Just Do It
For other users, their key advice to new grads was to get started with saving and investing, even if it means starting small.
For other users, their key advice to new grads was to get started with saving and investing, even if it means starting small.
Career Opportunities
Recognizing that many college grads are feeling their way for their next step in life, several users were happy to oblige with guidance on matters of careers and education.
Recognizing that many college grads are feeling their way for their next step in life, several users were happy to oblige with guidance on matters of careers and education.
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Christine Benz is Morningstar’s director of personal finance and author of 30-Minute Money Solutions: A Step-by-Step Guide to Managing Your Finances and the Morningstar Guide to Mutual Funds: 5-Star Strategies for Success. Follow Christine on Twitter: @christine_benz and on Facebook.
Dragonpat wrote, “Nowadays it is even more important to do what I did when I was 21 if you can. Go to graduate school/med school/vet school/physician’s assistant training in something that you like and you can earn enough to support yourself and possibly dependents in the future.”
Scott123 opined that individuals should balance career and education plans with the return on investment. ”Do what is fulfilling and what you are good at. If that means grad school, go. Work hard to get that scholarship, and if it means state school rather than the Ivy, do it. Every employer you would want to work for understands that going to a second-tier school with a full ride was a better decision than taking out $200,000 in student loans to go to Harvard.”
Some posters were more equivocal, urging young folks to stay out of debt when pursuing advanced degrees.
Teacherman opined, “The economic universe is completely different from the way it was when I was a graduate. The job market is much more precarious. I would advise graduates to be very wary of incurring additional debt for graduate studies. A generous fellowship is essential for those whose parents are not loaded. Do not attempt to pay for post-graduate work yourself.”
In a related vein, CashMoneyMD is grateful that he didn’t go into hock to obtain an advanced degree, even if it meant some lifestyle compromises. “I’m 29 years old now. I went through an engineering undergrad and then went to medical school afterwards. I have no loans to pay back. Why? Because my amazing parents [saved to send me to college], and after I got out of college I worked as an engineer for a couple of years. While my counterparts were leasing/financing BMWs and renting nice apartments downtown, I was living at home, driving the same car I had since high school.”
Life Matters
Recognizing that personal finances are deeply intertwined with a person’s priorities and values, some posters offered advice on life matters as well as financial ones.
In addition to providing some financial pointers, Larry3 advised, “Work hard and have fun” and “Do something good for someone every day.” Can’t argue with that.
Scott123 wrote that squirreling away money isn’t the only worthwhile way to deploy cash. “Make investing/saving a priority, but don’t forget to set aside some funds for your quality of life, like going to sporting or entertainment events, taking vacations, particularly to see family (why haven’t you called?), or giving to charity.”
Finally, RetiredinFL spoke for all of us with this evergreen life advice.
“Be yourself, not what somebody else wants. Set short- and long-range goals. You will achieve what you really want. Help others who are in need.”
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FidlStix spoke from experience about the virtues of not tarrying when it comes to saving and investing. “Coming out of a famous West Coast college in the mid-60s, idealistic, and very much into the hippie scene, I was totally impervious to financial advice or anything to do with saving money.Scott123 opined that individuals should balance career and education plans with the return on investment. ”Do what is fulfilling and what you are good at. If that means grad school, go. Work hard to get that scholarship, and if it means state school rather than the Ivy, do it. Every employer you would want to work for understands that going to a second-tier school with a full ride was a better decision than taking out $200,000 in student loans to go to Harvard.”
Some posters were more equivocal, urging young folks to stay out of debt when pursuing advanced degrees.
Teacherman opined, “The economic universe is completely different from the way it was when I was a graduate. The job market is much more precarious. I would advise graduates to be very wary of incurring additional debt for graduate studies. A generous fellowship is essential for those whose parents are not loaded. Do not attempt to pay for post-graduate work yourself.”
In a related vein, CashMoneyMD is grateful that he didn’t go into hock to obtain an advanced degree, even if it meant some lifestyle compromises. “I’m 29 years old now. I went through an engineering undergrad and then went to medical school afterwards. I have no loans to pay back. Why? Because my amazing parents [saved to send me to college], and after I got out of college I worked as an engineer for a couple of years. While my counterparts were leasing/financing BMWs and renting nice apartments downtown, I was living at home, driving the same car I had since high school.”
Life Matters
Recognizing that personal finances are deeply intertwined with a person’s priorities and values, some posters offered advice on life matters as well as financial ones.
In addition to providing some financial pointers, Larry3 advised, “Work hard and have fun” and “Do something good for someone every day.” Can’t argue with that.
Scott123 wrote that squirreling away money isn’t the only worthwhile way to deploy cash. “Make investing/saving a priority, but don’t forget to set aside some funds for your quality of life, like going to sporting or entertainment events, taking vacations, particularly to see family (why haven’t you called?), or giving to charity.”
Finally, RetiredinFL spoke for all of us with this evergreen life advice.
“Be yourself, not what somebody else wants. Set short- and long-range goals. You will achieve what you really want. Help others who are in need.”
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“Now, these older, wiser eyes see my world quite differently. I’d tell a new grad to save, save, save, and learn the basics of investing your money, so you have a shot at being financially independent when you’re no longer working. I waited almost too long to take hold of the notion of saving and investing.”
AnaRegalia agreed about the benefits of starting early. “It’s the discipline of saving, not just how much you can save that will allow the average American to reach critical financial mass. I have a daughter in college, and we started a retirement account for her when she got her first job at 16. That money has more than 40 years of growth potential. Now that the retirement account is open, she has an awareness that she has a responsibility to save for retirement, no different than the responsibility to pay any other bill.”
“Likewise as soon as a child is born, start a college fund–even if you only open it with $100. Determine how much you can afford to save annually and fund it every month, just as if it were another bill.”
Darwinian noted that putting money to work on a regular basis is the best way to impose discipline on an investment program. “Use ‘dollar cost averaging,’ investing a fixed amount every month, preferably as an automatic paycheck deduction. It is easier to save money you never see, and this strategy will increase your investment returns because you will be buying more shares when their prices are low.”
Winstondunn urged new grads/new investors to not be deterred if they make a few mistakes along the way. “As soon as you have a job and stable income, invest in stocks every month. Put aside the money that you need for living that month, put aside an emergency fund (for example, three months of living [expenses]), then invest in stock. You will be clueless in the beginning and make a few mistakes. But you will lose little money because you don’t have much money at the beginning. You will gain experience from your mistakes. In a few years, you will have more money to invest, with more experience.”
Cutthroat pointed out that you don’t even need to have cash to start the learning process. “Even if you don’t have the cash to do it, create a phantom portfolio and watch it. Learn how the markets move and how to balance the portfolio regularly.”
Users also enthused about the virtues of taking advantaged of tax-sheltered vehicles. Rathgar advised, “Save the 15% in a tax-sheltered retirement plan and start at age 21. Everyone is eligible for an IRA once they have income.”
Taylor Larimore was on a similar wavelength: “‘What do you wish someone had told you when you were 21 and had a fresh diploma in hand?’ Open a Roth IRA at your first opportunity.”
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