Dear Readers,
This is always an exciting time of year as new grads--and their parents--anticipate the opportunities and challenges that lie ahead. For young people just starting out with a job and their own place, the sense of freedom can be pretty awesome. For parents, there's a sense of pride as well as the hope that their kids can handle the new financial responsibilities that come with this new phase of life.
To help today's new graduates get a running head start--and to help parents cheer them on from the sidelines--here's my list of Top 10 Financial To Do's. They don't all have to be accomplished right away but, once they become good money habits, they'll help create an ongoing sense of both personal and financial accomplishment.
- Live within your means--Having a steady paycheck can feel pretty freeing--as long as you realize it has its limits. To make sure you have enough to live on, take a look at what you need vs. what you want. Start by adding up essentials like rent, transportation, groceries, utilities, student loan payments, car payments, etc. Don't just guess--write them down or use an online budgeting tool. Now subtract this amount from your take-home pay. What you have left is what you can direct toward things you want. Maybe you'll have enough for everything, maybe you'll have to make trade-offs. The important thing is to realize that you're in control. Want to splurge? Great--as long as you're willing to pass on something else to pay for it.
Keep these 10 things top of mind and you'll be ready for the next adventure!
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Looking for answers to your retirement questions? Check out Carrie's new book, "The Charles Schwab Guide to Finances After Fifty: Answers to Your Most Important Money Questions."
This article originally appeared on Schwab.com. You can e-mail Carrie at askcarrie@schwab.com, or click here for additional Ask Carrie columns. This column is no substitute for an individualized recommendation, tax, legal or personalized investment advice. Asset allocation and diversification cannot ensure a profit or eliminate the risk of investment losses. Where specific advice is necessary or appropriate, consult with a qualified tax advisor, CPA, financial planner or investment manager. Diversification cannot ensure a profit or eliminate the risk of investment losses.
The information on this website is for educational purposes only. It is not intended to be a substitute for specific individualized tax, legal or investment planning advice. Where specific advice is necessary or appropriate, consult with a qualified tax advisor, CPA, financial planner or investment manager.
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