Financial Advice for New College Grads

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How’s it going everybody this is feed the bush some of you new college graduates have asked me what you should do financially to make all the right moves right after you graduate so i’ve put together a list of stuff that you should consider not that you should follow every single step but these are my recommendations even before you graduate it’s good to work

During the summer while you’re going to college so you can build up your internet experience with that right when you graduate your resume will help ii have built up a little bit and so it makes the employers easier to hire you because they see there’s at least something and other companies were willing to hire you as an intern as well but once you start working my

Recommendation is to work as hard as possible because this is the chance for you to learn as much as you can so therefore you need to work really really hard to gain as much experience as you can this is gaining experience that would allow you to obtain new skill sets which will make you even more employable to other employers and if you do apply yourself and work

Really hard and you actually make a contribution and do something useful you should expect raises of something like 10 25 percent or more during your first year i don’t know this is obvious or not but at your job you need to be likable now your boss is not going to give you raises if they don’t like you okay you’re not going to get a promotion if they don’t like

You so it works especially well if you are liked by most people at your position now if you have trouble doing this i highly recommend this book how to win friends and influence people i read it multiple times you can actually get this audiobook free through the audible 30-day trial i’ll leave a link down in the video description below it’s an affiliate link so

If you click it it’ll help this channel out now an interesting study that i saw once was that drinkers actually make a higher salary than those who absolutely do not drink now if you’re social drinker it makes sense because when you’re a social drinker you socialize with other talkers and then you bond and stuff and then that’s how you get to know people a little

Bit better it’s through drinking now have something to say about drinking because alcohol is so easy to get these days long as you’re over 21 you can buy drink it and it seems like it’s fine for everybody it’s the health concerns are not there but the thing that caught my attention is i went to this body world exhibition one time and i went to this one exhibit

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That had a liver of an alcoholic and it had all these spots on it just go look it up on the internet for a drinker you’re gonna damage your liver physically and there will be like little liver spots in there due to the drinking now you have to weigh the consequences are you gonna drink a little bit and so he realized with your coworkers are you just gonna cut out

Alcohol completely and be a little bit more healthy it’s really your choice but moderate drinking should be okay if you just have one or two but really it’s the binge drinking that really affects you but i mean even moderate amounts of drinking can give you cancer now there’s a concern of when you should switch jobs if you’re happy at your job maybe you should

Stay some people just keep on staying but some people are very content at staying where they are even though they’re not really advancing in their career they’re just kind of staying idle you know kind of have a flat trajectory they’re not moving up on the corporate ladder or whatever or if you’re not getting the pay increases that you deserve you might consider

Switching jobs and when you switch jobs you should kind of hunt around and get like maybe 10 to 25% increase that’s what you should aim for even if you’re not actively looking for a job you should still go to interviews and stuff maybe they’ll give you a nice offer or not but it would also help you with your interviewing skills another aspect of this is the salary

Negotiation part people it’s not gonna tell you how to do this actually a lot of times the companies will try to hide the period at which the salary is negotiable they trying to rush through it really quick so that you can go okay and then the salary is set and then you can’t change it anymore sometimes in an application it will have a desired salary if you write

Down whatever that is they’re going to offer you whatever that is if they want to hire you now you can’t really go back on that number you can’t go oh sorry i want something higher it’s kind of bad for but i guess you could try to get it higher after the fact but it’s gonna be much harder now when a company wants to hire you they’re gonna give you a phone call and

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It’s gonna be a short period at which you can negotiate so you really need to know when exactly that happens they’re gonna spell out everything in your offered the salary all the benefits and stuff that is the time to negotiate but it’s even better if you have a salary that you’re shooting for and if you’re they’re not meeting it you want to negotiate and say well

Can you offer this such-and-such and maybe they need to go back and discuss now when you’re actually working there’s various option to select to get you the maximum benefit in your salary i do recommend it get the high deductible healthcare plan because then you have a small amount of money that will be placed in an healthcare savings account now this is cash that

You can use for health reasons and if you build it up enough you can actually set that amount and put it in an investment account so you can let that grow tax-free and on top of whatever allowance the high deductible healthcare insurance gives you can add it all the way up to about 3000 some dollars so you can contribute tax-free to that this is on top of the 401

K so 401 k is usually maybe like $18,000 starting off maybe you don’t have the ability to contribute $18,000 per year into a 401 k so you need to at least go all the way up to the matching criteria of the 401 k there are different schemes for 401 k matching sometimes they do one-to-one matching up to 3% 5% if you if it’s a really good plan 6% and then if you’re

Really senior it goes 8 9 10 % okay if you put in 3% they’ll put in 10% that’s considered really good what’s pretty good is you put in 3 percent and the company put in 6 percent sometimes it’s different you have to put in 6 percent and the company only puts in 3 percent the limits sometimes is set by your total salary so it could be 3 percent of your total salary

Other times they set the limit on the total contributions you can put so for example if it’s $18,000 limit on the 401k and they put in 25% then the maximum the company will put in is $4,500 in that case sometimes you have a public company where you can contribute to an employee stock purchase plan and usually you can do a pretty risk-free by selling right at the

Best period other times there’s a really long vest period at which it makes it more risky for example you have to buy and hold for two years that means you have to put in whatever amount and you’ve got to let it sit and it can go up or down and by the time you sell it a lot can change so it’s not very risk-free at all whereas if you can sell right on the vest

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Date it becomes a really risk-free thing especially when there’s an incentive when there’s a discount in your purchase price usually it sits around 15 to 25 percent so i’ve heard some people actually go to companies where they don’t have a 401k plan that essentially means that you get a reduction in salary your total compensation is less so you have to take that

Into consideration there are those out there that do not pay into 401k and it’s really hurting your bottom line and i think you should not take this lightly when they don’t offer a 401k plan at all you can just go oh that’s just a really small amount a couple thousand dollars but it adds up if you stay at a company for i don’t know three five years it’s like 1020

Thousand dollars worth of money of just matching not not your contribution personally i recommend to buy a low-cost used car maybe like a five six year old civic or something like that because you don’t really have money to pour into a car just yet there are much better things to buy that does not depreciate this has more to do with not being a consumerist and

On top of that you can save a lot by bringing your own lunch even better if you can join the bringing lunch crowd you just eat with the bringing lunch card rather than go out to eat although there’s the previous argument of drinking and socializing so you gotta weigh the two maybe you eat out once a week but not every single day hi don’t do that every single day

Of course all of this to buy an affordable car not eat out all these other saving habits is really to save money for a down payment or on a home and you’ll be glad you did because you can be the one that can be in a home first so these are all just random little things that i would recommend and i hope you enjoyed these small little tidbits of recommendations i

Have a lot more actually and this video is getting a bit too long give me a like o’rear comment down below let me know what you think of my recommendations and don’t forget to subscribe over here thanks for watching

Transcribed from video
Financial Advice for New College Grads By BeatTheBush

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