Comments on: 4 Important Tips for Graduates Beginning a First Real Full-Time Job

By: Dan Holt: Laid Off

Dan Holt: Laid Off — Wed, 01 Jul 2009 06:32:20 +0000

Good article. I would add one more tip.

5. Don’t expect to be there long. According to the BLS, for people born between 1957 and 1964, “younger baby boomers held an average of 10.8 jobs from ages 18 to 42.” Graduating college at age 22 and expecting to retire at age 67, college graduates should expect to change jobs every 4 years or so.

Whether it’s due to a layoff, a better job offer, or a change in career goals, we should all rid ourselves of the notion that we should be loyal to any one company. After all, the company is not loyal to us.

By: Jason

Jason — Tue, 30 Jun 2009 18:36:45 +0000

Enrolling in your company’s 401(k) is good general advice, but doing it as soon as you’re eligible is not necessarily the best thing to do. You should determine the best time to join based on your priorities and level of discipline with money. If you’re not disciplined enough to join when you’ve worked down your list of priorities and you think you’ll eventually be spending the money instead, then by all means, join as soon as possible. You’ll never miss the extra net income.

In my case, I waited about 9 months and enrolled during our plan’s open enrollment period. In that time, I paid down all of my credit card balances that I had accrued during college, reduced my debt-to-income ratio, slashed my credit-utilization ratio, and boosted my credit score. With the higher credit score I was able to open new credit accounts, with APRs significantly lower than my only card at graduation. By the time I bought my house, about 3 years after graduation, I qualified for the lowest rate possible at the time. A friend bought a house at the same time, but wound up with an interest rate 1% higher, which will cost him thousands over the life of the mortgage. The opportunity cost for waiting 9 months was about $1,000 from employer matching (actually only about $600 since I left before I was fully vested) plus tax.

My wife on the other hand is the complete opposite. She cannot manage her credit and has had to cancel all of her accounts but one card. She did not have a retirement savings account until she was automatically enrolled in the 401(k) at her most recent job. She spends every dollar she receives in her paycheck (half of it goes to paying down previous debt). The 401(k) contribution never makes into her hands, and she doesn’t miss it one bit.

By: Mike L

Mike L — Tue, 30 Jun 2009 13:04:56 +0000

Flexo – I do agree that contributing to a 401k is a great, especially if they match. But, in your opinion, if the company doesn’t have a match policy, is it still worth it to invest in a 401k when new graduates may need the extra income in their weekly paycheck? I understand the tax benefits, but I still think there should be an order of priorities (paying off high interest debts, saving for a house, getting used to new expenses, etc).

PS – I have been coming here for years and you provide one of the best blogs out there! It has really helped me to dramatically change my own financial situation and plan for the future, so thank you!

By: Miranda

Miranda — Tue, 30 Jun 2009 12:25:34 +0000

I like that #3 and #4 address what to do once you start your job — prepare for the future! Starting off by opening retirement accounts right off the bat are a good way to maximize your returns.

By: MLR

MLR — Tue, 30 Jun 2009 05:06:20 +0000

In re: to the negotiation tip… absolutely!

Their may be an excess of college grads out there, but not all college grads are created equal.

Companies are still willing to pay a premium for the right candidate.