My oldest graduated college in May. As hard as it is to believe that I have a college graduate, I couldn’t be happier with how she embraced her opportunities as an undergrad to grow and learn. However, as we all know, her education has just begun. Here are some things new college graduates should keep in mind as they move onto the next stage of life.
It’s okay to screw up
Too often, life becomes a game of comparison – what do they have, what are they doing, where are they going? With college ending, it’s easy to assume everyone else has a set path to happiness that you’re somehow missing out on. It can be hard to answer the inevitable question: “So, what are you going to do now?” Although you’ve graduated, it’s not like you have only three days to make a decision or your degree will be revoked; you still have time to try different things. Even if the options don’t work out precisely as you’d hoped, each “mistake” gives you a chance to see what went wrong, adjust your approach, and try again with better knowledge and self-understanding. Don’t let the fear of making a nontraditional decision hold you back from trying something that might not seem the “right” thing to do.
Begin now to master your finances
If you’ve graduated and started a new job, congratulations! After the initial shock of how much taxes reduce your take-home pay, you will no doubt discover needs that you never knew you had. It’s okay to splurge a little here and there; you worked hard during college. But if I could give every young adult one piece of advice, it would be to learn to live – and be happy living – within your means.
Create a budget. After you’ve had a few months to live, received several months of bills, and have an idea of how many after-work socials you want to attend, take a look at your spending. It’s important to do this before it gets out of control. If you’re spending less than you’re making, you may not need to limit your spending; this early look at your expenditures will simply let you know where your money is going each month. However, if you’re already in the red, it’s time to decide where to cut your expenses or how to make more money.
Don’t go into/pay off debts. Many of you were able to graduate from college debt-free; others will need to start paying off student loans soon. Either way, don’t allow consumer debt to grow during the early part of your career. Having that perfect apartment would be great, but not if you’re up every night worrying about your perfectly large credit card bill. Make a goal to pay off your credit cards in full every month.
Minimize Fees. It seems like every industry is adding on fees these days. Even renting an apartment can come with hidden fees you only discover after you’ve paid the application fee. I saw one where they replace the HVAC filters quarterly but charge you for the convenience. Apartment fees may be in addition to fees you’re paying for your banking or investment accounts. While $5 here or there might not seem like much, it adds up over time. Even if you just save $5 per month, you’ve got a nice dinner saved up by the end of the year. Watch those fees!
Put something away for a rainy day. One goal with my kids was to provide a car that would get them through college and at least one year after. This would allow them time after graduation to save a little in case the car died before having to replace it. Whether it’s to buy a car or simply to be able to afford repairs, start a savings account and try to accumulate three months of living expenses. Not only will this give you the ability to respond to emergencies, but it will also provide a little freedom if you decide to change jobs.
Save for retirement. You currently have an advantage that diminishes every year: time. As financial planners have long noted, it’s time in the market, not timing the market that most often leads to success. If you can start putting away money for retirement now, you will increase your chances of having the retirement you dream of, perhaps even sooner than normal retirement age.
Success takes time
Very few people achieve their goals overnight. It takes hard work, dedication, and a long-term perspective to be successful even if you know exactly the career you want and the steps you need to take to achieve it. Your dream job probably won’t land in your lap right away. Be open to taking on different jobs and learning new skills. Try to remain focused and motivated when hit with setbacks as you work towards the best you.
Keep learning
Just because you’ve earned a degree doesn’t mean your education is over. Lifelong learning is essential to staying competitive and adapting to changes in the world around you, especially with how rapidly technology is evolving. You may discover new interests that provide you with a sense of purpose. Plus, the more you know, the more you’re able to make informed decisions, whether it’s about your job, your investments, or your life goals.
Embrace change
When I started investing, there were no exchange traded funds (ETFs), index funds were often seen as a way to achieve only average returns, and the idea of a robo-advisor hadn’t even made it into movies. Streaming services, cell phones, artificial intelligence, cryptocurrency? Just think about all the changes in the last couple of decades. It’s only going to speed up.
As you keep learning, as you read about new products and ways of doing things, implement those that improve your life and ignore those that don’t. You don’t have to embrace every change, but try not to reject the new simply because it’s new.
Build strong relationships
One challenge I had early on in my career was networking. My thought was I’m here to do a job, I’ll do it to the best of my ability. And while that focus served me well, it also limited my ability to grow in the organization. Perhaps more important, when I wasn’t making connections, it limited the number of people who saw my successes.
Today more than ever, success is a team effort. Once I decided to grow my network, I started within my department but also made a goal of meeting one person outside my department every couple of months. Sometimes this happened organically – someone would be called into a meeting with our team. Other times, I searched out people to connect with.
But it’s more than just a job requirement. Try to keep your friends from college close, yet make and grow friendships with those you’re meeting. And don’t forget family either. While you’re living your best life, check in with your parents or siblings regularly; they will be thrilled to hear from you.
Make the difference that’s right for you
I have heard commencement speakers, university presidents, and college graduates speak, and often it is centered around making a difference. Quite often, the differences these people speak of are big-picture changes. And if you want to create a new energy source and save the world from global warming, I’m not here to diminish those dreams.
But most people make a difference with a smaller footprint. Maybe as you become knowledgeable about your career, you choose to teach others. Or if you were an athlete you offer to coach kids in your area. Maybe it’s joining a home-building non-profit or helping pack lunches for the homeless.
If you decide that giving back is important, try to find where your talents and goals slip seamlessly into an organization’s needs. Not only will matching your interests to a nonprofit make you happier, but you will also have the chance to meet others with similar interests.
Just starting out can be scary, but wow – what an opportunity! Enjoy your life, but check in regularly to ensure you’re truly living the life you want.
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