Financial Know-How

Cost of Living and Responsibilities

Five years from now, maybe Ten, you’ll probably wish you’d started saving some money.

Unfortunately by then, you could easily have a much higher cost of living: a mortgage payment, kids, car payments, vacations, and whatever else you think might be a part of your future. With all those responsibilities – saving money is going to be a tough task.

So why not start now?

Let’s look at a few quick facts:

Right now, you probably have very few responsibilities. You’re probably a single, childless individual who only has a few financial requirements.

Think about this for a minute, and then savor this fact. In the next ten years you very easily could find yourself with all those responsibilities listed above - but right now you’re likely blissfully unattached to any partner, dependent, or obligations. Sure you might not make much for a few years as you break into the industry or field you’re pursuing, but you can make an impact on your future with even a small bit of saving and investing now, thanks to the time value of money.

Since you don’t have many requirements right now, why don’t you make your future a requirement? Look at some of the Savings and Investment options and consider steps you can take after you graduate, or now, to take care of yourself.

Here’s another fact you may not be considering: You know how to live the cheap life. Right now, you probably have some experience with Top Ramen, roommates, and taking the bus. Five years from now you’ll probably be “too grown up” to eat like a budget gourmet, split your expenses, and utilize public transportation; and you’ll probably have to spend a lot of money each month to pay for all that “personal growth.”

So for the first few years after graduation, what would be so bad about living the college-life as an “adult”? It should save you money, giving you the ability to pay down debt, build a nest-egg, follow your dreams, or just live within your budget.

Sure you’ll want to take steps to advance your career, foster mature relationships, and build your future, but you’ll find that by hanging on to some of the cost-effective parts of the college life, and saving or investing a little money, you’ll be setting yourself up for a much easier road in the future.