financial first steps

If You're Short on Cash

Leaving college may lead to new expenses. Graduates often find they don’t have enough money to go around. If you check your budget and find a negative balance, what’s the best way to obtain the extra money you need?

1. Take out a short-term loan to tide you over until you earn more.
2. Brainstorm ways to reduce your expenses and increase your income.
3. Charge your living expenses on your credit card and pay them off later.

"B" is correct. Using a loan or credit to cover ongoing expenses may lead to serious debt. To cut your expenses, enroll in a low-cost cell phone plan, use the bus or subway, or find a roommate to share room and board. To increase your income, look for a job that pays what you need, work overtime, or consider part-time work. Also check your payroll exemptions to avoid overpaying Uncle Sam.