Graduating from college is a remarkable achievement, but it often coincides with the pressures of finding a new place to live, securing a first job and managing your first paycheck. Entering the workforce now means you must focus on maximizing your entry-level salary, potentially paying off student loans and planning for a secure financial future.
While these obligations may seem daunting, implementing basic financial habits into your daily routine can help ease the transition into life after college. By tracking expenses, staying on top of any student loan debt and planning out the initial stages of your career path, you can lay the groundwork for a financially secure post-graduation period.
You recently graduated: Now what?
Performing initial research on salary estimates for your major or career choice is crucial. Understanding the differences in pay between different industries, sectors and companies — as well as the cost of living for different cities — can help you structure your career path and identify positions you want to apply for.
From just $107.88 $24.99 for Kiplinger Personal Finance
Become a smarter, better informed investor. Subscribe from just $107.88 $24.99, plus get up to 4 Special Issues
Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Once you land a job, it’s a good idea to create a monthly budget based on your income. Tracking your expenses will not only provide you with a clear idea of where your money is going, but also help you create new habits — enabling you to focus on your priorities and say no to unnecessary spending.
However, creating a budget doesn’t mean cutting out all the fun stuff! Budgets are meant to help you identify items that aren’t essential to your daily needs, like how much you spend on eating out, luxury accessories and subscription services. Removing or cutting back on some of these items will allow for greater flexibility to focus on essential spending.
One required bill for many graduates is their monthly student loan payments. If you have student loan debt, prioritizing these payments is essential to protecting your credit score.
As such, these payments should be factored into your budget. A general rule of thumb is to devote no more than 10% of your monthly gross income to paying your student loan under a standard 10-year repayment plan. If you find yourself paying more than 10%, it might be time to review your budget to see where you can put that extra money to better use.
Planning your career path
While a larger salary can make it easier to balance your budget, recent graduates often place a heavy emphasis on their starting pay, mistakenly equating it to career success.
While a job provides you with money to pay the bills, pursuing a career means gaining experience, building your innate skills and talents, which will allow you to progress toward higher-paying positions with more responsibility and impact.
Seek a career path that aligns with your passions, lifestyle and long-term goals. Take remote work as an example. If you prefer to interact with colleagues face-to-face, then taking a position in which you’re not going into an office — even if it offers a higher salary — will not bring you personal fulfillment.
Additionally, keep in mind that you may move between companies and industries at various times in your career. This is why it’s important to take a long-term approach to planning, taking positions early on that enable you to learn and grow your skills and make yourself more marketable. While this could mean taking a pay cut early on, improving your skill set will pay dividends in the future.
Working with a financial professional
Sometimes, no matter how much effort we put into managing our finances, it’s not enough to cover all the bases in our financial journey. This can be particularly true when you are balancing a new salary, student loans and the responsibilities of rent, utilities and insurance that come with living on your own.
This is where a financial advisor can help you “level up” basic habits to strengthen your financial security and stability. For example, if you are having trouble making loan repayments, an advisor can help you understand your loan obligations in greater detail and help you choose a repayment plan that makes sense for your situation.
A financial advisor’s greatest impact, however, lies in long-term planning. By working together to understand where you are today — and where you would like to be — an advisor can craft a comprehensive financial plan that considers your unique needs and circumstances, as well as your vision for the future.
With an entry-level starting salary, it usually takes time to achieve financial independence. But that doesn’t mean you can’t begin to save for longer-term goals, such as retirement, homeownership, a new car or continuing education. Collaborating with a financial advisor can help you budget for these items and take advantage of your employer’s retirement plan, which often includes matching contributions to your pretax salary deferrals.
Whether you work with an advisor or on your own, it’s important to set professional and financial goals and plan the steps you should take to realize them. The post-graduation period is filled with new responsibilities and important decisions, and financial missteps early in your career can lead to neglected debt payments, a damaged credit score and overall financial stress. However, if you stay committed to your financial plan, maintain responsible spending habits and seek a position that aligns with your passions and skills, you can lay the foundation for a rewarding career and a secure financial future.
Related Content
- New Grads: What to Know Before Your First Real Job
- New Graduates’ Guide to Paying Off Student Loans
- 11 Smart Ways Recent Grads Can Use Their Monetary Gifts
- Lost Your Way Financially? How to Get Back on Track
- What Are You Willing to Do for Cheaper Car Insurance?
-
Stocks Slip to Start Fed Week: Stock Market TodayWhile a rate cut is widely expected this week, uncertainty is building around the Fed's future plans for monetary policy.
-
December Fed Meeting: Live Updates and CommentaryThe December Fed meeting is one of the last key economic events of 2025, with Wall Street closely watching what Chair Powell & Co. will do about interest rates.
-
This Is Why Investors Shouldn't Romanticize BitcoinInvestors should treat bitcoin as the high-risk asset it is. A look at the data indicates a small portfolio allocation for most investors would be the safest.
-
Stocks Slip to Start Fed Week: Stock Market Today
While a rate cut is widely expected this week, uncertainty is building around the Fed's future plans for monetary policy.
-
December Fed Meeting: Live Updates and Commentary
The December Fed meeting is one of the last key economic events of 2025, with Wall Street closely watching what Chair Powell & Co. will do about interest rates.
-
Why Investors Shouldn't Romanticize Bitcoin, From a Financial Planner
Investors should treat bitcoin as the high-risk asset it is. A look at the data indicates a small portfolio allocation for most investors would be the safest.
-
I'm a Financial Pro Focused on Federal Benefits: These Are the 2 Questions I Answer a LotMany federal employees ask about rolling a TSP into an IRA and parsing options for survivor benefits, both especially critical topics.
-
Private Credit Can Be a Resilient Income Strategy for a Volatile Market: A Guide for Financial AdvisersAdvisers are increasingly turning to private credit such as asset-based and real estate lending for elevated yields and protection backed by tangible assets.
-
Smart Money Moves Savers Should Make in 2026These steps will get you on the road to achieving your 2026 savings goals.
-
5 RMD Mistakes That Could Cost You Big-Time: Even Seasoned Retirees Slip UpThe five biggest RMD mistakes retirees make show that tax-smart retirement planning should start well before you hit the age your first RMD is due.
-
I'm a Wealth Adviser: My 4 Guiding Principles Could Help You Plan for Retirement Whether You Have $10,000 or $10 MillionRegardless of your net worth, you deserve a detailed retirement plan backed by a solid understanding of your finances.
