As a college graduate in recent years, I have some advice for those who have just graduated and are starting their “real lives.” Personally, I found it somewhat stressful to join the “real world” and take on actual responsibilities. I had to move to a city that was 300 miles away from my home town, pay bills that I never had before, learn about benefits at my job, feed and take care of myself, and develop a work-life balance. I am sure many young professionals can relate as they look back on their college days and realize how easy they had it and how little responsibilities they had compared to the ones they had now. Here are some of my thoughts on the transition from college to the real world:

1. Live a frugal life – Even though you are no longer a college student, live like one for at least one year. When you first exit school, you are probably not very financially stable and have a lot of student debt. Instead of living in a studio, find a roommate and live in a cheaper 2 bedroom or better yet, live in a large house and share the rent with many roommates. Instead of dining out multiple times a week, cook at home. Go out one less night of the week (you’ll find that it gets harder to go out as much as you used to as recovery time increases) and look for deals on everything. Understand that you are not yet financially stable and should make every effort to save. You were used to this lifestyle in college; why not extend that another year?

I live currently live with four of my friends from college. We all stayed in the same city and found a very inexpensive house to live in. Not only has it provided me with a way to ease into post-college life, but it has allowed me to save much more each month.

2. Be organized – This is even something I need to work on. My roommate and one of my best friends from college said I operate in organized chaos – meaning it appears that everything is in disarray, but I still know where everything is. I am going to work on making sure I know where everything is in a neat and tidy way.

The more organized you are, the easier your life will be. Make sure you have a filing cabinet or box to put all your important bills, records, and documents. Keep track of your tax information throughout the year so tax season is just a breeze and not a dreaded chore. Document what bills need to be paid at what time so you do not forget or miss any payments. I keep an excel file of all my bills that I use each month to track which bills I pay and how much I have paid.

3. Learn to be financially responsible and savvy – Educate yourself on personal finance. There are so many people out there who wish they had known more about personal finance at a younger age. There is so much you can do by empowering yourself with this knowledge. Read publications and different personal finance blogs (like this one =P) and educate yourself on how to save money, how to invest, how to manage your finances, and etc. The more your know early on, the easier your financial life will be in later years.

4. Start saving for retirement early – I have yet to post about the time value of money or the power of compounding, but these are critical concepts. Basically, the earlier you start investing the greater the potential you have for your retirement savings. Max out your 401k if possible. Start a Roth IRA or traditional IRA soon (I have not been able to do this yet, but am going to in the next few months).

5. Excel at work – If you have a job right now, it is your greatest asset. You don’t own a house, you don’t have a huge savings, and you don’t have a retirement nest egg. Put all your effort into excelling at work to get to a promotion or a raise or just to develop your skills. The more you learn and the more responsibility you have, the more valuable you are to a company. Eventually, this all equates to more earning potential and a better financial position.

6. Pursue your hobbies – Don’t forget to enjoy yourself. Do the things you enjoy. Who knows, maybe one day, you can make some money off of these hobbies. In the mean time, have fun doing those hobbies and pursue what is important to you. Financial stability is important, but so are your interests and happiness.