CHICAGO, IL / ACCESSWIRE / November 11, 2020 / For more than 35 years, William "Bill" Kasten has delivered significant value to his clients by helping them plan ahead for their short-term needs and long-term financial goals. As a partner and wealth advisor of William Blair, Kasten has extensive experience in advising and guiding young professionals in making the right financial decisions in their post-grad transition.
For many, college graduation marks the start of a career with new responsibilities and decisions. It can be an exciting but uncertain time, as young people are ushered into a phase of managing their own personal finances. Bill Kasten notes that remaining hopeful and being proactive about one's post-college career is as important as ever, and it is never too early to begin planning for your financial future. Especially in light of the unprecedented pandemic, planning your finances as early and efficiently as possible has never been more critical.
"The Covid-19 pandemic serves as a great teaching tool on the importance of budgeting," Bill Kasten noted. "At every life stage, including post-grad, it's crucial to build at least a small financial cushion to pay for unexpected expenses."
In the following, Bill Kasten shares his top five practical ways in which recent post-grad students can begin planning their financial future.
Stick to a budget and spend money wisely
The first step in handling money responsibly is understanding where it is coming from and where it is going. By establishing and sticking to a monthly budget, you're setting yourself up for long-term financial health.
"Consider saving a portion of your income for an emergency or an upcoming big purchase," suggested Bill Kasten. "When starting a new job, have your employer directly deposit monthly paychecks into your bank account so the process of transferring funds into your savings account is easy and painless."
Pay down debt
While the idea of making the minimum monthly payment on your debts is tempting, always opt for the more aggressive repayment plan. If the amount is high relative to your income, look into a repayment plan that is manageable, including schedules and options for federal loans. The sooner those loans are paid off, the less interest you have to pay, and the more financially free you will feel.
"A plan of attack for driving down debt should be included in your monthly budget. If you don't budget to pay down your debt, you will likely revert to paying only the minimum balance," explained Bill Kasten.
Start saving for retirement
"Thinking long-term about savings and goals is essentials to setting oneself up for a prosperous financial future," said William "Bill" Kasten. "Even though retirement may seem a long way away, it's never too early to start saving. Manage your savings so that each month a portion of your paycheck goes directly into a savings account, and if you're in a position where your company offers a 401(k), take advantage of this offer."
Saving just an extra $25, $50, or $75 a month can add up over time due to the power of compound interest and dollar-cost averaging.
While life after college might not be an immediate financial paradise, focusing on creating and adhering to a budget while being intentional about establishing a firm financial profile is essential. No matter how much or how little you make in your first job, be cautious with your money and think of the kind of financial future you are working towards whenever you feel like spending more than you can realistically afford.
This content is for informational and educational purposes only and not intended as investment advice or a recommendation to buy or sell any security. Investment advice and recommendations can be provided only after careful consideration of an investor's objectives, guidelines, and restrictions. The factual statements herein have been taken from sources we believe to be reliable, but such statements are made without any representation as to accuracy or completeness or otherwise. Opinions expressed are our own unless otherwise stated and are subject to change without notice.
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SOURCE: Cambridge Global