need to live on a lean budget for the rest of your life. The goal is to use it for about a year and then adjust all the income and expense categories. Creating a tight budget document is an exercise in self-exploration. When you build a budget from scratch, you're bound to discover what it means to subsist on the bare essentials of life. However, the spartan lifestyle can be a great learning experience and is an effective way of getting personal finances under control.