Wondering what you could do with your college job money to set you up for a successful future? Your paycheck could definitely put you ahead of things when it comes time to graduate. All you have to do is start budgeting.
Budgeting is never easy. It usually involves making some serious sacrifices. Whether that’s staying home while your friends go out to eat or waiting until a movie comes out on Netflix, you usually have to give things up to plan for the future.
There’s no better time to do it than when you’re in college. Saving a little bit for the future will take less stress off of you when you’re out there in the real world. When all those adult responsibilities hit, being ahead of the game can really help.
If you’re currently unsure how to take your paycheck and turn it into a successful nest egg for the future, we’ve got some great advice.
Stash It Away for Emergencies
You never know what could happen in the future. Your car could break down, you might end up with a costly medical bill, or have to make a last-minute trip home. There are endless possibilities when it comes to potential money bombs.
The best thing you can do to plan for these unforeseen and costly expenses is to save for them. Use a little bit of each paycheck to build up an emergency fund that will help you out should something come up. Even just $10 from every paycheck will eventually add up to good savings. If you can add more, do it!
Chances are you’re one of millions of students who took out loans for school, you don’t want to rack up more debt in the event of an emergency. If an emergency never comes (lucky you!), you still have great savings behind you if you ever want to pull extra money from somewhere.
Save for after college
Yup, we’re suggesting another savings account. Why? Because if you plan to go off on your own after college, there’s a long list of expenses that you’ll need to think about. Here are just a few costs that come with an independent life after college:
- Moving expenses (Moving truck, boxes, tape, packing materials, etc.)
- Security deposit
- First (and sometimes last) months rent
- Electricity Deposit (for some states)
- Setting up cable and internet
- Buying household supplies
These are just a few of the first major expenses you’ll need to take care of. So, setting aside some money to get you ahead of the game will put you in a better place. If you can save for a few months of rent, you’ll stress less about trying to get on your feet with a new job and adjusting to your new responsibilities.
Pay off your student loans
That’s right, you can start paying off your student loans even before you graduate. In fact, doing so might put you in a better place than your peers who wait for their repayment plans to kick in.
Since your loans accrue interest even when you’re not paying them, paying early takes care of that interest ahead of time. Plus, paying earlier than scheduled could significantly reduce the amount you’ll have to pay after you’ve graduated and have more responsibilities on your plate.
College is a great time to get ahead so that you’re not stressed about your financial situation come graduation. If you feel like you’re making enough money to set a good portion aside, you’ll be doing yourself a favor in the future.
These are just three things you can do to maximize your college job money and graduate feeling good about stepping into the future.