5 Smart Money Moves for Recent College Grads
Congrats, Class of 2025! Graduating college is a major milestone, and entering the “real world” is both exciting and overwhelming. Between starting a new job, finding a place to live, and possibly moving to a new city, personal finances might not be your top priority — but they should be on your radar.
At Sherman Wealth, we work with young professionals every day who are trying to figure out how to start their financial journey on the right foot. And the good news? You don’t need a finance degree or a six-figure salary to set yourself up for success — just financial education and a solid plan.
Your salary isn’t what hits your bank account — taxes, health insurance, and retirement contributions are all taken out first. Take time to review your first paycheck and understand:
- What’s being deducted
- Your take-home pay
- Whether you’re maximizing any employer benefits, such as 401(K) match, HSA funding, and more
Tip: Use HR’s open enrollment period to your advantage and ask questions early!
This is a great time to dig into your pay stub and understand exactly where your money is going. Knowing how much you’re really working with each month will help you make smarter decisions about everything from rent to discretionary weekend spending.
With understanding your income should come budgeting. You don’t need a complicated spreadsheet — just a simple plan that aligns with your lifestyle to allow for savings. Start with something like the 50/30/20 rule:
- 50% needs (rent, groceries, bills)
- 30% wants (fun, dining out)
- 20% savings and/or debt repayment
Think about automating your finances, for example, automating a specific amount each pay period from your paycheck to a savings or investment account, similar to the 401(K).
Whether it’s travel, a car, or an apartment deposit, short-term goals deserve their own savings buckets. We call this the “bucket strategy”. Consider opening a high-yield savings account for each goal and automate monthly transfers. Even if you’re not ready to invest yet, building this habit will make it easier to grow wealth down the road. Small automatic transfers into a savings account can build momentum. And if your job offers a 401(k) or other retirement plan, contributing just a few percent of your salary (especially if there’s a match) can make a big difference over time.
Student loans can feel daunting — but the worst thing you can do is ignore them. Make sure you know your loan types, balances, interest rates, and repayment start dates. Consider using your grace period to set up auto-pay, explore income-based repayment options, or refinance if it makes sense for your situation.
Finally, consider meeting with a financial advisor. You don’t need to have a large portfolio or a high income to benefit from professional guidance. At Sherman Wealth, we specialize in working with young professionals and recent graduates to create personalized financial plans that align with their goals and priorities. We’ll walk you through everything from building credit and managing debt to planning for future milestones.
Graduating college is a major life transition, and it’s natural to have questions about what comes next financially. Developing financial literacy at this stage empowers you to make smarter, more informed decisions that can positively impact every aspect of your life — from managing debt to investing for the future. Starting smart with your money now also allows you to take advantage of the power of compound interest, giving your savings more time to grow and setting the stage for long-term wealth building. The earlier you begin, the more flexibility and opportunity you’ll have down the road. We’re here to help you build that foundation with confidence and clarity. Schedule your complimentary introductory call here to learn how we can help guide you through this next chapter. Have questions? Email us anytime at info@shermanwealth.com