Graduates: Don’t Fall Into These Bad Money Habits

by Elisa Adams

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So you’ve just graduated from college? Congratulations! You’ve been through years of grueling study and various social pressures and made it out the other end alive. Now it’s time your real life started, right? That new, independent life you’ve been dreaming of since you were young. Your education is finally over. It’s time to really get the ball rolling!

The problem here is that many students begin their life after graduation with several misconceptions.

And sooner or later the financial realities of your new life will come crashing down on you in an ugly fashion. From the beginning, you need to get very defensive about your funds.

Here are some of the financial mistakes graduates often make. Avoid them!

Rapid lifestyle inflation

We want to graduate from college and get ourselves a cool apartment. We want a seventy inch television screen, games consoles, parties, a whole host of other luxuries. Even if we don’t want to go crazy, we do often want to get our own place and start eating more than instant noodles.

This is something we can call a lifestyle inflation. The truth is that this shouldn’t be happening too quickly. Realistically, your best option is to stay at home for a while. Try not to change your financial lifestyle too much.

Not dealing with debts asap

Debts are unpleasant. Very unpleasant. So unpleasant that actually working towards paying them off makes them feel somehow more real, more of an invasive element of your life.

Sadly, debts are a reality that isn’t going to go away by you not paying them. They’re only going to go away if you do the opposite. Do your best to pay off a little every month. Do research into the best way to pay off student loans.

Expensive lunches

This is an alarmingly common error that graduates make. In fact, it’s something that a lot of professionals do. Once they start a new job in the big city, they start making a habit of going to local stories or eateries and getting food from there. Over time, this costs you a tremendous amount. Even at home, people aren’t doing themselves any favors.

Learn to cook – it’ll save you tonnes. Tasty pasta dishes and stir-fries can be made on the cheap. Start getting more fresh fruit and veg. They’re cheap (despite what some may tell you) and they’ll help keep your brain sharp. And stop ordering all that takeout pizza!

Not having a financial strategy

Don’t go living that ‘devil may care’ life. From the get go, you need to be on top of your financial game. You need to do research into the ways you can save money most effectively. You need to figure out what you’re going to do if things go wrong. You should make yourself aware of economical and political matters – they have a direct impact on what you can do with your money. And, last but not least, you need to come up with a budget!

Image Source: Pixabay

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