Living on your own

Rent, utilities, student loan payments, medical insurance, gas, food, clothing and personal care expenses—these are all the costs of living on your own before and after graduation.

“You have to be very organized about all of your expenses,” said Aurora Gonzalez, who graduated with a bachelor’s degree in accounting in 2013 from legacy institution UT Brownsville and a master’s degree in business administration in 2016 from UTRGV.

Gonzalez, who works as a paralegal for the Internal Revenue Service in Austin, said she develops her budget weekly by pay period and she calculates her income and anticipated expenses.

The Texas A&M AgriLife Extension website offers articles to help people with money management.

First, start to separate your expenses. Fixed expenses include mortgage payments or rent, utilities, medical or life insurance and student loan payments. Flexible expenses include gas, food, clothing and personal care spending, according to the website.

“You always want to have cash on hand as … [an] emergency fund for unexpected things that can happen along the way, … unexpected job loss, helping a family member, etc.,” said Terrance Martin, an assistant professor in the UTRGV Economics and Finance department.

If in financial difficulties, try to see if there are areas where cuts can be made. For example, less expensive brands or items can be used instead, according to the Texas A&M AgriLife Extension website.

“Hiding financial difficulties from the rest of the family for long is nearly impossible, and it’s not emotionally healthy,” the website states. “Financial decisions affect the whole family.”

Many graduating seniors are in the process of filing an income tax return to receive a refund.

The Texas A&M AgriLife Extension shares some helpful tips for uses of a tax refund. Pay the bills you have fallen behind on, save for emergency funds or occasional expenses, save for special purchases and invest in yourself to improve your job skills.

No matter your financial needs, always be a smart shopper and focus on needs, not wants, according to the website.

Keep services such as utilities, phone, transportation, insurance, etc., in mind and when shopping, remember the necessities and luxuries, the website states.

“Evaluate what’s the need, not the want. What do I need to take care of?” Martin said.

When obtaining student loans, students should know how much it is going to cost them. Obtain the best lending option with the best interest rates, Martin said.

He said students have six months to start paying the loans after they graduate and if they do not get a job within that time frame, they need to start putting money aside.

“You don’t want a situation where you have a certain job, only paying you a certain amount of money and you go stay at an apartment that takes the bulk of your salary as well as if you have a brand-new car payment and you’re living your life neglecting your student loans.”

The website states that no matter how bad the situation might be, do not ignore the bills and creditors.

Graduates should save money for things such as a new car, a home, children and retirement. It all starts with creating a budget or spending plan, calculating your income, expenses and how much you can save, according to the website.

When graduates start their employment, they should make sure their employer offers a retirement plan and take advantage of all the benefits it offers, such as short-term and long-term disability insurance, Martin said.

For more information on money management or any other topics, visit agrilifeextension.tamu.edu.