Saving Tips For Recent Graduates

The New York Times has sagely advice for recent graduates wondering how to juggle saving on an entry-level salary. It is easier than you think:

  • Be mindful of seemingly inconsequential expenditures. Ask yourself each and every time you reach for your money: “Do I need this?” More than not, the answer will be”no”;
  • Strip your budget to the bare essentials. Not only will you save, but you will become accustomed to enjoying life without extravagant expenses;
  • Try to save 10% of your take-home pay in a 401k or Roth IRA;
  • If your employer offers a matching program, use it – it’s free money.
  • Keep the end goal in mind: “[Money] is most useful when you are old because it makes all the difference whether you wait for a bus in the rain to get to the doctor’s appointment or you ride in a cab.”

    Retirement may seem far off, but the sooner you start saving, the easier it will be to grow a nest egg. — CAREY GREENBERG-BERGER

    More Advice Graduates Don’t Want to Hear [NYT]
    (Photo: JP Puerta)