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Savings.
It’s hard to think about saving money when nothing is coming in!
However, as a placeholder in your budget, set aside 10% of your
anticipated income for emergencies as well as retirement savings.
Miscellaneous.
The miscellaneous category is the most difficult to budget
for, since many of the items in it are discretionary. Discretionary means that
they are more “wants” than “needs.” If necessary, these are the first
expenses to cut to make ends meet.
Anticipate your entry-level salary.
The Bureau of Labor Statistics provides
information on median and average salaries for almost any occupation in
the U.S. Sites like O*net, Careeronestop, and BLS.gov have plenty of data
for the location where you want to work. When looking at income data,
start by assuming you will earn on the low side. If you’re a new college
graduate without much field experience, you should expect to be at the
bottom when it comes to earnings.
As a soon-to-be college graduate, it is easy to get carried away. Face it – you
have been skimping for the last several years and putting your life on hold for the
promise of a good career. It’s easy to get carried away once you graduate and
reward yourself with things you can’t afford with the knowledge that “someday”
you will have the resources to pay it off. Living off credit is a dangerous practice
that you don’t want to start. That’s why getting used to living on a budget and
spending less than you earn right out of college is so important! As your income
increases, you can put that extra money towards paying off your debts, rather
than increasing your spending in other areas. Making good financial decisions
today will result in a less stressful, more rewarding, life.
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Section 18 – Planning For Your Future