Briefly:
- You’ve graduated from college—congratulations! Now what?
- Talking about money isn’t always easy but is often necessary.
- Forming healthy financial habits early can help set you up for long-term success
STUDENT LOANS
Having a plan for how you’ll pay back any loan is important, and student loans are no different. The sooner you pay them off, the less interest you’ll pay overtime. One way to reduce the principal and the time you’ll spend paying off the loan is to pay more each month. Paying more on the principal now, means paying less overall. And if you have more than one loan, consider paying down the loans with the highest interest rates first to decrease the overall interest you’ll pay.
INVESTING TOWARDS RETIREMENT AND MORE
Although retirement may seem light years away right now, it’s never too early to start planning for it. Be sure to participate in your employer’s retirement plan if one is offered. If you don’t have a retirement plan benefit, you still have options, such as registering for a Tier 3 SSNIT voluntary scheme. Invest, or work toward investing, 10–15% of your gross (pre-tax) annual income, including any employer contributions (which means they’ll match a certain percentage of the money you invest—it’s like free money!). It’s also important to invest for emergencies like an unexpected car repair or medical bill. You’ll want to have your emergency fund in an easily accessible account like the CAL Advantage fund.
Congratulations on making it to this next step in setting yourself up for success. Establishing healthy financial habits may feel overwhelming at first, but it’s worth it in the long run. Your future self will thank you!
