Here’s how you can afford some of those extras: Negotiate your salary. Here’s an article from the Washington Post to get you started. Google “negotiating salary” for hordes more. Do some research, and find out what a job pays for someone with your skills. Don’t take a job you know you will hate, just because it pays more. It will encourage you to spend more, which will keep you on track for a career you hate.
Lesson number 3: You Need a Budget
Your expenses need to be in-line with your income. For the sake of your wallet and your health, you shouldn’t eat out every night. You probably won’t be able to afford living arrangements as nice as the house you grew up in, right off the bat. And you need to consider a reliable, probably even used, car to start.
In addition to food, housing, and transportation, you will need insurance. Health insurance. Car insurance. Possibly even life insurance (to pay off jointly-owned debt, for example). Shop around, and compare prices.
Your employer will most likely not be checking for brand names on your clothing. And the size of your television and stereo should not exceed a reasonable portion of your living space.
Regarding investing: fund your retirement account first–the money you put in now will make twice as much as the money you put in ten years from now. Don’t invest all your retirement savings in your first employer’s success. And anyone who advertises their investment in late-night infomercials isn’t making money off that investment, they’re making it off their investors.
Lesson number 4: You Need to Take Care of Yourself
You need to maintain your health. Remember that broken bones cost money now. Don’t drive stupid. Don’t live too hard. Get to know your doctor when you’re healthy (that is, get a physical), so you will know who to call when you’re sick.
Protect your reputation. Remember that Facebook lesson? And don’t mix money with friendship. That means don’t cosign on loans with your buddies or boyfriends or whomever. It’s a good way to ruin a friendship and a great way to ruin your credit history.
Okay. Those are the basics. I know on the surface it seems like a bunch of don’ts. But I also remember that when I was a kid, I was always arguing with my parents for control of my own life. They may not know it yet, but your children have been waiting for this opportunity for a long time. These fundamental lessons can help set them up for success and independence.
Next time we’ll delve a little deeper into the question, “You want to buy WHAT?!” and offer up some tips to help your new grad shop responsibly.
