It’s almost that time of year when college graduates from across the Rio Grande Valley will walk across a stage for that degree that they’ve worked so hard to achieve. The next step in their lives is about to commence, and some college graduates will move away for their careers while others will continue with their education. One of the most overlooked parts of this new chapter, however, is financial stability. Practicing good financial habits will not only help recent graduates in their next phase of life, it’ll also help them permanently.
VFCU offers lower interest rates, fewer fees and better incentives for new members. Contact our credit union in Harlingen today to learn more!
Live Below (But Comfortably) Within Your Means
It may be easier said than done, but if you can maintain an economic mindset for a few years and save after beginning your career, you’ll be surprised at how much you can save! But how is this possible? It’s all about planning and budgeting based on your needs. Once you have an idea of which expenses you have per month, you can organize your finances into a realistic budget. Be sure to add monthly expenses such as car maintenance and emergencies, too.
Plan for Retirement
Since many college graduates are entering their first career, it’s easy to see why retirement might not be a priority for many of them. The truth is that it’s never too early to start building your retirement fund. Getting started now will only serve to ensure that once you’re ready to leave the workplace, living comfortably will be possible and well worth the effort.
Look into Individual Retirement Accounts, or IRAs, which allow you to save up money without having to worry about taxes. The great thing about them is that they’re incredibly easy to open and involve little hassle or paperwork. All you need is taxable income. Find more information about IRAs here.
Be Responsible with Credit Cards
Credit card debt can accumulate quickly. Opening up a credit card account is great for starting credit history, but make sure to keep overall balances low and maintain a monthly and stable payment that’s above the required minimum. By limiting purchases and maintaining payments, your credit score can help open doors for you, including lower interest rates for buying a car or home. To learn more about what affects credit scores, click here.
Start an Emergency Fund
Set up a separate bank account for emergencies that can cover three to six months of basic living expenses. It should also serve as backup for a layoff, medical bills or any other emergencies that might occur. Start a plan on how much you can set aside in a savings account.
Count on Us
Whether you’re starting a career or advancing your college education, Valley Federal Credit Union will be there every step of the way to help with your finances. As a family-oriented financial institution that’s 10,000 members strong, we offer services that banks don’t. In conjunction with so many amenities, we also offer lower interest rates, fewer fees and better incentives for new members. Contact our credit union in Harlingen today to get started!