When you accept your diploma at your college graduation, you might think you're done learning for good. Time to take a step back and realize just how much you have left to figure out about life. You need to be educating yourself even after graduating. It's just reading textbooks but becoming financially literate. Here are money mistakes to avoid after graduating college.
Depending on who you ask, you could hear wildly divergent views on credit cards. Some will tell you that they're important to have in case of emergency, while others will tell you that they should be avoided by all costs. If you're approved for a credit card, you need to realize that you need to pay it off fast, or you'll be saddled with considerable debt. High interest rates can lead to you spending much more than you would if you had just paid cash or out of your bank account, with a check or debit card.
Even with a credit card, you need to stay within your means. If you want to buy something but you don't have enough money, ask yourself if you will when it's time to pay your credit card bill. Sometimes, you might no choice but to make a purchase that will take a few months to pay off. That's understandable, but you shouldn't see your credit card as money that magically generates out of nowhere.
When you go on a big grocery run, you don't just eat the vast majority of the food in one week, right? You understand that you need to make it last. Do the same with your money. A savings account is a must for anyone. Expensive emergencies can strike at any time. When they do, you want to have a safety net.
Put a decent amount of your weekly paycheck into savings. This could start off small, like ten percent, and gradually increase as the value of your account accumulates. Saving doesn't have to be for any particular reason either. Just keeping up the habit of socking away money can help you build character.
How someone spends their money is more important than how much they make. You could have a low salary and be financially stable, and you could have a high salary and be financially unstable. Your current money situation is likely largely based on the spending decisions you made.
Irresponsible spending habits can be big and small. Buying a house that you know will be tough to pay off is an irresponsible spending habit, as is always going out to eat. Just because you can afford something, it doesn't mean it's the right decision. When you're about to make any kind of purchase, ask yourself if you absolutely need it and if you're able to afford it at the moment. If not, you should put it aside. This kind of self-awareness will help you hold onto your money.
Post-college, you may have your first experience with paying bills. Things like energy, water, internet, credit cards, and student loans can be a lot to remember, but missing payments means you can incur penalties, such as having to pay more on your next credit card statement. Keep track of all your bills and their due dates. You can also set up auto payments so that the money comes right out of your account.
If you find yourself financially-strapped and unable to pay certain bills on times, know that you have other options. One is to take out a title loan for your car. With a title loan, you are lent cash with your car title becoming collateral. Once the loan is paid off, the title is yours again. Look into Illinois title loans online for further information on how a title loan could benefit you and how to obtain one.
You don't have to be rich to be smart with your money. Having limited funds can show just how practical you are with staying within the means of your budget and avoiding being buried in debt. When you know about common money mistakes, you know about what financial decisions to avoid making.