How Can I Set Myself Up for Financial Success After Graduation with Juan & Kadri
Graduating college is an exciting albeit scary time as you officially step into adulthood. There is so much we don’t know when we graduate, not just about finances, but about ourselves and what we actually want in our life. This is especially true for folks who graduate in their early 20s.
On this episode of Financially Naked: Stories from The Financial Gym, our hosts are Kadri and Juan, two Certified Financial Trainers and they are here to talk about advice for new graduates.
They have both walked the path of college graduation, each with their own set of challenges and triumphs and worked with many clients in similar situations.
Today, they’re here to share personal stories and valuable advice to help new grads navigate post-graduation life, get financially healthy, and set up for long-term financial success.
Podcast Notes
How do you develop a healthy money mindset?
Building a healthy money mindset is essential for long-term financial success.
All of the skills that come with personal finance are important only once you work on your money mindset. How you feel about money isn’t directly related to the actual number in your bank account.
Even if you know what you SHOULD be doing, it can be challenging to make those things happen. Sometimes it takes many years of work and learning the same lessons over and over.
At The Gym, we say, ‘What are you working for?’ It’s about Understanding your values and what is important to you. This will help you lead your financial decision-making in a way that brings you joy.
Financial literacy is like any language. You can learn about money and improve your financial situation through learning, effort, and persistence. Challenges and setbacks are learning opportunities that are all part of the journey.
Surround yourself with positive influences: Engage with people with a healthy money mindset who can provide support and encouragement. Join financial communities or find mentors to guide you on your financial journey.
Practice self-compassion. Be kind to yourself throughout your financial journey. Avoid harsh self-judgment and understand that financial success takes time and effort. Treat yourself with the compassion you would offer a friend facing similar challenges.
Steps for New Graduates
Reflect and set goals. Define short-term and long-term financial goals based on what you truly want. Regularly reflect and adjust these goals to stay motivated.
Start with a budget or cash management plan. Spend some time tracking your income and expenses. This will help you understand where your money is going and create a baseline financial plan.
Live within your means. Depending on your situation, overspending or even accumulating debt can be tempting. Get clear about the difference between your wants and needs, and practice mindful spending by staying aligned with the goals you’ve set for yourself.
Focus on saving. Aim to save a portion of your income, even if it’s a small amount starting out. It’s about building good habits early. Start with an emergency fund, and develop your other goals from there.
If you have student loans, tackle them strategically. Take the time to analyze your loans and different repayment options. See if you qualify for any income-based repayment plans or if debt relief options can apply to your industry.
Start investing as soon as you can. The magic of investing lies in compound interest. The earlier you can start, the better, even if it’s just a little bit each month. Consistent contributions to retirement accounts or other investment vehicles can lead to significant growth.
Be mindful of credit. Establish a good credit history by paying bills on time and keeping credit card balances low. Responsible credit usage can help you qualify for loans, secure favorable interest rates, and improve your overall financial health.
Learn from mistakes. Understand that making financial mistakes is a part of the learning process. Instead of dwelling on past errors, view them as valuable lessons that can inform your future decisions.
Celebrate your wins. Acknowledge and celebrate your financial achievements, no matter how small they may seem. Recognizing your progress will reinforce positive behaviors and motivate you to continue making wise financial choices.
If you are in college or a new graduate and want to work with a Certified Financial Trainer to help navigate your finances, schedule a free warm-up call today! If you have any ideas or questions for the show, send an email to trainerpodcast@fingyms.com.