Take Control: Financial Advice for Job Seekers

by Peter Vogt

MonsterTRAK Career Coach

Life immediately after graduation can be tough from a financial standpoint with all the newfound expenses. And when you add the inevitable monetary costs associated with looking for your first real job, you can easily start feeling financially overwhelmed -- perhaps to the point where you're paralyzed by anxiety and unable to explore every job avenue possible.

Looking for a job is an activity that costs money, so it's critical for you to take command of your finances soon after graduating. Whatever you can do to better manage what you earn and spend will not only help you in your job search, especially when the entry-level market is as tight as it is, but it will also keep you relatively sane.

Here are some strategies you can use to get your financial house in order:

Develop a Basic Budget

You may not be the budgeting type, but whenever you're feeling somewhat financially unsettled, developing a straightforward budget will help you regain your financial balance. It will give you a handle on how much money is coming in and going out.

You need not be fancy with your budgeting process. If you want, employ a spreadsheet program like Microsoft Excel, or simply use the old paper-and-pencil method.

Whatever your approach, you need to complete three basic tasks:

• Add up how much money you earn, say, each month.
• Add up how much money you want or need to spend on various bills and purchases each month.
• Compare how much you earn with how much you want or need to spend. If the first number is larger, great -- you've got your expenses covered and then some. If the second number is larger, you'll have to find a way to make more money, spend less or both.

Look for Small Ways to Trim the Fat

It's amazing how much little things like daily cups of coffee, eating out several times a week or buying CDs can add up over the course of a week or month. When you're in tighten-your-belt mode, you can often cut back on these extras and save yourself considerable money.

Ask yourself these questions: Could you switch to a cell phone plan with fewer nationwide minutes and reclaim $20 a month? Could you get by without cable TV for a while? Could you live without those muffins you have every day with your cappuccino?

Revisit Your Living Arrangements

Do you rent an apartment or house all by yourself or with only one other person? If so, consider getting another roommate to help balance some of the costs.

You could also think about moving home for a while (if your family is up for it) so you can pay little or even no rent. Then use some of the money you save to cover your job search expenses.

Defer or Consolidate Your Student Loan Payments

Sometimes you can defer payment on your student loans. In other cases, you can combine, or consolidate, multiple loan payments so you end up with one smaller payment each month. Be sure to check out your loan repayment options with your lenders.

Be Careful with Your Credit Cards

Credit cards can be trouble. It's easy to fall into the trap of using one or more credit cards to buy things you figure you'll pay for once you've landed a job.

There are times during your entry-level job search when using your credit card is a smart, calculated risk. For example, if the only way you can buy interview clothes is to charge, then it's probably a good investment. But in many cases, the things you purchase can be stuff you want rather than need. So limit your credit card use and try to pay off any balances you have to stem monthly finance charges.

None of these strategies will completely resolve your financial difficulties in the weeks and months after graduation by themselves. But they will help you regain some control over your situation, and that alone will give your job search a much better chance of ending in success.

Related Resources

• Dollars and Sense for College Students by Ellen Braitman

• Money Management for College Students by Larry Burkett

• Young Money: A financial publication aimed at 17 to 24-year-olds

• National Foundation for Credit Counseling: A nonprofit organization that helps people with credit-related concerns

© 2008 MonsterTRAK