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Expert offers financial planning tips for new college grads

The arrival of spring means that a new group of college graduates will soon be entering the workforce in earnest and facing challenges. economical choice It will affect their future.

While planning for retirement, saving for other goals like buying a home or raising children, dealing with student loans, and managing your credit, new graduate If you are new to financial management, you may need to proceed strategically or reorganize to achieve your financial goals.

Abbe Large, senior vice president at Lennox Advisors, told FOX Business, “Students who are really struggling financially because a lot of students graduate with debt and don’t come from wealthy families. There are a lot of them,” he said.

“I think very few people can start doing all these things right out of the gate,” she added. “Identifying short-term and long-term goals and keeping loan obligations in perspective are just part of what we’re talking about here. We have to think about financial responsibility.”

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Employed college graduates face a variety of financial decisions as they begin their careers. (image/image)

In an interview with FOX Business, Raj talked about the various financial challenges faced when graduating from college and finding a job.

Read her insights on investing for retirement, managing credit and debt, and saving for other needs and goals.

retirement savings

“After all, we shouldn’t delay.” retirement savings. For those with a base salary and a bonus, many people take the full bonus and save it. In fact, believe it or not, retirement is here sooner than you think, and starting saving sooner rather than later can be very powerful over time due to the effect of compound interest. I think it could have an impact. ”

“Contribute to something” workplace retirement account It’s great, especially if you have a match with an employer. Otherwise, you’ll be left with discretionary money on the table. If the employer is going to match you with something that you absolutely value…if you match with the employer, that’s a home run. ”

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By making the most of your employer’s retirement plan, you can ensure that no “free money” is left on the table.

“When it comes to saving for retirement, I think kids need to think in their minds that this is their monthly expense and that they are really just spending money on themselves. A lot of kids use their money for shopping and spending, but I think the mindset should be, “Let’s go buy stocks,” but instead, shopping for investmentIt’s a lot of fun.

“Systematic investing should be more diversified. The diversification part is key. Having exposure to different sectors and different managers is a plus…I think things like ETFs and mutual funds are great choices. ”

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Other savings

“Build an emergency fund: Life is unpredictable, and unplanned expenses can definitely make your debt even worse. Emergency cash reserves. Therefore, it is wise to focus on saving enough to cover at least three to six months’ worth of living expenses. ”

“Once you have control over your emergency fund and retirement savings, you can start to really focus on other long-term goals. Maybe you want to own a home one day, or maybe you want to own your own children. If you have other financial aspirations that are important to you, target your base first and expand from there. I think it’s important. ”

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university student

Focusing on paying off high-interest student loans first can help college graduates reduce their debt burden. (Brandon Bell/Getty Images/Getty Images)

Credit and debt management

“It pays to establish a strong credit history and leverage that credit information. credit card If you don’t use it wisely, you can end up getting into even worse debt and payment situations. It’s definitely important to look for a lucrative rewards program and not spend more than you can repay each month. ”

“I think paying off outstanding credit card debts, which are usually subject to high interest rates, should be a top priority as well… Consolidating outstanding credit card debts is one way to lower interest rates.”

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“If you choose to repay student loan debt More aggressively, and if it makes economic sense for their situation, they could start with the highest interest rate loan first and make only minimum payments on the lower rate loan. That’s one strategy. It also usually makes sense to focus on paying down private adjustable-rate loans before moving to federal or fixed-rate loans. ”

“Watch out for lifestyle frenzy, spend your money wisely, and understand where your money is being spent. Kids who earn more money tend to spend more money. It’s natural to want to enjoy increased discretionary income. But you have to earn it.” Make sure luxuries don’t unnecessarily become new necessities. ”

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