Avoid These 11 Common Financial Mistakes After Landing Your First Job

Congratulations! You graduated from college and landed your first job! It’s an exciting and scary new chapter all rolled in one. You’ll be making some serious money for the first time in your life, but you’ll also be responsible for some serious adult bills.

1. No Emergency Fund

Commit to building up an emergency fund that can cover six months of your basic living expenses. You can open interest-bearing savings account like an FDIC insured money market deposit account (MMDA) just for this purpose. This way, the money is readily accessible and earns a little interest.

2. No Monthly Budget

Don’t rush to sign that apartment lease with a breathtaking view without creating a budget first. Figure out your necessary expenses like rent, utilities, food, and commuting expenses.

3. Living Beyond Your Means

Your goal is to spend less than you earn so you can save money and invest some of your earnings. While it is easy to justify higher spending, you want to have some money left in your accounts after your year of hard work.

4. Getting Rid of Your Roommate

Sharing expenses with a roommate, you may not see very much may provide you with worthwhile savings. Those savings can give you the financial flexibility you may not otherwise have.

5. No Student Loan Repayment Plan

One of your most considerable new responsibilities will be to make regular student loan payments. Don’t put off paying these loans or extending the time further into the future.

6. Ignoring Your Company Freebies

There are different types of benefits that add meaningfully to your compensation. As a new employee, you may overlook some essential features trying to make sense of it all.

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