avoiding post-grad lifestyle pitfalls

AVOIDING POST-COLLEGE

LIFESTYLE PITFALLS

A quick guide on what to be weary of in your post-grad

life.

L I O N E L B A R Z O N I I I

AVOIDING POST-GRAD PITFALLS01

CHANGES EVERYWHEREDo you remember what it was like making the transition from

high school to college? Meals were no longer cooked for you

around dinner time most every night. The food was probably

less healthy, tasted worse, and the money came out of your

pocket (either directly if you paid your own way, or indirectly

via loans). You were also, of course, paying for your room–and

it was probably smaller and more cramped than the one at

Mom & Dad’s place.


GETTING ACCLIMATED

But, over time, you got accustomed to it. And then, at the end of

your four (or five, or six…) years at college, things made a drastic

switch once again. Suddenly, you’ve found yourself with a more well-

paying job and a little bit more money on your hands. So what’s your

first course of action when you get that first paycheck at your new

office job? Buy a new car, an expensive new watch, or a few other

luxury items you can now afford.

Right?


LIFESTYLE INFLATION

Excessive lifestyle inflation comes almost naturally when you move

out of your parents house, get your first job, and live alone. But it

doesn’t have to happen at all if you know how to manage your

money, your expectations, and your lifestyle.

THE STEPS.

Spend Responsibly

Plan Ahead

Do Your Research

Be Reasonable


SPEND RESPONSIBLYSo you’ve got that first paycheck and, chances are it’s a fair bit higher

than anything you’ve received in the past. But just because you have a

job making $50,000 now doesn’t mean you can buy a $50,000 sports car

or put a huge down payment on a house.

Your parents aren’t around anymore, but that doesn’t mean you should

order Chinese or pizza every night–learn to cook and buy your groceries,

you’ll save a ton of money.

In addition, consider buying some items for your house or person used.

Rather than spending $500 on a new couch, get a hand me down for a

fraction of the cost. The same goes for most anything you need for a

new apartment.


PLAN AHEADWhat do you do with the aforementioned money left over from those

paychecks? That’s right–put it into your savings account. Saving a little

bit from each check and depositing it into your savings account will add

up over time–as long as you really, really force yourself to not touch it

(except in emergencies).

Budget out your spending–check what you’re spending on rent, on

utilities, on a car payment, student loans, and any other regular expenses

you may have. Then subtract that and look at what’s left over. Try to put

a large chunk of that into your savings every month, but be sure to leave

some for a night out every now and then!


THE MORE MONEY YOU SAVE NOW,

THE LESS YOU’LL FIND YOURSELF

NEEDING LATER.


KEY TAKEAWAY:

DO RESEARCHOne of the biggest money-sinks that people–especially young

people–seem to run into is making impulse buys. Yes, that $200 TV on

Amazon seems like a great deal–and it probably is, but do you really

need it? Take a day or two to think things over and determine how much

you actually need that TV before you make a large purchase. The same

goes for most any larger purchase, be it a mattress, a car, or which

apartment you’ll be renting. See if there are cheaper (but still suiting

your needs) options available.


BE REASONABLEIt’s one thing to attempt to live within your means, watch your spending

and exercise a degree of frugality when it comes to your finances. It’s

another thing to go overboard. No one wants to live paycheck to

paycheck in their 20s and 30s in an attempt to save up enough money to

be buried in a gold-plated casket when you’re 95. Be reasonable, track

your spending, plan ahead and do research, but don’t be afraid to spend

a little money so that you’re living comfortably when you can.


IF IT'S SOMETHING LIKE A CAR OR

MATTRESS, ERR ON THE SIDE OF

QUALITY OVER PRICE.


KEY TAKEAWAY:

I’m not miserly. I wouldn’t advocate for you to live life at its

most frugal, surviving only on rice and beans so you can save

for retirement. You should splurge sometimes. You’ll never get

your youth back, so enjoy it while you can. Take a trip every

now and then, take your spouse on a nice date or pay for the

version of Hulu that comes without ads, but make sure that

your spending habits and your earning habits balance out

when all is said and done.


CONCLUSION:

avoiding post-grad lifestyle pitfalls

Career