| 5 frugality tips
for college grads |
| By Lucy
Lazarony • Bankrate.com |
|
So the real world is turning out
to be a cold, cruel place after all. Don't have a personal postgraduate
financial meltdown -- if times are tight, here are five quick frugality
tips to keep your income within hailing distance of your outgo.
1. Sock away some cash.
Having a small emergency
fund can take a lot of the stress out of your financial life.
That way if your job search takes longer than expected or your car
needs a major repair, you know you'll be covered. Having three to
six months' living expenses in a savings account or money market
would be ideal. Do the best you can. Why not tuck away the $500
you got at graduation?
2. Be thrifty.
Dressing for a first job can be pricey. Be sure to check out
the career-wear bargains available at thrift stores. "Especially
in urban areas, top-notch thrift shops can cut your costs by 75
percent," says Nancy Dunnan, author of How
to Invest $50-$5,000.
3. Watch those cell phone bills.
Talking the talk with a cell
phone can get awfully expensive. Using a pre-paid phone card
can take a big bite out of your bill. "It makes you very aware
of what you're paying for phone calls, and it's often cheaper,"
Dunnan says.
4. Learn to cook.
"The money that twentysomethings spend on food and eating out
is mind-boggling," says Jason Anthony, co-author of Debt-free
by 30: Practical Advice for the Young, Broke, & Upwardly Mobile.
Eating
in can save you a bundle. So be sure to pack a lunch a couple
times a week and cut back on some evening meals at restaurants.
Why not have a casual dinner party at home and then head out for
an evening?
5. Join your company's 401(k)
plan. Once you enter the working world,
be sure to take advantage of an employer's 401(k) plan. Many companies
fully or partially match their employees' contributions. Most employers
let you sign on as soon as an initial probationary period ends.
Setting aside 10 percent to 15 percent of each paycheck toward retirement
is a good goal. If that's too much, start with 5 percent and gradually
work your way up. At the very least, contribute enough to qualify
for your company's matching contribution. "That's like free
money," says Beth Kobliner, author of Get
a Financial Life: Personal Finance in Your Twenties and Thirties.
"It's really a no-brainer and something you should do."
Sheyna Steiner contributed
to this story.
|
