Get Your SH*T Together: Post Grad Finances Edition

I graduated from the University of Kentucky in December of last year, and I have been working full-time and living the post-grad life for about two months now. Today’s post is all about the steps I have taken to ensure my financial success. This is all obviously my opinion and not applicable in all situations, but I have done a lot of research to set myself up for an easier road. Here are all the things I’m doing to make sure that my finances are rarely stressful.

Retirement:

This is over 40 years away for me if all goes well, so this feels CRAZY to even think about. However, it is so vital to invest small amounts early so your money can work for you. If your employer offers a 401k, that is awesome and you better be taking advantage of that. Many employers offer a match which is literally free money, so make sure you’re investing what’s required to get the maximum amount of free money. Then, someone else’s money can help pay for your retirement condo in Florida.

Another option if your employer doesn’t host this or you want extra investments is to open a Roth IRA. Mine is through Fidelity Go and it’s been great! You can invest up to $7000 a year into it and then withdraw tax-free at age 65. By starting at age 22 and investing $7000 a year into this, I’ll end up investing just over $300k in my life. However, I’m projected to retire with almost two million dollars just because of how long my money will be in the account and growing interest and just general value of money. $7000 may seem like a lot, but it averages out to about $583 a month and will really pay off in the long run. Good investment to me!

Investments:

Now just general investments that you can pull out at any time. I also do this through Fidelity just to have everything centralized. I like Fidelity because there are no minimums or fees for their programs. They make things very simple and have great customer service too. I utilize Fidelity Go for this account as well (a free robot advisor that invests in different groups of stocks by studying the market). I could certainly do all the investing myself, but I find that this robot advisor has been really good for me as I’m starting out. I have been studying what it does and then watching the market as well. You can never be too educated in this world, so I try to add some finance podcasts to my weekly routine as well as a morning newsletter. Links below!

Deeper than Money: This is hosted by Chloe, an entrepreneur out of Kansas City, and she really dives into the mental side of money. She talks discipline, the guilt of having fun, and even what you should be checking off your mental list sooner rather than later.

Networth and Chill with Your Rich BFF: This is such a great one for everyone! Vivian really simplifies complex ideas, like what the presidency means finance-wise and building a company without money from mom and dad.

Morning Brew: My Personal Finance teacher in high school (love you Mrs. Maxted!) told us this newsletter was something we needed to be signed up for, and I have been subscribed ever since. They cover all kinds of news, finances, and technology in a simple 5 minute read sent to your inbox every morning. It is so important to stay up to date on the world, especially nowadays, so I really enjoy getting this each morning.

Saving:

One thing that has helped me save the most has been a budget. When I plan out every category, I tend to hit my goals way easier. I currently use EveryDollar, and it’s been great. Of course there’s tons of similar apps out there, but this has been my choice.

I have yet to begin a High Yield Savings, but this is a goal of mine for the next month. Many of these accounts pay 3-4% interest, which doesn’t sound like a lot, but again free money!

One thing to keep in mind with your savings is you need a goal. Saving for the heck of it is great but there’s no push to save more. One of my goals is to purchase a home in the next few years, so I have a number in my mind that I need to hit before I feel comfortable doing this.

Fun Money:

Ok so you’re making big kid cash… what do you wanna buy? Some tips I have for that overwhelming urge to buy everything when your paycheck hits…

Make a Notes Page: I write down everything that I see and would want to purchase in a notes page. I try to watch sales and buy those things on a deal, but this also helps me step back and recognize that maybe I don’t need all these things.
Budget for It: Travel and experiences are important to me, so I make sure I have plenty set aside for these, so I can say yes to things when they pop up. This does mean I pack my lunch everyday for work and cut costs by not shopping much, but I plan to go on some pretty awesome trips this year, so I think it’s worth it.
Spend the First One: I don’t have any expenses as I live at home (thanks mom and dad!) So when I got that first paycheck, I did spend quite a bit of it on fun things simply because I wanted to! I knew that I worked hard for my degree and this job opportunity, so I rewarded myself with a lulu set, some new books, and even got a year subscription of Canva (best decision).

Well that’s all for me today. Thanks for reading! See you soon!