So you've got that diploma in your hand, and you're ready for the next stage of your life to begin. But how do you finance that future?
While you were in college, you may not have been lured into those "free food if you participate in this important offer" coupons, which only turn out to be credit card offers. You may have even been successful in avoiding the many loan offers that have come in the mail.
Avoiding too-good-to-be-true offers may be the first step toward graduating without huge credit card debt, but now you may be moving into your first apartment, buying your first car or even planning a family of your own. So, how do you afford to do it?
"Budget and save cash whenever possible," said Michael J. Reilly, an experienced certified financial planner with McManus Reilly Stewart.
The firm's website lists several tips and links for recent graduates to better manage their finances. The links vary from loan relief to paying for life insurance.
"It's not quantum physics - it's the basics," said Reilly, who suggests setting minimal goals and beginning an emergency fund now that will save students lots of stress later.
According to usatoday.com, the average college graduate walked the stage last year with about $19,000 in debt. Because college tuition rises annually, it isn't uncommon for graduates to have so much student loan debt.
According to youngmoney.com, the average student graduates with about $2,700 in credit card debt.
Unlike student loans, which usually have low interest rates, credit cards usually carry high interest rates, service charges and high late fees. For some, guidance is necessary to lift the burden of unpaid balances on credit cards or loan payments.
Dave Ramsey, author of several books on personal finance and a national syndicated talk show host, has helped many people get out of debt and save for the future. His book, "The Total Money Makeover," categorizes several steps that might aid students when beginning a successful financial plan. Like Reilly, Ramsey suggests having an emergency fund available. Because personal financial advisors ask for a fee, Reilly suggests that students take it upon themselves to tune in to Ramsey's radio show on AM 990. The nationally recognized host is familiar with saving money and spending it wisely, Reilly said.
Reilly has seen quite a few common mistakes in his career. One of the most familiar pitfalls students experience, Reilly said, is "using credit cards for large purchases." Reilly said retailers know when customers are buying something more expensive than they can afford, and the seller takes advantage of that.
"People just finance way too much," Reilly said. "Budget and pay cash for it."
Www.loantolearn.com is a site that lists a few simple tips to quickly and efficiently pay off loan payments.
Experts seem to agree that college graduates and soon-to-be-graduates need to start saving a few pennies for those rainy days ahead and be conscious of the things they buy. It's a small price to pay now, they say, for a comfortable life later.
