There has been a lot of grim news for the Class of 2011. Unemployment is high, job salaries are down, and college loans loom large. But all is not lost. Graduates can be successful in this challenging economy if they set clear goals, create an effective plan, and spend their money wisely.
The road to success starts with a written plan that identifies exactly what you want and how you’re going to get it. An historic study of Harvard graduates revealed that the 3% of graduates that had written goals by the time they graduated went on to make more money than the other 97% combined. So, start by identifying your goals. What do you want? Do you want a job in the big city? To have an apartment? To start your own business? To save 20% of what you make? To pay off student loans before you turn 30?
Then, create a plan to achieve your goals. A detailed written plan serves as a map of what you will do and how you will do it, including how you intend to make the most out of your money. You know, it really isn’t how much you make, but what you do with it that counts. If you’d like more specific guidance and worksheets for creating your plan, they can be found in my money book.
When it comes to making a plan, spending wisely, and beginning to build real financial success, a common pitfall is to want to do it “later.” Do not put it off. Your most powerful ally, and also potentially the most powerful enemy, is time. Start now and be disciplined about sticking to your plan. You will create good financial habits that will contribute to a lifetime of success.
It is a challenging time to be a graduate, but your future can be very bright. Dream big, create your financial plan, and spend wisely, and you’ll find that nothing will stand between you and the life you pursue.