Graduating? Here’s What You Need to Know
Part 3 of 3

 

Here are the last four tips in a three part series on finances for recent grads:

 

6. Long-Term Investments: Now that you have decided to save money, look at where you are going to put it. You still have a long time before retirement so you can really get brave with your money – consider putting 90% in diversified equities. It is the riskiest, but it also pays the best if and when it pays. Get with a financial planner to work out what is best with you and when.
    

7. Keep some money liquid: Don’t put everything into stocks, etc. Save some money for that unexpected expense that you need to pay for right away.
    

8. Borrow the Bank’s Money: Credit cards are one of the best ways to establish credit, and also one of the best ways to ruin credit. Pay off your bills in full each month and start building a solid financial future for yourself.
    

9.  Get insurance: But only get insurance you need. You need auto, you need health (which you will probably get from your job), renter’s insurance if renting, homeowner’s insurance if buying, and life insurance. Life insurance is the last thing you want to worry about, and be sure to see a reputable agent so as not to end up “over-insured” which is just almost as bad as no insurance at all.