If you’re a recent alum, saving money on your entry-level salary might be challenging, especially if you have student loans to pay off. While the responsibility of financial independence may seem intimidating, it doesn’t have to be. By following the guide to personal banking below, you’ll practice making smart choices to manage your finances. 

A Guide to Personal Banking for New Grads

1. Prioritize Student Loans

With one in six college graduates in debt exceeding their income, student loan debt is at record highs. Your debt may be large and scary, but don’t fear – there are ways to manage it. If you’re able, pay more than the minimum due on your loans to limit the amount of interest you’ll accrue. Establish an aggressive repayment plan to tackle student loans. The faster you repay the loans, the sooner you can start saving for a down payment on a car or home.

2. Save Your Money

Put 10 to 20% of your monthly earnings into a savings account to help establish a reserve for emergency car repairs, job loss, a down payment on a house, or any kind of life event where you’ll need cash. Once you create a personal banking account, make arrangements to have a certain percentage of your income deducted during each pay period and deposited directly into your savings account.

3. Create a Budget    

Budgets may not be fun, but they’re essential to money management. Once you’ve set a goal – whether it’s paying off a chunk of debt or stashing three months’ worth of expenses away – evaluate how much you’re currently spending. Use this information to set a monthly budget that includes nonnegotiable costs, like rent, utilities, debt payments, and IRA contributions, as well as the nonessentials. Trim unnecessary expenses – for example, make coffee at home instead of buying from a shop. Stick to your budget by setting a reminder on your phone to update and review it. While some people like to use spreadsheets for their budget, online banking apps are also a convenient way to keep track of expenses and account balances.

When you’re ready to sign up for personal banking, trust the professional team at Magnolia Bank in Hodgenville, KY. They’ll offer you the important banking tools and attentive customer service you need to establish credit, grow your wealth, and move ahead to a future of opportunity. For more information about opening a checking account or mobile banking amenities, call their office at (270) 358-3183 or visit them online.