Financial Planning for New College Graduates By Justin F. Shaw, CEO of Advanced Financial Concepts
Despite living through a tight economy, students preparing now to graduate from college should not despair regarding their financial future. Instead, they should use the current economy as inspiration to create a solid financial plan for the future and plant the seeds of a more secure retirement.
In addition to finding employment, developing a plan to pay back student loans should be a first priority for new graduates. Whether the repayment plan lasts 10 years or 30 years, students should take steps to start paying early and keep paying their loans back.
Second, new graduates should develop a routine of tracking their spending habits and limiting their consumption. Keeping credit card spending to a minimum and staying current is also a crucial practice to learn at this age.
Third, new graduates should start saving. Even if they start with only a minimal amount, learning to set aside money for savings and investments sets the tone for a lifetime of sound financial practice.
Finally, turning dreams into concrete goals will help new graduates move into their future. Rather than thinking about becoming wealthy, graduates should establish solid goals for income savings that can be measured and updated as their career progresses.
About Advanced Financial Concepts:
Based in Houston, Texas, Advanced Financial Concepts is led by Justin F. Shaw, CFS, RFC, and is backed by a team of highly trained financial advisers.