Hi Money Minder,
I just graduated and now I’m staring down the barrel of $21k in federal student loans. Yikes! I took out a mix of subsidized and unsubsidized loans, and my grace period is almost up. Time to start paying up in November.
I didn’t do much financial planning in college because, well, studying was kind of a big deal. Now I’m struggling to find a job in my rural area, so I might have to settle for something local for the time being.
The good news is, I’m not drowning in expenses right now. No car, no bills for phone or internet, and no credit card (even though I probably should get one). Plus, my dad is letting me crash at home for free while I figure things out.
We’re preparing to sell our family home, which means a nice chunk of change coming my way from the profits. We’re moving to an apartment above our family’s store soon.
I could use some advice on how to handle all of this. Finding a job is my main focus, but I also want to tackle my loans, start saving for retirement, maybe dip my toes into investing. Any tips?
Thanks a bunch!
- College Grad Extraordinaire
Response from THE MONEY MINDER:
Hello There,
Congratulations on graduating! It sounds like you are facing a challenging financial situation right now, but you are taking steps in the right direction by seeking advice and planning ahead.
First and foremost, focusing on finding a job is crucial. While it can be tough, especially in a rural area, considering a temporary local job to make ends meet in the short term is a practical step. Keep searching for opportunities, network, and consider expanding your job search radius if feasible.
Given your current circumstances and the fact that you are staying rent-free at home, take advantage of this time to create a financial plan. Start by understanding your student loans and exploring repayment options. Contact your loan servicer to discuss repayment plans that fit your current financial situation.
Since you don’t have many expenses at the moment, it’s a good time to start building your savings. Utilize any funds you receive from the sale of your family home wisely. Consider creating an emergency fund to cover unexpected expenses and gradually start saving for retirement. Additionally, once you secure a job, look into setting up a budget to manage your income effectively.
As for investing, educate yourself on the basics and consider starting with low-risk options like a 401(k) or an IRA. It’s important to establish good financial habits early on to secure your financial future.
Remember, take things one step at a time, remain proactive in your job search, and make informed financial decisions. You have a supportive environment that can guide you through this phase. Keep a positive attitude and stay focused on your goals. Best of luck navigating your current situation!
Farewell from THE MONEY MINDER.
Leave feedback about this