But you may also feel a sense of relief financially. With college costs higher than ever before it’s no wonder you might feel this way.
Still, if you’re a recent college grad you shouldn’t let down your guard. In fact, there are reasons graduates need to watch their budgets now more than ever.
1. Graduate School
If you’ve just graduated from college don’t let that fact allow you to relax a frugal budget. Especially if you plan to attend graduate school.
According to U.S. News & World Report, a graduate degree can cost from $20K to $80K or more. So, even if you have your bachelor’s degree already you’ll need to watch expenses. Otherwise your dreams of an even higher education could end before they start.
2. Moving Expenses
Presumably, no matter where a college graduate is living they will soon move elsewhere to start new employment. After all, education for employment is one of the reasons to go to college in the first place.
However, as a college graduate you need be mindful of just how much money it costs to move. Obviously it differs based on many things. Distance to new location, amount of stuff to be moved, and who is doing the moving are just a few.
Coming up with the money to move isn’t easy if you didn’t plan ahead for it. That’s one reason graduates need to watch their budgets.
3. Low Income
Not all college graduates enter the workforce with jobs that pay six figure salaries. Some have to make ends meet with jobs in the fast food industry, retail, or other lower paid services. For that reason it’s wise for grads to watch budgets.
Even with a degree it sometimes takes a while to build up your income to the level that you desire. If you’re not budgeting you could find your expenses outweigh your income.
4. Delayed Employment
Even worse that taking a job with low pay is not being able to get a job at all. That’s what some graduates deal with after graduation and it could happen to you too.
If you spend extravagantly upon graduation, it will be harder to regain control of your spending. When paired with delayed employment it could end up sinking you financially.
5. Avoiding Debt
Do you need another reason for graduates to watch their budgets? Avoiding debt is one of them. By spending carefully instead of wildly you can avoid adding more debt to your budget.
The faster you pay off your debt the more financially secure you will be. Budgeting carefully will help you gain that security you are looking for.
6. Student Loans Come Due
There is some debt you may not be able to avoid. For example, that of student loan debt you already incurred. But that is another argument for why graduates need to watch their budgets.
When student loan payments come due you need to be able to pay them. Not doing so could cause a poor credit history, among other things.
7. Money for Emergencies
If you keep careful tabs on your budget after graduating college you’ll be able to start saving for emergencies. Although your budget may still be tight, the sooner you do this the more piece of mind you’ll have.
8. Investment Opportunities
Graduates who don’t watch their budgets may not have the investment opportunities everyone else does. If your money is tight you may not have enough to invest. This means you are robbing your future self.
Conversely, watching your budget will allow you to invest even if only in small ways at first.
It’s true that without studying requirements you should feel a sense of relief when you graduate college. But you still need to watch your budget so you can take care of everything that matters most.
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Are you watching your budget now that you’ve graduated?