All Things Money: Budgeting, Saving, Taxes, Debt, and Loans

If your job offers a 401(k) match, be sure to contribute the maximum amount that your company will match. Be sure to live within your means. '17

Separate your wants and needs. '22

I use the EveryDollar budgeting tool. Easy to use and recommend so you can start practicing budgeting. Max out any retirement match you get offered, always. '18

Start your 401(k) with your first paycheck (if possible) and make sure to get the whole of a company match! Budget using a tool like Mint and figure out how much you realistically spend each month so you can start building up a savings account. '17

I do not have a concrete budgeting plan since I am generally pretty frugal. I try not to eat out more than a couple times a week, and when I do, it's always for social reasons rather than not feeling like cooking. I pack a lunch every day, which is super helpful. My friends and I try to have inexpensive fun like hanging out at someone's house way more often than we go out. I only make splurge purchases (Ex. plane tickets to go to Vanderbilt's homecoming) no more than once a month, usually more like a couple times a semester. ‘23

Keep taxes into account always. Some states have no state-income tax, some cities have 3 layers of taxes. Keep this in mind and budget post-tax while considering cost of rent, car (if you have that), costs of insurances (renter's, health, car, etc.), average groceries per month, and any consistent purchases or subscriptions. THEN, consider what you have left as disposable income for the month. ‘21

There's a great PBS series on financial literacy on YouTube called Two Cents! It breaks up financial advice into digestible videos of about eight minutes that are not too dry to watch. Two Cents teaches you everything you could realistically need to know as a recent university graduate, including budgeting, retirement and investing. '19

Graduate students on stipends are now able to contribute to an IRA. Set one up and contribute however much you can each month! '18

I've lived at home for the majority of my time after college (the last three years). It has allowed me to pay off a lot of debt AND save a ton of money, which will keep my opportunities wide open in the future. It is quite common to live with your parents in your 20s in other cultures, and it's a shame that it's not more normalized here. If you are lucky enough to have that option, I highly recommend it so that you can get ahead and be able to do whatever you dream of doing a couple of years down the line. '18

Ask for a summary of benefits when interviewing for jobs and prioritize jobs with benefits, including health insurance contribution and retirement options. '17

Live within your means. You'll have time later on to ball out (and actually afford it!). '17

I don't go out as much as I would like, and I work a FT and PT job. I use the library for books and movies (I've saved $500+ this year that I've put toward savings). I buy store brands. When I was WFH I saved money by not commuting and not having work socials to apply to emergency funds. At this time, with high cost of living as a single-income household, I do not make enough to save for retirement, however. '18

Start a retirement account as soon as you can. Ask your employer if they match contributions. '21

When I started making money that I could save, I kept enough to live off of and pay rent for a few months in my bank account, and continuously invested the rest in general funds that reflect the stock market. I won't touch that money until I need to make a big purchase in the distant future. '17

Max out a Roth IRA every year. Budget and spend less than what you could spend and do not change your lifestyle based upon an increase in income. '18

Contribute up to your employer match in your retirement account. It's the only guaranteed 100% return on your investment. ‘22

Always, always, use company match for your 401(k). It is free money. Budget and track what you spend so you know where your priorities are and the easiest ways to cut back if you need to. Invest early and often, but not based on the market or in unicorns. Stick with the market, slowly put money in monthly, and leave it alone. '21

If possible, set up an auto transfer that puts some of your paycheck into a savings account each time you get paid. This way you don't even have to think about it and don't feel tempted to use that money for extra purchases. Also track your finances for the first three months or so. Keep track of everything you spend money on for the first few months and then take some time to sit and evaluate and see what's working and where you might be spending more than you should. '18

Keep an emergency fund and never touch it. If you're spending too much, leave your credit cards at home before you go out. Just bring a certain set amount of cash. Force yourself to save. It can be tough, but it's great for you in the long run. '18

Spend mainly on necessities, to pay off debt (undergrad + dental school) in a timely manner. '21

I save, but I also like to treat myself, which I think is important. When I finish a quarter or hit a big milestone in my life, I try to be mindful and proud, so I honor that by splurging a little bit. '20

I pay my rent and place 20% of my income into my savings account. Things are a bit cheaper since I live with a roommate so once my major expenses are taken care of, I see what I have left over for the wants in life. ‘23

There is a lot of focus on saving money by cooking instead of eating out and canceling streaming services, but the biggest savings come from your biggest expenses, like your rent and transportation. Instead of living alone in a new build, consider having a roommate or living in a well-maintained older apartment. '20

In addition to matching retirement/stock/etc. contributions, employers often offer benefits for transportation or fitness goals. Explore those options, and don't leave any free money on the table. '18

Don't spend more than you make, and use any signing bonus to build a little savings up. When you are married, have "fun money" set aside for each of you to use (judgment free money you can each use for whatever you want). Even $10/month each will help avoid a lot of arguments. '19

Be honest with yourself and how much you spend. Sit down with a pen and pencil (or spreadsheet) and calculate how much you can spend versus how much you need to spend. I followed the 50/20/30 rule: spend 50% on necessities, spend 20% on extra luxuries and save 30% of your paycheck. '17

Stop online shopping!!!! In grad school you have less time to procrastinate, anyway; kill two birds with one stone. Save time and save money by not online shopping. '18

Keep a budget tracker (there are applications for this it you can do it manually) to see how much you are spending. It is helpful to set aside a certain amount for necessities and some personal spending for fun. ‘23

Start saving early.  ‘22

Put your savings into different buckets before you have a chance to miss it. For instance, I budget a bit toward a new car, long-term savings, travel and a rainy day fund each month. '17

I set a reasonable budget every time I go out to grab a meal with friends. I take public transit so I don't have car payments or have to pay for gas. '20

Don't waste money at fast food restaurants. Go to the grocery store and purchase products that will last a few days. '21

Make sure you set aside at least 10% of your income for savings. Try to amass enough so that in the event of an emergency you could get necessities and pay rent for at least six months. Get a logbook or make a spreadsheet and keep track of your expenditures so you have an idea as to how much you spend on average. This allows you to notice where you use most of your income and you can modify your spending habits accordingly. '19

Don't fall victim to the credit card monster! You will start getting applications for new cards every day, but it's important to resist temptation if you want to maintain good credit. Pick one card that suits your needs best, and stick with that. For example, I fly a lot, so my primary card is associated with an airline. '16

Ask in your job interview if the employer offers any loan repayments benefits. It's an amazing job perk! '16

Know your interest rates and pay off the highest interest loans first! The small differences in rates become magnified with compound interest. '19

Pay off your newest loans first, if you can! This will increase the average age of your accounts and boost your credit. Also be extremely careful if you do decide to pay off all of your loans, as all of these accounts will disappear and your credit score may drop. Unfortunately it's all a game, and the best we can do is manage it. Also avoid credit card debt at all costs! It's by far the worst kind of debt, and you should explore all possible other avenues before incurring it. '20

Change to an income-based repayment plan right away if you have a lot of student loans and are not in a high-paying job! It may take longer to pay off your loans, but it will make your life so much easier in the meantime. Don't let high loan payments control your life if you do not have the extra money. '18

Credit cards can be good as long as you can pay them back, and you pay them back on time. This is a means to build your credit score, which will have incredible effects and benefits for you later on. ‘21

Treat your credit card like a debit card for spending, and always pay the full balance when your statement comes out. '20

Pay off credit card debt and personal loans first. Those loans typically have higher interest rates and don't have any tax benefits, whereas student loans are typically considered "good" debt because they have lower interest rates and have more flexibility. '18

Avoid credit card debt when at all possible. If you need a credit card for an emergency, try to make sure you have the credit score you need to apply for one with a 0% APR intro offer so you have some time to pay it off before compound interest at a 20%+ APR comes home to roost. '21

Prioritize your high interest rate debts. This likely means paying off private student loans before federal loans. Don't be afraid to pay more than the monthly minimum, as you are saving yourself on future interest. Please, for the love of God, do not get into credit card debt. Only make purchases with the money you have available right now, while enjoying the newfound purchasing power you gain with full time employment. ‘22

If you have the financial ability to, start paying off your student loans once you're working even though there's the 6-month grace period. As for credit card debt, use your credit card for everything then pay it off immediately. ‘23

Refinance when possible. Set a specific chunk of income every month to work on paying these down. Don't beat yourself up over it; we all have periods where we owe money and it's OK. If it's a credit card, see if you can take on a lower interest loan to pay it off, and then don't spend on it until you do (or keep track of spending on it every month so you can get rewards; just make sure you're not spending more than what you can pay every month). '17

Don't take more than you need, and don't live off your credit cards. Credit cards can be great for earning rewards, but you have to use them within your budget or they can ruin your life. High interest debt is hard to pay off. '19

If you do not yet have a credit card, open one. You will need the credit history to eventually get approved for a mortgage. If you can afford it, pay off your credit card balance in full each month. If you have a lot of up-front moving expenses a couple of weeks before you receive your first paycheck, get a credit card with an introductory 0% APR for a few months, and pay it off before the interest kicks back in. Again, if you can afford it, buy your first car in cash, even if it has to be an older car. Not having car payments is huge. '20

Getting a good credit card is quite useful for building credit and earning rewards-but only if you pay it off on time. Debt is a slippery slope. '17

Pay off your debts as soon as possible. When making a big purchase, make sure you have enough money first. '20

With loans-take every opportunity to pay off the principal when you can. Credit cards are an important way to build credit, but if you have problems overspending, limit your credit card to only paying recurring bills (like utilities) and use cash or debit for other spending. You can then limit your credit spending to only necessities, and your physical cash will limit your spending elsewhere. '21

Even if your taxes are relatively simple, utilize a service like TurboTax or HRBlock. They guarantee to assist you if you are audited, which can relieve a lot of stress if it happens to you (I speak from experience). '16

If you don't understand taxes, read up on them. Especially if you are starting right after graduating, you will only have half a year's salary to pay taxes on at first, so take advantage of this lower tax bracket by contributing as much post-tax to your retirement accounts, as you'll probably be in the lowest bracket of your life. '17

Be mindful of every deduction you can possibly take. You write off your student loan interest and any tuition funds you spent that year as a full-time student. Don't be afraid to do your research and hire a tax person who knows better. '17

Make sure you have a solid emergency fund. You don't want to have sudden tax increases you're unprepared for and have to scramble. Having an emergency fund is insurance on random life stresses that happen. '18

Taxes hurt. Find every deduction possible. '19

Many graduate student stipends do not have taxes taken out of them up front, but they can still be considered taxable income. If you are in this situation, I would advise finding an estimate for what your income taxes should look like, and be sure to save up for that. '18

They may cost more than you expect, depending on where you live and the type of job you have. Try to budget for them, and what you don't spend on them, save. '18

Some states have no state-income tax, some cities have 3 layers of taxes. Be considerate of this and weigh this factor when deciding where you want to be as well. Ideally jobs in that area will account for these cost of living differences, but be sure that the salary offered actually will account for this. ’21

Typically your company will reserve a part of your paycheck to help you pay for taxes, but filing early is always helpful and reduces stress. TurboTax is great, but services like that do have a fee, so do your research and decide what is best for you. '18

There are tax incentives for all sorts of things. Make the most of them. You know better how to spend your money than the government. '21

If your job does a W2, you'll find taxes to be a bit backwards-you get a substantial tax return instead of owing anything out of pocket. Taxes can be largely invisible if you want them to be. '18

Double check your W2 and pay stubs to make sure all the information is correct. '20

Use retirement contributions and things like HSAs to reduce your tax obligation. As you start getting a higher income and accumulating more investments, the options available to you regarding taxes become more numerous. Then it becomes a mini-game that can save you a bunch of money! '17

Consider state income tax when you're deciding where to live. Tennessee, Texas and a few other states do not have state income tax, which reduces cost of living in those states. '20

A LOT of your weekly paycheck goes toward taxes. It will probably be a little shocking at first, and you never really get comfortable when you see the YTD amount that you have paid in taxes. '15

Your salary is not your salary. Don't start budgeting before you know how much you'll be paying in income tax. '16

Some states charge not only a state income tax, but a municipality income tax. This made choosing my postgrad home easy. '17

Most graduate students on stipends do NOT have taxes taken out of their stipends, which means that you will have to pay quarterly taxes. It's easy to do online, but make sure you know if this situation will apply to you. '18

When choosing a job, keep in mind that many national companies pay the same base salary regardless of office location. Nashville is cheaper than New York! ‘22

Allowing for greater withholdings is better than getting hit with a big tax bill each year. '20

Some states (even the cheap ones) have relatively high taxes, so factor that in when making your budget. ‘23

Keep receipts so that you have physical documentation of expenditures, charitable donations, etc. Also find someone who actually knows what they're doing unless you're super confident in your ability to do them well/on time. '19

It's always more than you expect! ‘23

If your company does a 401(k) match, make sure to max that out. Nobody ever wishes they had started saving for retirement later in life. Start now! '15

Start a Roth IRA immediately. If you did math in high school, you should know that someone who invests as a 20-year-old will retire at 65 with almost twice what someone who started at 30 will retire with. Just take 10% off the top and invest it. You'll be surprised with how little you miss it. '14

Take advantage of your company's 401(k) plan. Put as much as you can into it in your first few years. '17

The general rule of thumb is to save 15% of your salary for retirement, including 401(k)  matches from your company. Also look into keeping a Roth IRA account on the side. If you get an end-of-year bonus or money back from taxes, put that toward your retirement savings right away. It's bonus money that you won't miss. Have an emergency savings account that will last you at least six months with no income, and if your employer offers long-term and short-term disability programs, buy into those. You never know if you'll get sick or have to leave work to take care of a relative. '16