College Graduates: Build Wealth by Avoiding 11 Common Money Mistakes After Landing 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.

Before you sign a lease for an apartment or purchase a new car, avoid the most common money mistakes made by college graduates.

1. No Emergency Fund

In this next phase of your life, it’s essential to save money, specifically for emergencies. When you least expect it, your car may need a repair, you need expensive dental work, or you perhaps get laid off from your job.

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

Living beyond your income is a recipe for financial disaster. Your goal is to spend less than you earn so you can save money and invest some of your earnings.

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.

7. Turning Down Free Retirement Money

The best time to start contributing to retirement is now, especially if your company is giving you free money for your retirement account. Many employers increase your account by matching part or all of your contributions.

8. Skipping Health Insurance

You’re young and healthy and rarely think about big doctor’s bills. Should you break your leg skiing or hurt yourself playing basketball and require surgery, you may be looking at a very high bill if you don’t have health insurance.

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