How To Plan Your First Six Months After Graduation

You have dreamed of independence since you were 10 years old, and here you are, fresh out of college, after graduation, with $30,000 plus in debt in your name, big ideas, and not enough cash to fund them.

It might not sound glamorous, but it’s the perfect moment to get a pen and paper and design a plan. At least a short-term one, as you make the transition into real adulthood, with perks and bills.

We focus on the first six months, as this is the general timeframe during which you are typically excused from repaying your student loans (except for Perkins, which has a 9-month grace period).

Use this period to network, secure the right job, and arrange your living arrangements. It’s the moment to create systems that will free your time and keep you on track and accountable.

Table of Contents

How To Plan Your First Six Months After Graduation

Let’s explore some points.

1. Get your papers right after graduation

To apply for jobs, credit cards, insurance, or a retirement fund, you will need copies of your identity card, social security card, diplomas, and more. Ensure you have a substantial reserve of copies and store the original in a safe location.

Additionally, during this time, consider revising your resume and CV to reflect your qualifications, knowledge, and experience accurately.

If you have no prior work experience, include any relevant internships and volunteer experiences. Prepare several versions of both your resume and CV, customizing them for different jobs you want to apply to or different companies. Don’t underestimate the amount of work that goes into preparing a CV that gets you to the interview stage.

2. Work towards getting a (better) job

Getting a job should be your top priority during this period. After completing all the steps listed in this small tutorial, you will also have a rough estimate of what your starting salary should be to accommodate all expenses and have a little left for life’s little pleasures, like the avocado toast that got millennials a bad reputation.

Once you have a solid CV and resume pair, it’s time to go digital and create a keyword-focused LinkedIn profile. Put in your title or description the skills or words you might find in your dream job ad. Don’t just rely on online applications, as it’s hard to stand out at this stage with little or no experience.

Use this slow time to establish business connections, network, join professional associations, and make yourself useful or known in your field. Most employers tend to hire people who are recommended by someone else, rather than just browsing through a large number of resumes.

3. Get your accounts in order

The starter pack for any responsible adult includes a checking account, a savings account, and a low-interest credit card. Be savvy about these and try to shop around as much as possible for the best interest and other bonuses, such as flying miles or other discounts of your choice.

Use the credit card wisely and look at it as a FICO score-building tool, not a free pass to your local mall. The key is to demonstrate to credit bureaus that you can manage finances maturely and diligently, and that they can trust you with a mortgage.

You can use the card to automate payments for utilities and other essential living expenses, and be sure to connect it to the checking account where you receive your pay. The bright tip here is to allow a few days between your salary payment day and paying your credit card debt to avoid accumulating debt.

4. Create a student loan repayment schedule

This is your only financial certainty at this point, and although it appears to be a substantial debt, it is actually just about one-third of what you will have to pay for your home. The key is to start small, but be consistent about it.

Think about the amount you can repay each month without exception. Of course, you have the refinancing or consolidation options, but avoid making the sentence longer than necessary.

5. Design a budget

Remember the KISS (keep it simple, stupid) principle when designing your budget. Only include broad categories and round your estimates to the nearest $5,0, for example. Start with a backbone made up of three bins: fixed costs (rent, utilities, food, credit card), investment (401(k), Roth IRA), and savings (dreams, down payments).

Whatever remains is your guilt-free bonus. Multiply the sum of these three bins by 1.2, and this will give you the estimate for the minimum wage you can accept. It is by no means your dream salary, but it will get you through the month, paycheck to paycheck.

As your income rises gradually, you should set aside the necessary emergency funds for at least 3-6 months; however, this is not a priority at this time.

6. Think about insurance

When you live on a tight budget, an accident or misfortune can be a real setback. Health coverage should be the first item on your list, since paying hospital bills out of pocket is a recipe for disaster. Next, it goes without saying that if you are a driver, you should get your car insured.

A lesser-known insurance is the renter’s package. Consider the value of all your possessions and their replacement costs. For the equivalent of 2-3 coffees/month, you can protect those. Just write these under fixed costs.

7. Think about the future after graduation

It is an exciting and stressful time. You have numerous opportunities and considerable uncertainty, which can feel overwhelming. To recap, here is a loose schedule of what you should do in your first six months after graduation:

Get your papers in order, write your CV, apply for jobs, make business connections, and create a rough estimate for your budget.
Attend job interviews, expand your professional network, and explore financial options, including credit cards, accounts, and insurance.
Open at least the basic accounts in your name.
Get hired and design a repayment schedule for your student loans.
Start a 401(k) or other retirement savings account and consider getting insurance and health coverage.
Re-assess your estimates and adjust accordingly.

How far along this journey after graduation are you so far? Do you have a tip you would like to share?

How To Plan Your First Six Months After Graduation

How To Plan Your First Six Months After Graduation