Money Management Tips For The Newly Employed

For those of you who are just graduating college the next step is to land that job, hopefully that career. You’re at a place now where you’re in charge of your finances. I’ve been there and I know the dangers and pitfalls that come up when you first start managing your finances. You don’t have to make the same mistakes that so many before you have made. I’ve selected four tips that I believe will help you be successful when it comes to money management.

License: Creative Commons image source
License: Creative Commons image source


You’re finally making money and gaining your independence, so it feels good and right to start spending your hard earned money. But how much are you really making, how much does it cost to live and how much does it cost to have the fun you want to have? These are all the questions you must ask yourself when it comes to planning a budget for yourself.

Don’t think that you’re too young to start budgeting. It’s a critical first step you should take when you start working to take control of your finances so that they don’t take control of you. A recent study shows  that 62% of those in their 20’s claim to have some sort of financial stress, while another 15% said they had a high level of stress.

  Start a Freedom Fund

Money that you set aside for emergencies such as, vehicle repairs, job loss, medical incidents, etc… You want your freedom fund to be about 3-6 months of salary put aside. This should give you the freedom to purchase a new vehicle or search for a new job without having to stress about finances. It should help you sleep at night knowing you have financial security for a substantial amount of time.


As a 20′ something year old it might seem a little absurd to begin to think about your retirement, but that idea couldn’t be further from the truth. The sooner you start the better. Though it may seem like a big sacrifice now to put $100 or more away a month for retirement, it’s the best thing ou can do to invest in your futre. Better to sacrifice now, then have to sacrifice when you’re older and may not be able to work like you are able to now. Learn more about a 401(K) from Wikipedia.

Tip: The pros suggest taking 10% of your pay-check (before taxes) and setting that aside as retirement.

Automated Savings

One of the easiest ways to be disciplined in savings is to automate a pecantage or certain dollar amount every paycheck to your savings. That way you never see it on your pay-stub and never have to go through the proces of taking out money and transferring it. Out of sight, out of mind. You can also automate for your bills. You will have to work this out with the credit card, utility company or whomever you owe money to. But it’s a smart move to make so that you don’t spend all your money before your bills get taken care of.

Taking simple steps like the ones I’ve mentioned above can transform your financial status quick. You can take control of your finances like never before if you implement these ideas.

About the Author: Henry Hernandez is a financial blogger who has learned a lot about financial responsibility through his own success and failure. He write articles for

You can check out Henry on Google Plus.

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