Money Tips For College Graduates

Money Tips for College Graduates

18 Things I Wish I Had Learned When I Graduated College

When I graduated college, I had my first “big-kid” job and was making a decent amount of money for the first time in my life. It was extremely exciting. But it didn’t take me long to notice that even though I was making more money than I had up to that point in my life, my bank account was not growing. I was spending all the money I was making, but my 22 year old self didn’t care that much.

It wasn’t until a couple of years later when I was engaged to my now husband, that I knew something had to change. We had so many goals and a bright future ahead of us, but if we didn’t get things straightened out with our finances, there was no way we’d accomplish all of them.

So here are 18 things I wish I had learned when I was in college.

Money Tips For College Graduates

1) If you think only about today, your future self will be very upset

Being able to buy that house, go on that vacation, and retire one day takes a lot of money. If you are too focused on having fun today, your future self will be super ticked off.

Take the time to plan out what you’d like to accomplish in the near and distant future. Trust me, your future self will thank you.

2) When given the choice to learn from your own mistakes or the mistakes of others, always choose the mistakes of others.

There are so many people out there who are sharing their successes and their failures. Instead of doing it the hard way, and making those same mistakes, learn what worked and didn’t work for others.

Save yourself the pain and heartache and learn from the mistakes of those who have gone before you.

3) Choose life over money

At the end of the day, money will not make you happy. Enjoy life, and spend time with others. Don’t allow money to dictate what you can and cannot do. There are times where you will need to spend a little money in order to gain a once in a lifetime experience. While I don’t recommend going overboard with these experiences, try not to let them pass you by too often.

4) Don’t be afraid to ask for help

So many young professionals feel disempowered by their lack of financial education, and that is okay. What is NOT okay, is allowing that feeling to keep you from seeking help. If you are one of the millions of college graduates who never received a proper financial education, seek some help and maybe consider some money coaching.

5) Generous giving is one of the most satisfying things you can do with money.

There are a lot of things you can spend your money on in life; daily necessities, paying off your debts, housing, transportation, insurance, etc. Whenever I spend money on these things, I’m never inspired or delighted…

One of the budget categories I tend to “overspend” on is Giving, yet I’m never ever disappointed by that. In fact, most of the time I am overjoyed by the idea that I am blessing someone somewhere through the money I have in my bank account.

If you had to choose between paying your landlord rent or helping out a buddy who just lost their job, which one would be more satisfying to you?

6) Your net worth is not the total of your worth.

There are many lies that the world tells us are things we need to care about. Here is one of those lies – that the amount of money you have in your bank account signifies how valuable you are.

Your worth does not come from how much you have or how much you make. Your worth comes from the one who created you and how you use your money to glorify Him.

7) Don’t listen to just one source – verify.

Mom and dad may have one thing to say about money, but that doesn’t mean their right. Your professors, managers, pastors, or friends may have something to say about what you do with your money, but don’t take their word for it.

There are plenty of voices out there giving advice, but that doesn’t mean you need to take all of it. Compare each piece of advice that you get against other pieces of practical money advice. Come up with your own theories at times, but always be willing to change your mind if you find out that you are wrong.

8) Debt brings devastating destruction.

You just paid for one of the most expensive pieces of paper you will ever have – your diploma. Congratulations!

The excitement of this reality, however, wears away quickly when you find out how much money you have to pay back on your student loans. While student loans and other types of debt can be very helpful at times (mortgages for instance) do not make a habit of using debt to get what you want.

Debt is a form of slavery that will hold you captive until it has been repaid. If you make a habit of reaching for the credit card when life happens, this is a recipe for disaster and heartbreak down the road. If you currently have debt, create a plan to pay it off quickly.

9) Regularly pray for your financial purpose because God has something he wants you to do with His money.

As a college graduate, chances are that you will have a nice job in the near future and make decent money. Whether you make a modest amount of money or a boat load, God has a purpose for it. Pray over your finances and ask God what he would have you do with them.

The way we spend our money reflects from whom we know it comes from. Instead of spending without question, take a moment to reflect and ask the Lord what will glorify him. There are many ways in which we can practically honor God with our money.

10) More money will not solve your problems

Life is stressful, I get it. Now that you have graduated college and are entering into the “real world” there are a lot of new responsibilities you may not have thought about previously. Insurance, housing, car payments, and more are all yours – how marvelous.

More money will not magically make your life and your responsibilities easier to manage. In fact, earning more money does not guarantee you’ll become financially free. Studies have shown that many people who have million dollar salaries have a net worth of less than $500,000.

What really matters is how you use the money you do bring in. Don’t make the mistake of waiting for more money to solve your problems… Start learning good money management now even with a small amount of money.

11) “Looking the part” does not make you successful

I’m sure you’ve seen the guy with a brand new BMW, or the woman with million dollar pieces of jewelry. But I’ll share a secret with you, many of those people may have big salaries, but when it comes time to retire, they will be out of luck. Why? Because they spent the majority of their paychecks on fancy things rather than saving it for their futures.

Living a life of luxury will only bring so much happiness to your life. But at the end of the day, what would make you happier? All of your fancy cars, clothes, and things? Or the fact that you can comfortably retire and spend your time with your grandkids and not paying off piles of debt?

12) Take risks when it comes to employment

This is probably the best and safest time in your life to try things out and take risks when it comes to your job and employment. You are not tied down by all that life throws at you as you grow older. You most likely aren’t married yet, don’t own a home, and have a few years to go until you become a parent.

Try new things, take some risks, try out entrepreneurship, and enjoy the adventure. Don’t take your employment so seriously. If you wait to learn this lesson until your 40s, it may be a tad too late. You may be stuck in your job because you have a mortgage to pay and mouths to feed. And that passion project you dreamt of may not be as doable.

13) Just because someone said it worked for them does not mean it is right for you

There are tons of voices on the internet that promise great returns and ‘get rich quick’ schemes. Just because it worked for someone sles, doesn’t mean it is something you should try too. Remember, there is risk in everything you do.

While I implore you to not let risk keep you from taking chances, be careful and understand the kinds of risks you are willing to take. If it seems too good to be true, it very well could be.

14) Don’t let others define your goals

Mom and dad have your best interests in mind, however, make sure to set your own goals. Now that you are a college graduate, determine for yourself what it is that will be the most fulfilling. Invite God in and pray for his guidance.

15) Learn to budget

Contrary to common belief, budgeting is not as terrible as many make it out to be. Budgeting is simply creating a plan for how you will spend your money. Budgeting is talked about in the Bible and is recommended by almost every prominent money coach and advisor out there.

Don’t know how to budget yet? Don’t worry, it’s a lot easier than you may think. You can learn how to budget in just 5 quick steps.

16) Start tracking your money even if you don’t have much

If you’re not ready to start a budget, at least start tracking your money now. Sign up for a site like Mint, so you can automate the process. Tracking your money allows you to see how much you spend on everything on average, and is a great starting point when it comes to gaining control over your finances.

17) Build better money habits now

The earlier you can learn good money habits the better off you will be in the future. Here are 13 bad money habits I suggest you work on if you are serious about achieving financial freedom.

18) Never stop learning

If you stop learning, you will stop growing. I would encourage you to stay up to date and educate yourself on all things finances. The world is constantly changing and we should always be ready to change alongside it.

Ready to get your very own financial education? Schedule a free coaching call today so we can work together to build your very own personalized path to financial freedom.

What other money tips would you share with a recent college graduate?