Are you graduating from high school or college this year? Do you know someone who is? Since I started this blog a couple of months ago, I’ve thought a lot about the financial decisions I’ve made since my college graduation 9 years ago (time flies!). Some of my decisions I have been very happy with, others not so much. With this post I wanted to capture some of the positive and negative decisions I’ve made in my professional life with the hope that they might inspire you, or someone you know.
Don’t Worry About Getting the “Best” Job (At First)
As my college graduation day approached, there was a lot of buzz at my school about which company was currently on campus recruiting. Everyone had formed their opinion about which companies where the best to work for and which weren’t. I never got the best grades in school, but I knew that if I was just given the opportunity I would excel at any job that was being offered to members of my class. For this reason I didn’t focus on getting the best job when I graduated, I focused on getting one that would offer me the best experience. I try not to be overly superstitious, but as luck would have it, the company that I started with was bought by a company that wouldn’t even interview me in college because I didn’t have a high enough grade point average.
Don’t Buy a Brand New Car When You Get Your First “Real” Job
See my article on Leasing My Toyota 4Runner was Dumb. If I could do it over, I would have bought a less expensive used vehicle and focused on paying off the student loans and credit cards I accrued in college. You’ve made it this far without a serious paycheck, another 6 months or so of saving isn’t going to hurt you!
Start Saving for Retirement NOW!
One of the smartest financial moves that I ever made was enrolling in my company’s 401k program as soon as I was eligible. If your company does not offer a 401k or similar retirement plan, you’ll want to open either a ROTH or Traditional IRA (see my article Traditional vs. Roth IRA 2008). The longer you wait, the harder it will be to start having additional money withheld from your paycheck.
It’s OK to Rent!
Many college graduates are in a hurry to buy a house as they start out in their professional careers. Read my article: Don’t Buy A House Until You’re Ready.
Read Personal Finance Books
You owe it to yourself to ready at least one personal finance book a year. The three books that I recommend to anyone regardless of age are The Millionaire Next Door, Rich Dad Poor Dad, and The Total Money Makeover.
