LUBBOCK, Texas -
College seniors are preparing to graduate into adulthood, where they will hopefully be able to upgrade from Ramen Noodle meals to a few steak dinners. They're ready to turn the page to a new era in their life.
"I feel excited, but I don't think it's going to really hit me until grades are posted and everything is for sure," said Gabriela Mena a student at Texas Tech.
Grades will soon become the least of Mena's worries and many others receiving their degrees.
"As they move into what we would call quote "the real world" some things that they need too look at this is probably the first time they're entering the job market where they're becoming independent, they're actually making more than minimum wage," financial adviser Barry Malone said.
Certified Financial Planner Barry Malone recommends establishing a budget before going overboard with that new income.
"We kind of like the 50-30-20 rule," Malone said. "So that 50 percent of your income whatever your new income is, you look at it and that's what you want to use to pay your rent, pay your utilities, buy your groceries, pay your basic living expenses."
The 30 percent is for things you want to do or buy and need to save up for. The next 20 percent Malone said needs to sit in a savings account or rainy day fund that you don't touch other than to pay off things like your student loan debt. Something Mena is already keeping in mind.
"Still keep that college mentality for the first two or three years to get a big dent on my loans and then start to enjoy life a little more," Mena said.
At their new job grads also need to keep an eye out for 401(k) retirement plans.
"Now 401(k) is where the company is going to match a certain portion of your income that you will save and what you want to do is move that maximum match as soon as you possibly can because the employer will match dollar for dollar to that percentage of income," Malone said. "If you're not saving up that money you're giving away that money because for every dollar you put in you're getting a dollar free."
It's not all tight budgeting though, Malone said it's OK to give yourself a prize here and there, just don't over do it.
"We all actually like to live beyond our means and when we've been living on a restrictive diet of Ramen noodles and cheap food of the macaroni and cheese that comes in powder form and now all of a sudden you can go to a restaurant and buy steak it's really hard to say, 'I'm going to deprive myself. I've been rewarded.' Well reward yourself. That's why we say budget to allow those things," Malone said.
