Graduating from college is definitely one of those bittersweet moments that creeps up on you seemingly out of nowhere. How can four years fly by that quickly? And now we have to go into the real world? It can be quite scary, but there are ways to mitigate that feeling and get a better grasp on your personal situation. And, it all starts with money. As we know, not everyone is going to have the same job or starting salary after school and that’s completely okay. There are ways to figure out exactly what you can and cannot afford after school, as well how to maximize your savings.
Budgeting
If you haven’t budgeted before, you might want to consider starting soon. Whether it’s on an app, excel, or even in your head, we’re about to be fully in charge of our own income and expenses if you aren’t already. Very simply, there’s what’s called the 50/30/20 rule to also help figure out what you can afford. Fifty percent of your after-tax income should go towards your needs like food, rent, insurance; 30 percent towards your wants; and 20 percent should be allocated towards savings and debt payments. Hopefully your job will provide you with some benefits that should alleviate some of the costs of say insurance. In addition, figure out if and how much your family is going to be involved in your post grad expenses. It’s also important to note where you’re moving because the cost of living is different based on location, i.e. NYC versus Syracuse.
Savings
Since we’re still in college, it’s not too late to start saving for post-graduation. But really, it’s never too late. If you’re planning to move back home after graduation, you have a big opportunity to put more than the 20 percent of your income into your savings. Forecasting these expenses will also help you prepare how much you should save to afford moving out. One option is a revolving savings account where you figure out how much money to save each month to equal the anticipated cost of moving. It’s also great to begin paying off some of your student debt, or any other debt you have.. If you want to get even more ahead of the game (and this applies to people moving out as well), you can start contributing to your retirement plan, like creating a Traditional/Roth IRA and 401(k). Also, don’t forget about adding an emergency fund in addition to your savings account. As a reminder, an emergency fund is about three-six month’s worth of expenses for, you guessed it, an emergency.
Moving out?
Moving out expenses can look extremely different for everyone based on factors like having roommates or not, furnished vs. unfurnished spaces, actual cost of moving, and the list goes on. Having roommates can really help you get more for less and you can have more money to spend on wants and put into your savings. In fact, having just one roommate can help you save up to $1,000 a month. You can also consider thrifting furniture or asking family/friends for items you can have instead of buying everything brand new. If you have a job and salary waiting for you, you can divide your annual income by 40 to see how much you can pay in rent/utilities each month. Many companies will also provide signing bonuses. These can go towards more of your one-time moving expenses like furniture, U-Haul expenses and other moving fees.
It’s also totally fine and much more common than you may think to not have a job or know what you want to do after graduation. You don’t have to jump right into the corporate world if you don’t want to or if you don’t have the opportunity immediately after graduation. The possibilities are abundant for what job you can take right after school that provides you with a source of income. Opportunities will appear before you know it.
Syracuse has many resources to help you figure out your plans after college including the . You can make an appointment with a to discuss anything from budgeting to credit to managing your student loans, as well as other helpful resources for moving out. Feel free to make an appointment on Orange Success or email us at finlit@syr.edu.
Written by Stella Miller ’21, Whitman School of Management, Smart Money Coach