PHILADELPHIA, PA, August 19, 2013 /24-7PressRelease/
-- Mike Kabarec
is the trusted leader of Kabarec Financial Advisors, which was founded in 1982. Now, Kabarec is issuing comment on a new article from The Huffington Post that aims to offer financial tips for recent grads. Kabarec believes that all new graduates should have a strong understanding about finances in order to start their futures off on the right foot. This includes how to create a budget and save money.
Though it may seem fairly obvious, the concept of making more than is spent each month is an important idea for all recent graduates to abide by. Even though the individual is no longer a student, it is important that he or she does not try to adopt the lifestyle of an individual who has been earning money for years and years. Saving during a person's twenties helps them to put a significant amount of money away for later purchases, including buying a home. Even if an individual finds a full-time job right away, it is important that he or she lives modestly. This includes renting an inexpensive apartment and avoiding major shopping sprees and expensive meals.
Regardless of age, an individual should set up an Emergency Fund. The money in this account can be used on unexpected medical bills, car repairs, and flights. In the event that an unexpected situation should occur, this money allows the person to pay for the necessary expenses without maxing out a credit card. As a general rule, it is advisable to have three to six months of expenses built up in this fund, though some people feel more comfortable with a full year's worth of expenses when possible.
Mike Kabarec notes, "Many recent graduates get excited because they are finally earning a salary. They want to take this money and buy themselves something with it. While it is fine to buy the essentials, a person should avoid blowing each paycheck on clothes, electronics and other items. It is also advisable to keep expenses as low as possible. This means living in a reasonable apartment and cooking meals at home instead of eating out three times a day."
For those who have accumulated student loans over their time in college, it is essential to begin paying off these debts as soon as possible before they start accumulating interest. Many students have a grace period between graduation and when interest starts to accrue. It is important that they make a large a dent as possible in these loans before they become even more expensive due to high interest rates. A person may find that a spreadsheet or other form of written plan is helpful as they are working toward paying off their education-related debts.
"A recent graduate who is making a salary should begin to think about planning for their retirement using a Roth IRA. This is a retirement account that is appropriate for those who are new to the work force. Though it may seem silly to plan for a retirement now, an individual who gets an early start will be able to put away significantly more money than those who start to plan for their retirement in their 40s. It is advisable to consult with a financial professional about the best way to start saving up for retirement," explains Mike Kabarec.
is the president of Kabarec Financial Advisors, which he created in 1982. The group specializes in wealth advisement, especially investment management, tax preparation, and retirement planning. Kabarec believes that a strong understanding of finances is essential for any professional, regardless of the field they are in. He states that understanding how money works helps a person to save and plan a financially sound future for him or herself.