Finally, you're done with college. Congratulations on your graduation! One more hurdle down, a few more to go. Your next step on this exciting and adventurous journey to adulthood and independence is establishing a solid foundation to succeed financially. However, achieving this goal is no walk in the park.
You'll likely face challenges such as unrealistic expectations, high cost of living, low-paying jobs, and student debts. Fret not; PrimeWay Federal Credit Union will provide helpful tools and strategies to set you up for long-term financial freedom. Buckle up, new college graduate!
Savings Account
A savings account is a great way to start saving for your future. You can use it to save for a down payment on a house, vacay, a new car, retirement, or unforeseen emergencies. However, saving isn't easy; it requires a lot of discipline and effort. A savings account is your financial safety net.
When choosing a savings account, look for one with a high-interest rate and no fees to help your money grow over time. PrimeWay's savings account is easy to open, save, and access. With a minimum opening balance of $100, you'll be a step closer to financial freedom!
Checking Account
A checking account is essential for your daily financial management. It's an excellent place to keep your everyday spending money through free ATM withdrawals, online banking, mobile check deposit, and low processing fees. Make sure to track your expenses regularly to avoid overdrafts and unnecessary fees. The right checking account from the right institution can help you:
- Budget and track your spending
- Save money
- Build your credit history
- Avoid overdraft fees
- Access to financial services
To build good daily spending habits, consider PrimeWay's checking account.
Emergency Fund
Understandably, you might lack funds to purchase necessary or unexpected expenses such as car repairs, grocery shopping, rent, or medical bills. Worst-case scenario, you might lose your job unexpectedly or be affected by a natural disaster and require immediate supplies.
While a few hundred bucks can cover small expenses like parking tickets, a trip to your doctor, or a week's worth of groceries, it's short-term. Set aside a separate emergency fund to cater to unforeseen expenses.
Remember, there's no one-size-fits-all regarding your emergency fund. However, financial experts advise saving three to six months' worth of living expenses. Having an emergency fund provides peace of mind and prevents you from going into debt during challenging times.
Health Insurance
Healthcare costs can quickly become a financial burden. In fact, a West Health and Gallup survey reveals that nearly one-fifth of all Americans cannot afford necessary healthcare services. Worse still, 44% of American adults struggle to pay for healthcare.
Health insurance coverage – either through your employer, a parent's plan, or individual coverage – can protect you financially in case of an illness or injury. You won't have to worry about the high healthcare costs, and you'll have peace of mind knowing your health is covered. Health insurance coverage might also factor towards a successful job hunt since some employers require their employees to have health insurance.
Familiarize yourself with the insurance terms, coverage limits, and deductibles to make better decisions about your health and finances.
Side Hustle or Additional Income Streams
Do you know one of the world's most popular and beloved shoes was a side hustle? The famous Nike Air Jordans were Michael Jordan's side hustle, yet they've earned the seasoned athlete $1.7 billion from his deal with Nike since signing with the brand in 1984. The Air Jordan brand has been so successful that it accounts for nearly 10% of Nike's annual revenue!
A side hustle or additional income stream to supplement your primary income can help you reach your financial goals faster. It can also help you accelerate debt repayment, build your savings faster, or invest more for the future. You can dive into freelancing, app development, or starting a small business; you're spoilt for choice.
Low-Interest Credit Card
A credit card is a convenient way to pay bills or favorite Starbucks drinks. However, every time you use that card, it's like taking a short-term loan, billed monthly. Failure to clear this amount within the specified time – typically 21-25 days – accrues interest, which can be high.
A low-interest credit card typically has a lower Annual Percentage Rate (APR) than other credit cards. Such a low-interest credit card can help you make big purchases, transfer balances from higher-interest cards, and offer financial flexibility while helping you build your credit and manage unexpected expenses. Use it responsibly and pay your bill in full each month to avoid interest charges.
