Introduction to being broke: Budgeting tips for the Soon-to-be graduate in 2010

Posted by MoneyThinker in budget, credit cards, debt, featured, general, savings | 1 comment

I walked across the stage this past May to earn my Master’s Degree.  It was an emotional day for a variety of reasons, but there was one glaring reason that my stress level was through the roof: This meant I had to go out into the real world now!

Needless to say, our economy still isn’t the best. It’s not as bad as it was, but it’s still not easy to get a job in your field. So, you’re reading this because you’re wondering how to best budget for after graduation. Right?

I’ll admit, I really messed up after my bachelor’s degree. I ended up in a boatload of debt and killed my credit score. I had to ask friends and family to help me out, and this resulted in me going back for my Master’s Degree because I just needed to take time in order to straighten out my life financially.

So, what did I do differently that helped me not struggle so much during this time of unemployment?

First, I made sure I had no debt to start with. Obviously, I cannot help the mass amounts of loans I have, but credit card debt was the bane of my existence. I was constantly paying the minimum payment, not really getting anywhere, then having to use the card, which pulled me further in debt. It was a deadly cycle.

Second, I saved money. I worked on campus in both undergrad and graduate school. I never saved in undergrad, and ended up where I was. I attempted to save in graduate school, and now I’m much better off than I was.

Third, I budgeted, and stuck to that budget. This is hard, I’m not going to try and hide that. It’s really a good idea to have it in front of you, and to mark off things as they are done. Seeing things on paper always helps keep you more accountable.

And lastly, I learned to ask good questions. Do I really need this? Why do I think I need this? Is this an immediate need? This has saved me hundreds of dollars in a time where the economy is shaky and my finances need to come first. Hesitating has saved me from making crazy purchases.

This week, I will talk about each of these in more detail, but I wanted to give you a sneak peak so you know what to be looking for. Until then, save smart!

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