How to Have a Great Financial Record after College?

Life as an individual truly starts only after college. Unfortunately, most people in their 20s are usually left to fend for themselves in terms of financial affairs. This can be extremely stressful, especially when considering the fact that your 20s are both the best years to invest time and money into building up your credit score, as well as the period when you can enjoy the most freedom.

Contrary to popular belief, organizing your life so that you can have complete financial freedom right after finishing college isn’t too difficult. While you do need to plan things thoroughly, there are a few principles that you can follow to not live under the stress of tomorrow while also building up your credit score for your 30s and 40s.

This having been said, keep in mind that all of the following 4 methods and principles should be used together to ensure success. Each of them will give you varying amounts of financial stability, however, only if you use them together will you be able to have a large degree of financial freedom.

Find ways to generate passive income

One of the best ways to gain a lot of financial freedom is to start generating passive income. There are hundreds of ways to generate revenue 24/7, even while you sleep. Whether you choose to start a vlog and to build a social media community that you can then use to make money or start farming cryptocurrency, making money even in your sleep isn’t impossible.

If vlogging, blogging, or creating content isn’t your thing, you can always start an online store that will allow you to earn without having to ever keep any sort of inventory. There are thousands of companies that enable you to custom-make clothes or decorative objects that you can then sell through your store. With a bit of research, you should be able to set up a system where every time you get an order, it gets redirected to the manufacturer that you are working with.

Lastly, there is the option of using what you’ve learned in college or something that you’re very good at to create a webinar or an online course. Depending on what platform you choose to use, the course can be automated so that it will require minimal effort on your part.

Avoid accumulating bad debt

When you’re in your 20s and you want to buy something, there aren’t many options to get the money for it, especially if you want to make a big purchase. You can either wait to raise the money that you need or you can borrow it from a bank.

Whenever possible, try to be patient. Taking out no credit check loans, or using too much credit can cause your credit score to drop. Furthermore, the more high-interest debt you have, the harder it will be to manage your earnings and you may reach a point where you will be working solely to make your monthly payments on time.

Take care of your financial history and work to build up your credit score

One of the most important things to do after college is to be patient, especially when it comes to making important financial decisions. In other words, always make sure that you only borrow what you know that you can pay, without falling behind on your payments. Always budget your finances so that you can repay the money that you borrow. This will allow you to have a clean financial record and build up your score.

This having been said, debt should not always be avoided. Instead, try to focus on good debt such as a mortgage on a house, or home equity loans. If you pay these on time, they can help show creditors that you have complete control over your financial affairs and they will be more inclined to lend you money in the future.

Try to avoid consumerism at all costs

This principle applies to both what kind of products you buy, as well as what you spend on them. Your 20s should be focused on enjoying life and earning money, not on paying off your debts. In other words, try to only buy what you need. Do not focus on getting gadgets or other electronics that are very expensive, unless they are actively helping you make more money.


Getting a job after college is a great feeling, especially if it pays well. However, this should not mean that you can go and spend everything that you make on extremely expensive products that may be just for show. Instead, use the money to invest in your future. Buy a house, buy the furniture that you like and make sure that you’ll be able to use it for the years to come.

Nobody is saying that you should not also get the things that you like, whether it’s a new iPhone or a next-gen laptop, but always keep in mind that they should be an investment. If you buy something expensive, make sure that it won’t affect your finances too much.

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