Money Management Tips for College Graduates

Money Management Tips for College Graduates

Saving money can be a challenge for many of us, and there are multiple ways to go about it. But one of the most successful investors of our time, Warren Buffet, has a particular stance on the issue:

“Don’t save what is left after spending; spend what is left after saving.”

– Warren Buffett

This means putting money into your savings account before you do any of your spending. It can be tempting to do things in the opposite order, so you may have to change your financial habits. The discipline required to make saving a non-negotiable priority can be difficult to cultivate. But it is so very important! When you don’t have savings available, the consequences can be dire.

Having a comfortable amount of money in your savings is often the first the line of defense when unexpected things happen. All it takes is a flat tire or an unfortunate accident to put you in debt. When you can’t use savings for unexpected expenses, you will likely have to incur debt to get out of an emergency situation. Depending on the circumstances, the debt can manifest itself in the form of credit card bills, payday advances, or collateral loans which can be particularly difficult to pay off.


According to a 2017 Go Banking Rates survey in which they questioned young adults ages 18 to 24 about the amount of savings they have in the bank, 46% reported having $0 saved. While that means 54% are saving, a large portion of this age group is woefully unprepared.


As a new graduate, having sufficient savings can help make the transition out of college more comfortable. If you are one of the thousands of graduates leaving college with debt, the average student loan borrower has more than $37,000 in student loans, adding more debt to your plate due to an unforeseen incident can add insult to injury. Finding the balance between paying off debt and saving can be tricky, but any amount you can save can be a helpful cushion to have in times of need.


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