advice for a graduate?

[cyenna]

I'm graduating this spring as a microbiology major and I've never taken a business class so I don't really know what a flex plan is or a 401K is. My roommate had to explain a credit card to me (money I don't have but I can spend! wow!). I will need a more reliable car (I will be commuting about 80 miles a day total) so how should I go about getting a car? I am looking at a used hybrid but it has to have over 100K miles on it for me to consider it "affordable". I'll be living with my mom so I'll be saving on rent but I do want my own place because she still tells me to brush my teeth. (sad)

 

So! Anyone have any advice? Anything they wish they did differently after graduating college/going professional? Anything you did that saved your future? I'd like to hear about it.

[andy]

Put the credit card in a safe deposit box, so you can get it for emergencies but not use it on every-day stuff. Consider getting an American Express card -- you can use it to rent cars, etc but have to pay it off at the end of the month. Credit card debt is awful.

 

Put as much money as possible into your 401K (or other) retirement plan. A little bit extra now makes a *huge* difference down the road.

 

A reliable car will save you more money than a cheap car. I'd be very worried about buying an old hybrid, the electrical side might not age well and I'd bet my favorite coral that it's wickedly expensive to fix.

 

Live at home and savesavesave. A good chunk of cash in the bank gives you huge amounts of flexibility later.

 

Be sure to brush your teeth.

[CCR]

A few things. SAVE what ever funds you can get your hands on. ING.com has a savings account with NO minimum balance at 4.5% Ok your saying "save what money"!!! need to have it to save it. I know. But you can open it with 50 bucks!!! and get to it. EVERY THING you do and learn in life finance has got to be on how to keep your money and minimize tax. I would give you a book to read, but the bottom line is "The Test of Money". IS IT SAVE.? IS IT LIQUID? DOES IT HAVE A RATE OF RETURN?. You can start building your credit history by getting a secured credit card. Look on line. If you get a job, it MUST have health benefits at the very least.

 

If your driving 80 miles a day. You may want to consider a home business. To have more tax deductions, to off set expenses.

 

OK now I may have confused you. If so ask questions.

 

Now I do want to say Congratulation!!!!!!!!!!(clap) (clap) (clap) (rock2)

[Piero]

first: PAY YOURSELF FIRST (i.e savings), and don't lease cars, buy them

 

As annoying as she is, I do recommend Suze Orman because she's a good source of grounded financial strategies for recent grads who are not familiar with finance. And she speaks to women. link

 

just a few:

google query 'recent graduate financial advice'

 

the regulars:

http://www.fool.com/

http://www.smartmoney.com/

http://money.cnn.com/pf/

http://www.cnbc.com/

http://money.cnn.com/

http://finance.yahoo.com/

[Nyles]

Best advice I could give anyone, get yourself in a position to buy a house ASAP, till you get a solid job yo won't be able to get a 401k but you could setup a Roth IRA or something similar, if your struggling for credit get a credit card from a clothing store and make sure you make the payments and close the card, or jewelry, even if you have the cash it will build your credit. But most of all get yourself in a position to buy a house ASAP, even if its a small one.

[180Brandy]

A few things I learned. Number one Never get yourself into something you can't get yourself out of. And credit cards are terrible!!!!!!!!!!!!!!!!!!!!!! If you must have a credit card pick one that has no annual fees and no hidden cost, and a decent interest rate. One thing I learned is there is a difference between a charge card and a credit card. A 401k is a wonderful thing to have. Just think you could be rich when it comes time to retire. As far as a car subarus are a good choice. Those cars run forever and maintenance on them should not break the bank.

 

 

Good luck !!!

hope this helps

[dsoz]

I made the mistake of always saying "I can afford a house next year after I get a raise..."

 

The way that it really worked was that the price of houses went up FASTER than I would get raises. I kept falling further and further behind in the game. I kept putting it off because I wanted a house that was in a certain neighborhood, or a certain town that was a little above my means. I could have afforded a smaller house, or one in a different area.

 

If I was to be given a do-over, I would get a starter house right off the bat. A smaller house that maybe needs some work (as long as you are handy, or know someone that is), and is in a lower area of town. It will appreciate, and you will be able to sell it and use that equity as a downpayment on a bigger/better/newer/nicer house in 5 or 10 years. This is where I am at right now. In a 90 year old house that I am fixing up in hopes of making money on it in a few more years. The value on the house has already gone up about $60,000 in 2 years. That is not even counting the improvements that I have made in that time. This is a good investment!

 

And the other advice. DON'T USE CREDIT CARDS for day to day expenses. If you make the debt go up faster than it comes down you will be the next one in line for a bankruptcy. Do you want that?

 

dsoz

[Stigits]

Advice: Most common mistake after buying a new house is trying to fill it. Most people grow up in a house that has alot of stuff in it. Remember that it took your parents years to fill the house up with stuff. For example my Dad has a TON of tools. It would take me a years pay to get half the tools he has. Treat it like your fish tank and resist the need to fill it quickly.

 

Another tid bit is never buy on credit ever that you can't pay off the next day. EVER. If you want a new car start paying 200 a month to your saving account untill you have enough to buy out right. A loan for a first time car buyer is around 7-8% If you buy out right you money is making you 7-8% plus whatever interest it earned in your savings account. Oh and always buy 2-3 years old. The first 2-3 years is where half the value of the car depreciates.

[cyenna]

If you want a new car start paying 200 a month to your saving account untill you have enough to buy out right. A loan for a first time car buyer is around 7-8% If you buy out right you money is making you 7-8% plus whatever interest it earned in your savings account. Oh and always buy 2-3 years old. The first 2-3 years is where half the value of the car depreciates.

 

Thanks guys for all the advice about savings. I definitely want to set something up ASAP. I'll look into IGN.com, CCR. I think I've heard other people say good things about them.

 

That would be what I would do if I was just doing city driving...but I need to drive about 40 miles back and forth from my job...I need a reliable car to make money. (sad) it's a double whammy. I need a job to pay for a car but I need a car to go to my job... ouch. What to do....

[impur]

I work in the finance industry, financing cars for people with....less than perfect credit.

 

If i were in your shoes, i would head to a credit union and open up a checking and savings account. Ask them about a line of credit to use for overdrafts, money in times of need, etc. This will open a new account on your credit bureau that is revolving and normally maintains a 0 balance. ANY NEW CREDIT YOU OPEN WILL HAVE A NEGATIVE IMPACT ON YOUR CREDIT INITIALLY. So don't sweat it if you score drops. If you borrow against the line of credit, pay it back as soon as possible. Lines of credit are similar to credit cards, but you don't have a card. You can move money from it to your checking/savings or vice versa and they have a lower APR.

 

Buy a 4 cylinder honda or toyota. Those are the only cars on the market that maintain their values even with high mileage. They will also get you 25-40mpg. You can find a early 90s honda/acura for anywhere from 2-5 grand and if you maintain it, it will last you a long time. Then when its time for something else you can get your money back out of it.

 

Finance the car thru your credit union. Ask them to setup regular monthly payments on the car from your checking account. This way the payment is made each month and you never have to worry about forgetting, you don't have to do a thing. Typically credit unions offer a discount on the interest rate on your car if you set this up. Of course this requires you to have enough money in the checking to make the payment. Setting up direct deposit at your work should take care of that problem.

 

Be sure to make your payments every single month. Once you fall behind on a bill, its very difficult to catch back up. Don't let yourself get in that spot. If you can afford to, add some extra money to your car payment to pay it off quicker and effectively lower the amount of interest you pay over time.

 

Your credit follows you everywhere. Trade lines stay on your credit report for 7 years. 1 bad line will double the amount of interest you will pay in the future.

 

Good luck

[Nyles]

Miles your so smart....

[CCR]

One more thing. I am also in the finance business. I am a branch manager for a mortgage company. Between having been a real estate broker and what i love to do now. I'm at 30 years. Just a little changing of a few things from other posts. YES get credit. DO NOT close an account. ( Sears visa etc.)If you are paying off a charge card, pay $5. more. Remember this. Credit is NOT one word. It is "credit history" NEVER MAX OUT ANY CREDIT CARD.Even if you never miss a payment, it will play hell with your credit score. NEVER go over 35% of the value of the credit card. This shows your responsible and are using your credit responsibly and don't live on the edge. Yes absolutely. Buy a home before you rent and throw it down the crap-per. The sad part is, the more you make, the more you pay Uncle Sam. There was a lot of great advise in all these post for you. Good Luck. And Good Credit to you. If you have any question more. Post, and/or PM me.

[impur]

Eh, just sharing what i've learned doing what i've learned!

[tidalsculpin]

Buy less. Save more. Live with less stuff. Live close to work and keep your commute simple.

 

Don't take work home with you.

 

If you think you can raise a child, do it. It is worth every moment you spend with them.

 

Share your life with another human. It will get lonely at some point if you don't.

[Twitterbait]

only 2 things...

 

never eat the yellow snow

 

and

 

don't catch snowflakes on your tongue until you are sure that ALL the birds have flown south.

[cyenna]

Buy less. Save more. Live with less stuff. Live close to work and keep your commute simple.

 

 

I wish I could live close to work but I already took the job far away. I could move there but I can't really afford it straight out of college and plus, I reeeeeeeaally don't want to move to Silverton. Any advice about a long commute?

[acrylics]

first: PAY YOURSELF FIRST (i.e savings)

+ eleventy billion

Time is one of those things you can't make up for in many ways, but the power of compounded returns will serve you well. 401k plans are great, esp if the company matches, choose these over IRA plans. If paid as subcontractor or self-employed, look at "solo 401k" plans (aka individual 401k). Fidelity and a coupla others offer these.

On commuting; don't, but if you must - get audio books. They'll pass help pass the time, keep stress levels lower, and you'll learn something on the way.

Take care of your health.

 

From my own personal stash; budget your time as least as much as your money - it's your most important commodity.

 

James

[dsoz]

What is wrong with Silverton? I don't live there, but from what I can see it is a nice little town. There may not be as many things to do there, but Salem is very close, and Portland not much further away.

 

My advice on commuting. Don't. It gets old very quick. I only have a 20 mile and 35 minute drive each way, and I wish I could spend each of those minutes doing something else. Like being with my family. Otherwise, I listen to the radio. I think audio books would be too distracting for me. I would be concentrating on what was going on in the book, and not pay attention to the road. That would be bad.

 

If you can afford it, get a place that is closer to work. Mt. Angel is still somewhat affordable, Woodburn is really affordable (if you can get into one of the "nicer" neighborhoods, some are a little bit rough). And check out starter homes in Silverton. A 5 minute commute would be great.

 

dsoz

[CCR]

Silverton is spendy. Wife and I where checking out houses there and couldn't beleave how much higher the prices are than Salem. So for now, rent in Salem, or Silverton till your settled. When your ready to buy, there are 100% loans currently in the low 6%. One thing at a time. Get your job history going. And rent history.

 

 

I'm so proud of all the people here trying to help!!!!! Way to go club!!!!(clap) (clap) (clap)

[cyenna]

What is wrong with Silverton? I don't live there, but from what I can see it is a nice little town. There may not be as many things to do there, but Salem is very close, and Portland not much further away.

 

I'm not a fan of small towns. I get bored way too easily and plus, everyone I know will be in Portland. So, I will be commuting from Portland which is about 40 miles away... If you consider that a close commute then maybe I should stop groaning! (laugh) I think I wouldn't mind living in Wilsonville but I doubt I would be able to afford my own apartment and I'm leery of rooming with someone that I don't know and isn't a college student...

[Nyles]

OK CHECK THIS OUT....

 

http://www.kiplinger.com/features/archives/2006/04/gradguide.html

[cyenna]

OK CHECK THIS OUT....

 

http://www.kiplinger.com/features/archives/2006/04/gradguide.html

 

wow! That was incredibly helpful. Definitely gave me some ideas.

[reefgeek84]

I wish I could live close to work but I already took the job far away. I could move there but I can't really afford it straight out of college and plus' date=' I reeeeeeeaally don't want to move to Silverton. Any advice about a long commute?[/quote']

 

I hate traffic...I have had many long communtes, what I did, which is actually two fold is that I found a GYM (as in work out place) in the area where I was communting to. So I left early to miss the traffic and worked out and got ready there. This forced me to work out and excersise, plus I missed traffic completely. The money saved in gas by not sitting in traffic paid for at least half the member ship. Just find either a 24 hour or a LA fitness, that way you can go to one near where you live as well as the one by your work.

[cyenna]

alright, so to drag this thread back out....

 

 

does anyone use the Bank of America "Keep the change" savings account?

[WAVES]

Bank of American blows. you may keep the change, but I bet the fees will keep your dollar bills. I heard you actually had to pay a fee just to participate in that program!