College Graduates Need to Adjust to “Real World” Financial Problems and Avoid Debt
By Brenner Spiller & Archer, LLP | May 31, 2016
A lot of people in New Jersey, New York, Pennsylvania and everywhere else in the U.S. have been beset by serious debt problems in the past few years. The problem is particularly bad for young people who recently graduated from college and are now entering “the real world” for the first time.
Unfortunately, far too many college graduates find that they are completely unprepared to handle their finances and deal with higher expenses and monthly bill requirements.
When a person leaves college and begins to earn a living, they also often end up learning firsthand about the obligations, financial and otherwise, that come with adulthood. These obligations may include high rent on an apartment or house (as opposed to living in a dorm), car payments and maintenance costs, and strict job requirements (such as performing work duties and wearing proper attire in the workplace).
One of the things that can get a college graduate into a lot of trouble is not having a good understanding of how to properly manage their finances. Far too many young people end up crippled by debt – on top of their student loans – because they didn’t realize the importance of sound financial strategies.
If you, your son or your daughter recently graduated from university, here is one crucial “money lesson” that will come in handy: Figure out how much money you need to cover expenses each month and then stick to a budget.
Although it can be tempting to spend those first few paychecks on new electronics or upgrading to a fancy new car (with monthly payments, of course), don’t fall into the trap of thinking that your current bills are the only expenses that might arise.
Devise a monthly budget and make sure you always fall in line with this budget. If possible, try to do a little better than your budget and live below your means for a while. This will provide you with the financial flexibility you need in the event that an emergency strikes. Whether it’s a health scare or the sudden loss of your job, you must be prepared for anything.
For more information, view thesimpledollar.com article, “Six Things Every College Graduate Needs to Know about Money.”
If you are struggling with debt and need a little help managing your finances, you should speak with a qualified bankruptcy and debt management attorney immediately. The experienced, knowledgeable bankruptcy lawyers at Brenner Spiller & Archer, LLP can help you. Contact us today to schedule a free consultation.