Let’s be serious for a moment, saving money after college can be extremely difficult. With college tuition increasing at an astronomical rate and student loan debt threatening to topple over the economy, recent college graduates have to get creative in order to save money.
It has been speculated that the cost of college tuition has increased about 163 percent since the late ‘80s. This startling fact only seems worse when considering how saturated the prospective job market has become. Many college graduates are struggling to find work in their degree field and they’re accepting low-wage jobs instead.
However, there are a number of helpful approaches that college graduates can follow in order to save money after college. In no particular order, these five tips from Underground Elephant will help any recent college graduate to stock a little more money away and start knocking down those monumental student loans.
- One great tip is to search for well-paying jobs outside of the field of study graduated from. Even if it’s in an industry that requires some amount of undesirable work, finding a job that pays well right from the start can help in setting up a comfortable nest egg for the future. It can take a long time to find a job in any particular field of study, but college graduates will be able to save money by temporarily taking any well-paying job that they can find.
- Another great method for saving money after college is to cut back on unnecessary expenses. Things like streaming services and monthly subscriptions can reduce how much money a college graduate is able to save. Saving money means additionally cutting back on ordering food in and partying at the end of every week. It’s not that these things have to be given up forever, but simply cutting back on spending for a year or two can help any college graduate find financial footing.
- A third tip for saving money after college might be something that most college graduates are reluctant to consider. However difficult it may be, moving back in with family can be instrumental in saving money after college. Taking note of the facts that the cost of rent, groceries, and insurance have all gone up, moving back in with family may just seem like it’s not such a bad idea after all.
- The fourth tip is to establish an emergency fund. Being realistic means that occasionally monthly income will not add up to the cost of student loan repayments. Having an emergency fund set aside can turn a late notice on a repayment plan into one that has been taking care of. An emergency fund will also allow college graduates to avoid costly interest rates from accruing interest on overdue payments.
- The final method to help college graduates save money is to store any extra cash in a savings account. By looking into savings plans offered by local banks or credit unions, saving money can actually be turned into making money. Although many savings plans with compounding interest will take years to build up, starting sooner rather than later can sometimes mean a difference of thousands of dollars upon withdrawal.
It’s no secret that saving money after college is tough. Fortunately, there are thousands of college graduates who are in the same situation, and many of them are making strides every day. With these five tips, any college graduate will be able to save money and prepare for a brighter future in the long run.
Another money-saving opportunity for students is to apply for the Underground Elephant scholarship, which acknowledges safe drivers making a difference in their community and provides $1,000 to be used toward tuition.