Even though every student will have one thing in mind, that is student loan when it comes to developing some financial plans; now it is high time to get serious about money. If a student is heading out on his or just graduated, there are few things he should keep in mind about managing his finances. You can try this out here.
Just Start Saving
There are many things for which one must start saving. But the first among them is saving for retirement. This may be boring for many people but remember that it is one of the critical advice which one can receive. It can be very less but start saving for retirement. Many graduates don’t know where to start. So, they can start with 410(k) which is usually offered at their workplace. In case if it is not, then choose Roth IRA.
Building emergency fund
Different financial advisors may suggest prioritising differently. But most of them have the opinion that one should start putting more money for savings account than to retirement fund. This is because there will be some unexpected costs may be like moving to a new place for a job. For emergency, there should be an amount which is at least 3- 6 months of your expenses. In the case of an unsecured situation, one must always think of saving more.
The emergency fund must be built by keeping aside money without which you can lead a healthy life. So, even after keeping it aside, you should be able to move on comfortably. It is better to set up an automatic transfer in this case. So, every month, some amount should go towards a savings account. Always remember that building up finance won’t happen quickly; it takes years.
Student loan and the best plan
Always try to build some arrangement to get rid of student loans. Usually, there will be some months of grace period like six months. So, there will be six month time after graduation for finding a job and to gather for student loan payments. Before even start paying in the grace period itself, start collecting complete information about loan servicer, amount to be paid, and also course. Always be clear on monthly payments that must be made.
Understand all about health insurance options
There will be a few options, and the best part is if the graduate is below 26 years, there is no need to worry. He can stay on parent’s plan if in case that makes sense in his family. Otherwise,he should start shopping around in the market and choose the best one. He can also think about joining the plan which is provided by the employer.