Here are a few financial tips for recent - or soon to be - college grads.
Tip 1: Review your student loans.
The place to start when reviewing your loans is to find out when your payments start. Never miss a payment or pay late because doing so can wreck your credit. Next, check to make sure your loans have fixed interest rates. Try to consolidate any variable rate loans into a fixed rate loan to avoid a surprise rate increase in the future. Lastly, take advantage of special incentives offered by your lender such as a reduced interest rate for setting up automatic payments.
Tip 2: Start a cash reserve.
Start by setting aside whatever you can, even if you can’t reach the recommended goal of 3 to 6 months of living expenses right away. Just having a few hundred dollars saved to pay for emergency expenses can help you avoid building up debt that can haunt you for years. Check out www.bankrate.com to find fee-free places to stash your cash.
Tip 3: Take advantage of your retirement plan at work.
If your employer offers a 401(k), 403(b), or similar retirement plan, make sure you sign up as soon as you're eligible. This will help you get a head start on retirement, and most plans offer matching contributions that can help boost your savings. You should at least contribute enough to get the full match offered, if not more.
Tip 4: Shop around for auto insurance.
If you were on your parent’s auto insurance, don’t automatically stick with their company. Shop around and make sure you find the best deal for yourself. You can use www.insweb.com to speed up your comparison shopping.
Tip 5: Get renters insurance.
Renters insurance covers things like your electronics, furniture, clothes, and other items if they are stolen or damaged. It's inexpensive but many people never think of getting it. Going through the same company as your auto insurance can save you money.
Tip 6: Start setting financial goals.
It’s never too early to start setting financial goals. The earlier you start planning for goals like buying a home and retirement, the easier it will be to save enough money to accomplish them.
To learn more about our company - and find out how we are different from other financial advisors - call (210) 587-6433 or visit www.VannoyAdvisoryGroup.com.
