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At one time, a young graduates’ intention upon leaving school was to take a break. That concept has changed dramatically over the last few years, and there are many reasons why. At least it has for me as a recent graduate as it has for many of my fellow students.
No Longer Feasible To Take A Break
One of the main reasons grads can no longer look forward to taking a break is that they owe just too much debt. The majority of these young people have enormous student loans, as well as general expenses to deal with. Whilst they can get help with the latter if they use a broker for things like their car insurance, the former is too important to leave alone. Their parents were just not in a position to pay for their schooling. The cost of education is just out of reach for most parents.
Competition
The job market can be tough across all sectors. Young grads need to start hitting the payment for that career job when they are out of school. If they don’t, their competition will and finding the best job is not easy.
Different Expectations
Today’s grads are more goal-orientated when it comes to their financial future. There are different reasons for this. Some have seen their parents struggle for many years financially. These grads are intent on not ending up in this situation. Others have the intention of retiring early. The only way they can do this is to be financially secure very early in their working years. Others have aspirations of owning their own business. Then others want to own a house before they are even ready to settle down and raise a family. All of these reasons and more have caused most grads today to create different expectations.
My Approach
My approach to obtaining financial security in my younger years is not unique. Many are focusing on the priorities I have set for myself.
Priority One
With all the health risks present today and the cost of health care. Nobody at any age can afford to be sick. My priority was to get proper medical coverage. Some of my fellow grads took the risk of not doing this. They are counting on their youth to carry them through any health problems. For them, their priority was to clear their student loans.
Priority Two
Some may think that my priority should have been to find the job of my dreams. Although this is one of my priorities, it was not my first. I developed a budget and determined how much money I had to make to implement this. The budget focused on the immediate necessities, like rent, food, car insurance, and so on. This was a guideline for when it came to looking for a job that would allow me to follow this budget.
Priority Three
My budget was based on my priorities, with one of these being to get out of debt as quickly as possible. My budget reflected this. It wasn’t based on having a great apartment or a new car.
Priority Four
For this priority, it was all about really understanding what I needed rather than what I wanted. This covered a few living categories. Such as what did I need for living accommodations rather than what I wanted. For me, I wanted an apartment that was big enough for me. One bedroom was sufficient. I wanted a good cooking area. One way for me to save money was to eat in, and not be frivolous with ordering out. I wanted a balcony, so I had immediate access to fresh air. Which meant I wasn’t as tempted to go out all the time.
Priority Five
Another priority was to find cheap entertainment. I focused on participating in activities that didn’t cost a lot. I took up a hobby that kept me busy but wasn’t expensive.
This is just the beginning of my journey as a recent grad. I am looking forward to phase two, which will be implemented upon completing this one.
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