by Mandy Smith, CDFA '90
Congratulations on reaching an important milestone in your life: graduating from college! Transitioning from the classroom to the meeting room can be overwhelming and intimidating. It would have been nice if, along with your diploma, you had been handed the “real world handbook.” Although no handbook exists for you to follow in order to have a successful transition, there are steps you can take to manage your life, your money, and your future.
Set goals. Creating a vision is the first step in setting goals. Write those goals down. Make those goals measurable, set benchmarks and celebrate successes. Studies have shown that the discipline of writing down goals is crucial in achieving them.
Learn to live on a budget. While your current income is probably greater than your pre-graduation income, it’s important to live within your means. Start saving immediately and build up an emergency fund. An emergency fund is a cash reserve equal to three to six months’ worth of expenses.
Steer clear of debt and monitor your credit score. Incurring debt could prevent you from accepting opportunities you would love and gain valuable experience for the future because the salary may not be enough to cover your financial obligations. Protect your credit score by paying all your bills on time. A bad credit score could follow you for many years so you do not want to get off to a bad start.
Invest for retirement. You have just begun your career so planning for retirement is probably not at the top of your list of priorities. It should be. The sooner you start planning the better your chances for the retirement you envision. Take advantage of your company’s 401k. Invest the maximum to receive the employer match – that’s free money.
Enjoy life. Take every opportunity to travel and try new experiences.
You made smart choices in order to reach the graduation milestone. Now make smart choices managing your life, your money and your future…you will enjoy the benefits for years to come.
Mandy Smith is a certified divorce financial analyst and wealth management advisor with Milestone Investment Management, LLC in Carrollton. Mandy received her Bachelor of Business Administration in Accounting from the University of West Georgia in 1990. She currently holds her Series 7, 63, and 66 registrations with LPL Financial. Mandy also holds licenses for life and health insurance as well as variable life and variable annuities. While in college, Mandy was active in Phi Mu sorority and the Accounting Club. Mandy and her husband, Chris, live in Carrollton with their two daughters; one is a current UWG student. Mandy is an active member of her church and serves on the finance committee and is the treasurer for the Carrollton High School Athletic Booster Club as well as other volunteer organizations in Carroll County: Ferst Foundation for Childhood Literacy and Member of Carrollton DawnBreakers Rotary.
