If you're finishing or getting close to finishing up college and getting ready for your next stage in life, you're probably already getting serious about money-saving strategies. Maybe you're looking to move out of mom and dad's house, or perhaps you're already living on your own and are trying to make sure the bills get paid. No matter where you are at the moment, you probably have much better plans for the future such as buying a house, owning life insurance, having a family you can take on vacations, and ultimately retirement. If you're ready to get started building a nest egg for your future but aren't sure what to prioritize, here's a few tips for doing so.
Refinance Student Loans
There will usually be some kind of debt you'll face for your adult years, but the one that often follows you immediately out of college is your student loan debt. Unless you qualify for certain forgiveness, forbearance, or other provisions in your student loan, you'll find the monthly payments often eating into your budget. Thankfully, many private student loan lenders allow you to refinance costly loans with lower interest rates and offer lower monthly payments that are within the reach of many Americans. It's worth looking into an online private lender's loan refinance program, like the ones available at Earnest.com, if your student loan payments are becoming too burdensome.
Start Looking at Extra Income Gigs
With all the technology we have today and the gig opportunities it provides, there's really no reason you can't take advantage of it and make a few extra bucks outside your normal job. If you have a vehicle that's pretty reliable, you might want to make money driving for Uber or GrubHub. There are also certain jobs like writing, app testing, coding and others that you can do part-time and make a little extra money doing. But the bottom line is you don't have to just limit your income to only 9 to 5 work.
Set Aside Cash for An Emergency
Even though as a young person you may not have a lot of cash that can be just set aside for emergency uses, $10 or $20 each paycheck can do a lot more for your savings than you might think. $1,000 set aside may help cover a car repair not covered by insurance, or possibly a medical cost you realize you have to pay for out of pocket. In the long run, it's good to have cash reserves ready to cover emergencies instead of using credit cards or loans to do so.
Don't Forget About An IRA
Many young people these days are certainly aware of long-term investments and are ready to commit to them through vehicles like their 401k, but they may not be aware of opening an IRA. As opposed to a 401k which can be subject to taxes when you begin taking distributions from it, an IRA will not be taxed provided it's followed the guidelines.
Contrary to popular belief, there are actually many ways to open an IRA without needing to begin with hundreds or thousands of dollars. Some newer investment platforms have little to no maintenance or broker fees if you know where to look, and all it takes is just a few investments to get started. All you need to do is just get started now to see that nest egg grow over the years.
