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Starting your first post-graduation job? Here’s how to organise your finances

NEW YORK (AP) – When the graduation season is over, many college grads embark on internships or their first full-time jobs.

Navigating your finances when you start adult life can be challenging, from understanding your health insurance and benefits to managing a budget.

Finding a job is often the first hurdle, so if you’ve accomplished that, take a moment to be proud of yourself.

“Once you do get that first job, pat yourself on the back,” said Director of Financial Planning for Betterment Nick Holeman, a financial advisory company.

Then it’s time to think about your financial future. With credit card delinquencies growing and interest rates still high, it’s more important than ever for recent graduates to start their adult lives on the right financial track.

Here are recommendations from experts about how to do that:

PHOTO: ENVATO
PHOTO: ENVATO

SAVE FOR EMERGENCIES

Emergencies are tough to prepare for because you never know when they will happen and how expensive they will be.

However, it’s a good practice to have an emergency fund that will alleviate some of the financial burden if something goes wrong.

“Think of your emergency fund as a ‘break glass in case of emergency’,” said Holeman, who recommended that you keep your emergency savings in a separate bank account.

Emergency fund amounts vary depending on each person’s circumstances but Holeman recommends that you save three to six months of expenses.

This is an ideal scenario, but any amount of savings can be helpful in case of an emergency.

ADJUST YOUR BUDGET

Budgeting is a key component of your financial life, whether you’re trying to save for your emergency fund or pay down debt.

Budgets change along with your finances, so when you land that first full-time position and maybe move to a new city, you need to change your budget to reflect your current financial reality, said Associate Professor of finance at Costello College of Business at George Mason University Steve Pilloff.

If you’re using your budget to find ways to cut costs, Holeman recommends you focus on big expenses, such as rent or transportation costs, rather than small ones such as coffee or shopping.

If you have debt, Holeman also recommends you first focus on paying off high-interest debt.

If you don’t have debt, focusing on building an emergency fund and saving for short-term goals is also a great place to start setting goals for yourself.

Budgeting is not a one-time process. In order to achieve your financial goals, you have to continuously assess and adjust, Pilloff said. – Adriana Morga

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