By Anthony DeSalle, President & CEO, Crest Savings Bank
More than 70 percent of college graduates begin their career owing more than $37,000 in student loans. Considering the additional living expenses they’ll soon face, they would be wise to focus on their financial future now. Crest Savings Bank has highlighted six money moves to position them for financial success on their next phase of life.
- Live within your means. Supporting yourself can be expensive, so take time to create a budget before you find yourself struggling financially. Calculate the amount of money you’re taking home after taxes, then figure out how much money you can afford to spend each month while contributing to your savings. Don’t forget recurring expenses such as student loans, monthly rent, utilities, groceries and transportation expenses.
- Pay bills on time. Missed payments can hurt your credit history for up to seven years. It can affect your ability to get a job, rent an apartment and get a loan, even the interest rates you pay. Take advantage of automatic payments and reminders for regular expenses like student loans, car payments and phone bills.
- Avoid racking up too much debt. Understand the responsibilities and benefits of credit. Shop around for a card that best suits your needs, and spend only what you can afford to pay back. Credit is a great tool, but only if you use it responsibly.
- Plan for retirement. Now is the best time to start planning for retirement. Contribute to retirement accounts like a Roth IRA or your employer’s 401(k), especially if there is a company match. Invest enough to qualify for your company’s full match – it’s free money that adds up to a significant chunk of change over the years.
- Prepare for emergencies. Hardships can happen in a split second. Start an emergency fund and do your best to set aside the equivalent of three to six months’ worth of living expenses. Put your tax refund toward saving instead of an impulse buy.
- Get free help from your bank. Take advantage of your banks’ digital banking tools that let you check balances, pay bills, deposit checks, monitor transaction history and track your budget.
Visit us online at www.crestsavings.bank or stop by one of our locations to see how we can help.
