Budgeting on a Full-Time Salary
Graduation is approaching soon for many students, myself included. I know many of the other interns have written on this subject this week, but it’s definitely worth writing about.
At Come Recommended, we’ve been working on the latest e-book in our series. This e-book focuses on personal finance in your 20’s — a relevant topic for graduates who will soon have a full-time job (in some cases, their first full-time job). Be on the lookout for The Numbers Game: Everything a 20-Something Should Know About Personal Finance.
There are a lot of financial decisions to be made when starting a full-time job, and graduates will probably be making a lot more money than they are used to. Some expenses to consider while budgeting:
- Housing
- Food
- Utilities
- Entertainment
- Transportation
- Student loans
- Credit card debt
- Also–remember that taxes and retirement programs will take a significant portion of your income each month. Don’t fall for the notion that your salary is what you will take home each year.
It’s depressing to think a lot of your income has to go toward these expenses, but it will make you much happier if you budget for these in the first place. After expenses are paid for, then you can treat yourself! I know after four years of being poor, I expect to get myself a few fun things with my first full-time job.
Do you have any tips for pending graduates about budgeting? What works for you?
Your exactly right about taxes!
When you land that first job and sign your offer letter, you really do feel on top of the world. Unfortunately, when you start receiving your paychecks you realize how much of that you never see.
A word of advice for college students that assume they will take on debt today, and just pay it off when you are out: It is a lot harder then you think!
Cheers!
Eric,
Thanks for the advice! It’s true — the debt adds up quickly, and the small payments (usually less than $100/month) don’t seem like they will make a dent. I know I was pretty surprised to see my total student loans after 4 years of school!
Katie