By Jamie Bosse, CFP
The Kansas City Star
(TNS)
Graduating from college is an exciting milestone—one that marks the beginning of a new chapter filled with opportunities, challenges and a lot of learning. Among the many lessons you’ll encounter, understanding how to manage your finances is one of the most important. Good financial habits early on can set the stage for long-term stability and success.
Here are four key financial tips to help you build a strong foundation:
1. Understand what your lifestyle costs
One of the biggest adjustments for new grads is gaining a full picture of what life actually costs. During college, many expenses—like your phone bill, car insurance or even rent—may have been handled by your parents or through financial aid. Now, those responsibilities fall to you and it’s critical to know exactly what your monthly financial obligations are.
Start by listing all your income sources, such as your paycheck or any side income. Then, identify mandatory expenses like rent, utilities, internet, insurance, loan payments and groceries. These are the non-negotiables that must be paid each month. Once you have a clear view of those numbers, you can better determine how much is left for discretionary spending, like dining out, entertainment and fun.
Having a realistic understanding of your cash flow will help you make informed choices and avoid the stress of living paycheck to paycheck. It’s also the first step toward building a budget that supports your goals instead of restricting your lifestyle.
2. Invest in your career
When you’re just starting out, your greatest financial asset isn’t necessarily your bank account, it’s your ability to earn income and grow that income over time. Investing in your career can pay enormous dividends down the road.
This means consistently working to sharpen your skills, staying curious and embracing opportunities to learn. Take advantage of company-sponsored training programs, professional certifications, industry events and online courses. Seek out mentors who can guide you, offer feedback and help you navigate your chosen field.
Growth can also come from being proactive, asking thoughtful questions, taking on challenges and continuously striving to do your best work. The habits you build now will not only make you more marketable but also open the door to greater opportunities and higher earning potential in the future.
3. Have an emergency fund
Life has a way of throwing curve-balls when you least expect it. Whether it’s a car repair, an unexpected medical bill or a job loss, emergencies often come with a financial cost. Having an emergency fund in place can help you navigate these surprises without derailing your finances.
A general guideline is to aim for three to six months’ worth of living expenses set aside in a separate, easily accessible savings account. Start small if you need to—even setting aside $25 or $50 from each paycheck will add up over time.
An emergency fund gives you a financial cushion and peace of mind that you can handle the unexpected without relying on high-interest debt like credit cards. It’s a form of self-protection that can keep you moving forward even when life gets bumpy.
4. Make saving a habit
It’s never too early to start saving for your future. One of the most powerful tools at your disposal is the ability to harness time and compound interest to your advantage. The earlier you start saving—even small amounts—the more time your money has to grow.
If your employer offers a retirement plan like a 401(k), be sure to take advantage of it, especially if there’s an employer match. Aim to save at least enough to get the full match and increase your contributions every time you get a raise.
Make saving easy by automating what you can. Set up automatic transfers to your savings and investment accounts each time you get paid, so you don’t have to think about it. Over time, you’ll build financial security and create more choices for yourself in the future.
By understanding your expenses, investing in your career, building an emergency fund and making saving a consistent habit, you’re laying the groundwork for financial freedom and peace of mind.
ABOUT THE AUTHOR:
Jamie Bosse is a Certified Financial Planner professional and member of the Financial Planning Association of Greater Kansas City. Jamie is a senior advisor at CGN Advisors and the author of “Money Boss Mom, Helping Young Parents Be the Boss of Their Financial Future.”
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©2025 The Kansas City Star. Visit kansascity.com. Distributed by Tribune Content Agency LLC.
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