If you or a student in your life is about to graduate or has recently graduated, we first want to say, “Congratulations!” This is a monumental accomplishment, and whether you’re crossing the finish line soon or have already made it across, this is an exciting new chapter.
For many, this achievement marks a first step into managing finances independently. This can bring unexpected challenges to new grads as they juggle student debt, investing, and saving.
With that in mind, we wanted to share a few key areas that new grads can focus on to help find their financial footing:
- Managing Debt: If you have student loans or other debt after graduation, you’re not alone. A good way to start managing your debt is to get everything out in the open. List your loans, credit cards, and any other balances so you know what you’re dealing with. While you do this, be sure to pay attention to interest rates and make a plan for how you’ll handle payments each month. When you’re organized, it’s easier to keep debt from getting out of control.
- Budgeting: Think of a budget as a way to keep your money working for you. Begin with your take-home pay, which is your pay after tax and any deductions, and make sure your essentials are covered; then you can see what’s left for everything else. This can look like putting money into “envelopes” or savings categories, or simply tracking the numbers in a spreadsheet. Tracking your spending, even just for a month, can be eye-opening and help you fully understand where your money is going.
- Saving: Savings give you a safety net. Life after graduation comes with surprises, and having even a small cushion makes moments like car breakdowns or surprise medical expenses easier to handle. Start by trying to save up an emergency fund that can cover several months’ worth of expenses, then branch out and start saving for other wants or needs in your life. Starting with small, consistent savings is the best way to go. The habit matters more than the amount at first.
- Investing: You don’t need a lot of money to get started with investing. The most important thing is to start early. Starting with small contributions to your own investment accounts or employer-sponsored accounts like 401(k)s can give your money more chances to grow.
No matter where you are in your journey — whether you’re days away from graduation or already navigating life after — the fact that you’re thinking about your financial future is a great sign. Small steps taken early can make a big difference down the road, and you don’t have to figure it all out at once. Partnering with a trusted financial advisor is a great first step in managing your finances. The Trademark team is here for you if you have any questions!
Thank you for reading!
This material is intended for informational purposes only and should not be construed as legal, accounting, tax, investment, or other professional advice. Trademark Capital’s investment strategies are built using quantitative, proprietary algorithms that are designed to identify and react to changing market conditions. However, investors should be aware that no investment strategy or risk management technique can guarantee returns or eliminate risk in any given market environment. As with all investments, Trademark Capital Management’s investment strategies are subject to risk and may lose money. The investment strategies presented are not appropriate for every investor and individual clients should review with their financial advisors the terms and conditions and risk involved with specific products or services. Due to our active risk management, our managed portfolios may underperform during bull markets. Past performance is no guarantee of future results.
