A Financial Checklist for Post-Graduates

If you’re a new grad starting your first real job, it’s time to start adulting, including being responsible for your own financial life. Here are a few items to help you stay on your feet: 

Create a Budget…
This may be your first experience with a regular paycheck, but also with regular expenses, so plan for how they’re all going to work together. There are plenty of apps to help you figure out what you can afford to spend, and then help you stick to the program. 

…And Then Keep Track of Everything
Write down everything you spend – including automatic monthly charges – and you’ll notice that you’re paying for things you don’t need, like subscriptions you never use anymore.

Pay Off Debts
Making minimal payments on credit card debts or student loans will chip off only small portions of the principal and stretch the total payments out for years. Make larger payments if you can, focusing on the most expensive debt first.

Save on Your Housing
Your biggest expense right now is probably rent, which means it’s also your biggest opportunity to save some money. There are several ways to do this: Take on a roommate, say, or look for a place in a less costly neighborhood.

Review Your Healthcare Options
In most cases you can stay on your parent’s insurance until you turn 26, even if you are offered coverage at your own job (which may be more expensive). But that coverage almost always ends at 26, so don’t wait till the last minute to arrange for your own coverage.

Get Your Own Car Insurance
You can generally stay on your parents’ car insurance only as long as you live with them in their home. After that, you’ll need to take out your own policy.

Look Into Renters Insurance
Renters insurance is generally not very expensive – under $200 a year in most states – and it can help keep minor events, like a burst water pipe, from spiraling into a highly damaging expense. It’s also required by many landlords.

Start Saving for Retirement
Yes, it’s still forty-odd years away, but the earlier you start putting money toward your future, the more it can grow. The easiest way: contribute to your 401(k) and maximize your employer match.