If you are a new college graduate who recently started your first job, it’s important to implement an aggressive money management strategy now, even if your income is small. Firstly, it’s important not to fall into debt this early in your career. Secondly, the financial habits you form now will likely last throughout your life. Lastly, any money that you are able to invest or put in savings today will have decades to grow. Here are a few important tips:


Make a budget now and stick to it. Alexa von Tobel, founder of financial website Learnvest, recommends following the 50/20/30 method. “Fifty percent of your take-home pay (your paycheck after taxes) goes toward your essentials (rent, utilities, groceries, and transportation),” von Tobel tells Daily Finance. “Twenty percent goes to the future (paying down debt, saving for emergencies and retirement), and the rest — a whole 30 percent — goes to your lifestyle (eating out, vacations, shopping, etc.).”

What is the opportunity for promotion:

The first thing you should look at if your going to work for someone else is job stability and promotion opportunity. We all have to start somewhere, but then have a goal for upward movement.  Some thing s you may want to ask. Ask current employees how long it took them to move up in the company. Ask the management what the turnover rate is? Do they promote form within or hire form outside the company? These are things every new job seeker should want to know of their new employer.

Commit to saving: 

Start saving now! According to The Wall Street Journal, if you save $5,000 a year with 6 percent compound interest, starting at age 25, you’ll be a millionaire by the time you’re 70.

Look at your benefits:

Exam your benefits. Look at everything from the 401k offered, health insurance and life insurance offered by your employer.  If your company matches on their retirement plan then you better contribute up the amount matched. It’s free money and you never walk way from free money.

Look the health insurance plan offered. What are deductibles, out of pocket cost and networks offered?  Is it a PPO or HMO plan? If you are married compare the plan to your wife’s work plan to see which one offers the best options and price.  Don’t just accept what is offered make sure to know what you are buying!

It might seem strange to talk about life insurance when you are still so young. However, many 20-somethings have others who rely on them, whether its their significant other, siblings or parents. It’s also important to ensure that if you were to unexpectedly pass away, your family would not be burdened with your debts and the costs of your funeral. If you would like to learn more about life insurance for young adults, you can get a quote from Local Life Agents.