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Graduating from a local college+living at home+living frugally was detrimental on a personal level, yet wise on a financial level. The only loan I ended up taking out during my undergrad was a small one which was paid off four months after graduation. By the grace of [insert deity here], I got through college debt-free...feels weird, yet great. However, I'm puzzled as to what financial steps I should take next (other than avoid debt like the plague). All I have at the moment is a bog-standard checking and savings account (the latter to which I'm gradually contributing to), though I've been contemplating opening a credit card. My issue is the spotty employment (temp jobs+internship) I've had post-graduation...it's hard finding steady, paying work in my field (Film/TV).
Should I keep my nose clean until I find steady employment, or should I start investing in a credit card and what have you NOW? Any feedback would be appreciated!
Graduating from a local college+living at home+living frugally was detrimental on a personal level, yet wise on a financial level. The only loan I ended up taking out during my undergrad was a small one which was paid off four months after graduation. By the grace of [insert deity here], I got through college debt-free...feels weird, yet great. However, I'm puzzled as to what financial steps I should take next (other than avoid debt like the plague). All I have at the moment is a bog-standard checking and savings account (the latter to which I'm gradually contributing to), though I've been contemplating opening a credit card. My issue is the spotty employment (temp jobs+internship) I've had post-graduation...it's hard finding steady, paying work in my field (Film/TV).
Should I keep my nose clean until I find steady employment, or should I start investing in a credit card and what have you NOW? Any feedback would be appreciated!
You never "invest" in a credit card.
That said, yes, you should have one. Open it, but pay off the balance monthly. Basically use it to replace your debt card.
If you wouldn't have paid for it with cash, don't put it on the card.
Your real priority should be a job though. That's going to be much harder given your field but ultimately much more important than getting a credit card.
The first thing you need is a job. After that, just max out your 401k to employer match and start saving for a down payment on a house.
Keep credit csrd debt at under 2k at all times. If you avoid accumulating significant debt and buy a house, you are ahead of the game. Excess money should be going into a low risk mutual fund, unless you are able and willing to manage the money independently.
The first thing you need is a job. After that, just max out your 401k to employer match and start saving for a down payment on a house.
Keep credit csrd debt at under 2k at all times. If you avoid accumulating significant debt and buy a house, you are ahead of the game. Excess money should be going into a low risk mutual fund, unless you are able and willing to manage the money independently.
I wouldn't buy a house until I was a little more settled in a career. Being young and buying a house doesn't make a whole lot of sense to me
The next step is actually enter the world and start growing-up. That, of course, means get a 'real job' - not just part time stints to supplement your spending money while living at home. Also, the fact that you got through college debt-free, doesn't mean that your room, board, transportation, books, tuition, fees, food, insurance, etc .... were actually "free".
You apparently have a very supportive family which is not pressing you, even though you are now a college graduate and seemingly content to live at home. That's probably more common today in the light of today's job market and economy, than in the past. But, hopefully (?) , you didn't attend college four-years, simply so you could hang your diploma on the wall and indefinitely hang-out at mom and dad's.
The reason you are struggling with figuring-out what to do next, is that your parents aren't really pushing you to grow-up. Ask your parents to teach your final 'post graduation' class entitled: "How much does it really cost to support someone who is 'living for free' in the world?" ... perhaps, you could minor in: "What did it really cost you, for me to attend college 'debt free' while living at home?"
Your next steps will become more obvious, once you realize that you are no longer a child and it is time for you to 'grow-up' and leave the 'nest.'
Some things that I wish I had done at your age / situation:
1. Open a few savings accounts. One should be for true emergency use only (hospital/jail). The other should be for regular emergency use (your paycheck is delayed and you need to cover housing/car payments--also called "friction" emergency). Another one would be for regular use (vacations/gifts/big purchases). Get in the habit of trickling a few dollars in each per month. I'd recommend the "sweep" method. You have one account into which your pay goes, and then auto transfer to your other accounts the next day. Leave only what your budget allows. You can spend what is left any way you choose, after all the auto transfers have been swept out.
2. Open a SDIRA and contribute into via auto deposit, even if it's a very small amount. Once you get a job, invest a percentage of your pay (at very least the amount of the employer match) + a % or two.
3. Get a low limit rewards credit card that you can pay off each month. I don't believe in debit cards (I've seen way too many people get into a jam with them and i've seen way too much fraud.) This will build your credit, get you some nice perks and you can use it for travel. (I have an airline card and I'm able to take a few vacations for little cost because of it.) If you carry a balance, you're not doing something correctly.
As for the job front, keep doing the frugal thing until the paychecks come in steady. Once you've stabilized, give yourself a few month's buffer to build up those accounts. You don't need anything right away. Save up enough for some buffers (in case the job falls through) so you'll have a nice cushion. Too many people immediately start spending the second they get a job, and get into trouble by not having a buffer.
I'm 25 and sort of in same boat as you...however I've been lucky to find a full time job.
1) You do need to get a credit card. They are a necessary evil to play the credit score game which impacts everything. Just pay it off every month.
Other than that, people tell me start contributing to the 401 K if you're lucky enough to have one, or contribute something to a Roth IRA.
People tell me to relax about the house since I'm only 25- you have plenty of time to buy and shouldn't have that be 100% focus to the detriment of other things.
The next step is actually enter the world and start growing-up. That, of course, means get a 'real job' - not just part time stints to supplement your spending money while living at home. Also, the fact that you got through college debt-free, doesn't mean that your room, board, transportation, books, tuition, fees, food, insurance, etc .... were actually "free".
You apparently have a very supportive family which is not pressing you, even though you are now a college graduate and seemingly content to live at home. That's probably more common today in the light of today's job market and economy, than in the past. But, hopefully (?) , you didn't attend college four-years, simply so you could hang your diploma on the wall and indefinitely hang-out at mom and dad's.
The reason you are struggling with figuring-out what to do next, is that your parents aren't really pushing you to grow-up. Ask your parents to teach your final 'post graduation' class entitled: "How much does it really cost to support someone who is 'living for free' in the world?" ... perhaps, you could minor in: "What did it really cost you, for me to attend college 'debt free' while living at home?"
Your next steps will become more obvious, once you realize that you are no longer a child and it is time for you to 'grow-up' and leave the 'nest.'
...WTF?
1) "Parents" is singular in my case, as I was raised by a single, working-class mother who won't tolerate me sitting on my ass, and rightfully so. My undergrad expenses were taken care of via financial aid+out of pocket spending on my part+loan.
2) I've been looking for a "real job" since my last semester of college, and unfortunately have come across work unrelated to my field in the process. As a result, I saved up for a financial cushion that allowed me to get by as I pursued a seven-month unpaid internship (which I just finished up) in my field. The scheduling of said internship made it nearly impossible to squeeze in even P/T work, but I stayed until the end because it was a great learning and networking experience. I've since resumed my "real" job search, and am saving, penny-pinching and re-assessing my entire approach so I could not only succeed in my field, but stand on my two and be my own man...something that's easier said than done no matter which way you cut it in 2014.
Don't undermine my sacrifices or ambition with that tired old "lazy millenial" argument.
Graduating from a local college+living at home+living frugally was detrimental on a personal level, yet wise on a financial level. The only loan I ended up taking out during my undergrad was a small one which was paid off four months after graduation. By the grace of [insert deity here], I got through college debt-free...feels weird, yet great. However, I'm puzzled as to what financial steps I should take next (other than avoid debt like the plague). All I have at the moment is a bog-standard checking and savings account (the latter to which I'm gradually contributing to), though I've been contemplating opening a credit card. My issue is the spotty employment (temp jobs+internship) I've had post-graduation...it's hard finding steady, paying work in my field (Film/TV).
Should I keep my nose clean until I find steady employment, or should I start investing in a credit card and what have you NOW? Any feedback would be appreciated!
You're a lot better off spending your time getting a job than worrying about getting credit history right now. Let's keep it simple. Network, network, network - however you can. Be persistent.
1) "Parents" is singular in my case, as I was raised by a single, working-class mother who won't tolerate me sitting on my ass, and rightfully so. My undergrad expenses were taken care of via financial aid+out of pocket spending on my part+loan.
2) I've been looking for a "real job" since my last semester of college, and unfortunately have come across work unrelated to my field in the process. As a result, I saved up for a financial cushion that allowed me to get by as I pursued a seven-month unpaid internship (which I just finished up) in my field. The scheduling of said internship made it nearly impossible to squeeze in even P/T work, but I stayed until the end because it was a great learning and networking experience. I've since resumed my "real" job search, and am saving, penny-pinching and re-assessing my entire approach so I could not only succeed in my field, but stand on my two and be my own man...something that's easier said than done no matter which way you cut it in 2014.
Don't undermine my sacrifices or ambition with that tired old "lazy millenial" argument.
-- Sorry, I was reading 'between the lines' and perhaps drew some invalid conclusions. When you said you were a college graduate, in your "Late 20's," still living at home and looking for a 'real job,' --- I pictured a 28-29-year old guy, living in his parent's basement and still trying to "find himself." One does wonder 'what else' you have been doing since high school and (before/after college) -- and how you have managed to support yourself so admirably (?)
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