Graduating from college is a major life milestone; one that brings about excitement for the future and possibly worry about being financially stable. As you transition into a new job, one of the most important things you can do is save money and pay off outstanding debt. To make the transition just a little easier, here are four ways to get your finances in order.

Determine How Much You Have to Spend

Creating a budget is the best way to manage your money. Write a complete list of your expenses and all income sources. You should include recurring expenses, money you use for entertainment, and your savings. Since the goal is reducing your overall debt, you may want to think about refinancing your student loans. If you have poor or no credit, you could look into student loan refinancing with a cosigner. Having a cosigner with good credit can help you roll your loans over into one, which can lower the interest rate and monthly payment, too.

Build a Nest Egg

Even if it’s only $50 a month, you need to start saving for the future. Your savings account contribute will grow over time, so don’t worry that you can’t save hundreds each month. At this point, focus on consistency and saving as much as you can.

Know Your Credit Score

When you were in college, you may not have cared what your credit score was. But now that you’re out in the real world, it’s another story. Having a low credit score can be just as bad as having poor credit. That’s why it’s important to find out your score and find ways to improve it. If you never had a credit card before, you can for ones that build credit. If you already have a student card, and having been paying on it regularly, you can request to swap it for another one. Just be sure that the interest rate isn’t too high. Having a higher limit isn’t worth it if you can never pay it off in full.

Lifestyle Changes

Being a college student was all about being carefree and focusing on your studies. But now that you’ve graduated, you might need to change the way you live. If you ate out most days, you need to learn how to cook. Restaurants are notorious for marking up the price by 300 percent or more, so the same dish that cost $25 in house could be made at home for at least half the price. You also need to rethink the way you shop. Look for discounts on the products you use the most. Depending on the product, it’s usually more cost-effective than making one-off purchases.

Move Home

If you haven’t already, you may want to move home with your parents. Living at home can help you save money on rent and let you focus on creating financial stability. That’s not to say you shouldn’t pay rent, however, you can probably save a lot more living at home when compared to living on your own or with roommates.

Avoid Buying a New Car

Unless your car is a complete lemon, you should hold off on buying a new one. Adding a car payment into an already tight budget may end badly. If you really need a new car, you could look for a used one or see if anyone you know is looking to sell.

Buy Health Insurance

If you’re still on your parents’ policy, then you can hold off. However, if you aren’t, you should buy your own policy as soon as possible. Young, healthy grads usually have better premiums than someone who is older or has pre-existing medical problems. At the very least, you can buy a catastrophic plan, which will cover you in case of injury or illness. If you can’t afford coverage, research the different types of subsidies youth state offers.

Track Your Expenses

You also need to keep track of how much you’re spending. Even with the best intentions, it’s easy to overspend or buy things are forget that you did. If you don’t want to use pen and paper, there are plenty of mobile apps you can use for free. You can input your monthly income and expenses and the app can then keep track of your spending.

Find the Right Job

Everyone has a dream job in mind. The thing is, that job might not pay enough to make it worth having. While entry-level positions usually pay less, that doesn’t mean you need to work for free. You need to know your worth and apply to jobs offer appropriate compensation. Take inventory how much people in the role you’re applying for in your state. Also, review your skills and accreditations and make sure that these are being accounted for as well.

This article appears in Jan 1 – Dec 31, 2023.