TAKING CONTROL OF YOUR FINANCES POST-GRAD

Friday, April 8, 2022

As a recent graduate, you likely have your first job and are making more money than before. This life transition also brings new major goals, such as getting your first car, finding a new apartment, taking the next step with a partner and planning a future together. With a host of new priorities and responsibilities, having a plan on how to handle your finances is important. Financial planning might seem challenging, but there are many opportunities to set yourself up for success.

Financial planning involves taking a comprehensive look at your financial situation and creating a specific plan to reach your life goals. Good planning can help you establish the right financial habits to ensure you don't fall into the cycle of debt. Are you ready to take control of your finances?

Here are four tips to help you start off on the right foot!

Create a Budget

The choices you make post-grad have the potential to impact your financial future. Budgeting is a powerful tool that can help you reach those next steps, such as buying a house or preparing for retirement. A budget is a system that helps track your spending and determine how much money is available to spend over a period of time. Ready to get started? YNCU’s household budgeting tool can help keep you organized as you learn how to manage your money and plan for the future.

Establish Savings Goals

Once you’ve created a budget that reflects your needs, set some savings goals. This will help you understand your financial priorities and what you want out of life. Whether that be to get rid of debt or buy your first home, establishing savings goals will allow you to be more deliberate about your spending and saving. YNCU’s free financial goals worksheet is a great resource to help you set short-term and long-term goals. Writing down your goals is an effective way to track your progress and hold yourself accountable.

Build Your Credit

Did you know having good credit comes with perks? Establishing good credit can provide access to many savings and benefits, including lower-interest rates, loans and credit cards. As a young adult, this is important to save money and reach your financial milestones. There are many ways to build your credit, such as paying your bills on time, getting a secured credit card and paying off debt.

Save for Retirement

The sooner you start saving for retirement, the easier it will be to reach your financial goals later in life. There are many different ways to save for retirement, but the easiest way to get started is by opening a Registered Retirement Savings Plan (RRSP). When you contribute money to an RRSP, your funds are tax-sheltered, which means your investment isn’t taxed until the year the funds are withdrawn, allowing the total value to grow quickly.

Setting some guidelines for saving after graduation will provide peace of mind knowing that you have a plan for the future.

Interested to learn what retirement savings options are available to you? Reach out to one of our advisors to learn more here.

We hope you find these tips useful as you start to build your financial plan. If you need help getting started, our team is happy to help! Book an appointment online to meet with one of our experienced financial advisors who will design a custom plan to meet your needs. Don’t forget to follow us on Facebook, Instagram, Twitter or LinkedIn for more honest money talk tips!