Why a Recent College Graduate Should Save Money

Now that college is over, are you ready to start saving money for once? This is your time to start beefing up your bank account!

If you were able to find a job after college, you’re ahead of the game. Congratulations. You’re making money now. You can finally afford to eat well and enjoy life.

Recent college graduates often underestimate the importance of saving money. Now that you’re done with college and making money, are you going to try to keep more of it?

I wanted to discuss why you should try to save some money now that you’re making money. Why should new college graduates start saving money?

Life after college is pretty sweet.

No matter your situation is right now, it will become a lot more difficult in the future. Once you buy your own property or get married, life will be so expensive that even your lucrative salary will seem like it’s not enough. Now is your chance to start saving some money. Life after college is a lot better easier than when you get married and have to raise a family.

To have money for when it all hits the fan.

The emergency fund is an amazing thing. Money for when things hit the fan.

No matter how untouchable you feel in your early 20s, every human being needs to have an emergency fund because life doesn’t always work out.

I’m not going to give any examples because emergencies come in all shapes and sizes. Once you experience one you will realize the importance of having extra money available.

An emergency fund should typically contain 5-10% of your yearly salary. This fun should not be touched unless it is an absolute emergency, going to Cancun for Spring Break is unfortunately not an emergency.

Purchase property/have money for rent.

After you look at the debate for buying a home compared to renting, you’re going to realize that you need some cash saved up for both options. You don’t want to live with your parents forever.

Set you on the right path.

If you don’t get into the habit of saving in your early 20s then you’ll get a cold reality check when the day comes where you realize you have to save or you will not make it.

For many people this day happens when a child is born or after they get married and realize how expensive life has become.

Have more money for what you truly enjoy.

What I mean by this is that the less money you spend on clothing or random dinners out at a fancy restaurant, the more money you’ll have to spend on the things that truly make you happy.

Everyone has a different perspective on what they enjoy, whether it is travelling, visiting family, or educating yourself. The point is by limiting you’re spending on useless purchases, you’ll have more money to enjoy your life.

Life after college is an exciting time. All I’m suggesting is that you try to save some of the money that you make. I don’t want you to miss out on life has to offer only because you blew your checks on nonsense.

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