Not Saving Money
When you're just starting out with your first real job after graduation, it can seem that money needs to go everywhere: towards your work wardrobe, your car or other mode of transportation, bills, rent, and food. However, you should still try to save at least a portion of the money that you make. If you have a savings account, start using it. You don't have to add a lot. Every little bit counts.
Not Having a Budget
It's important for you to have financial goals for yourself, such as being able to afford a house, a car, and maybe a wedding and a family. In order to afford any of this, you need to limit your spending. Each week or each month, set a budget and try within your best abilities to stick to that number. You can go a little over on occasion, but it's better to live within or below your means.
Not Tracking Spending
Of course, in order to have an effective budget, you need to track your spending. If you often wonder where your money goes, tracking your spending can answer this question. Watch everything, from your morning cup of coffee and restaurant meals to that new video game or handbag that you just bought. If you overspend one month, see where you can cut back to get back on track.
Not Having an Emergency Fund
Now when you receive your paycheck, part will go towards savings and part will go towards retirement. Yet more money needs to go towards an emergency fund. This money is important in case something unexpected happens. You could experience an unexpected medical emergency or a similar sticky situation. For those scenarios, it's best to have some spare change lying around.
Holding off on Paying Student Loans
It's tough paying off student loans, especially if you don't find a job right after graduation. Once you begin working though, you have to begin paying student loan debt. You can typically do this in monthly increments. You can also possibly push paying the loans back until you're more financially settled, but you can't do this indefinitely.
Not Putting Money Towards Retirement
As mentioned above, you have to start thinking about retirement, even straight out of college. Your job may offer you a 401(k )or other type of retirement planning option. This will take money out of your weekly paycheck, but you're saving for your future, and you're never too young to do that.
Not Getting Insurance
Insurance protects the people and things you value most. If you buy a new car or rent a new apartment, make sure to insure it. You should also make sure that you receive health insurance at work in the case of any health emergencies. You don't want to have to pay money out of pocket later because you didn't think ahead now.
Paying Exclusively with Credit Cards
Credit cards let you pay for whatever you want, even if you don't have the money to pay for it. That's a dangerous road to go down. While you certainly don't have to pay in cash every time that you buy lunch or go shopping, don't plunk down the plastic so easily. You could also consider a debit card. This only lets you spend what's in your bank account.
Spending More Than You Can Afford
You may feel that you have a million standards to live up to: those set by your parents, your classmates, your friends, your coworkers, society, and yourself. However, spending more than you can afford will not help you. Don't buy big ticket items just to impress others or make yourself feel better. Live within your means.
Going Into Debt
Overusing your credit card and spending more than you can afford both can easily lead to debt. Adding credit card debt on top of student loan debt could destroy your financials. You could spend years digging yourself out of a debt hole only to resurface still behind the curve. Carefully manage your money and your spending to avoid debt.
