financial first steps

Making Decisions that Work

Your income and living expenses have probably changed since you left college, so if you already have a budget in place, review and refine it. If money currently is left over at the end of the month, what’s the best way to use it?

1. Save it for upcoming expenses.
2. Invest in a new car, so you can easily get to job interviews.
3. Lease an apartment, so that you can live on your own.

"A" is the best answer. After years of financial self sacrifice, graduates sometimes take the first full-time job offered and soon rent their own apartment and/or buy a new car. When student loans come due a few months later, they suddenly find they can’t meet all their new expenses and are forced to move back home. If they have to break their lease, this may lead to even more debt.