Saving Money After College

Just like Snoop Dogg, a lot of college grads have their mind on their money and their money on their mind. When you're dealing with rent, utilities, cell phones, cable, and paying for your own beer, it's easy to fall into the dangerous cycle of living paycheck to paycheck. But while surviving on starting salary is difficult, it’s not impossible. Moreover, there are plenty of ways to make sure you're pocketing a healthy cut of that income at the end of each month. Check out the tips below for some practical money-saving tactics.

1) Budget Like a Bastard

Yes, it’s nerdy. Yes, it’s time-consuming. And yes, creating a monthly budget is a tremendous help in assessing how much money you’ll have at the end of the day. It is shocking to fill out a worksheet that shows you just how your money disappears, but it helps to recognize the reality of your spending if you actually want to start saving. Check out this worksheet or, if you're really feeling frisky, create your own using Microsoft Excel. You can also try Mint.com or Wesabe.com, sites that help you track your bills and credit/debit card spending and make recommendations for how to cut costs.

2) Curb Cab Cravings

Cabs are mad convenient, but unless you are insanely wasted, lost, or late, they are rarely necessary. Taking the subway or bus on a regular basis can save hundreds, even thousands over the course of a year. Even better, commute for free by walking, biking, rollerblading, skateboarding, Segwaying...whatever. Not only will the cash stay in the pocket, but the fat will stay off the ass.

3) Brown Bag It

Remember the cootie-filled days of mommy-made lunch? It’s about time to reconnect with the past and save money for the future. If the average sandwich costs about $6 and drink around $2, that adds up to $8/day, or $40/week. In comparison, 1 1/4lbs of turkey (about $10) and 1/2lb of cheese (about $3.50) should be enough to make five sandwiches. That’s a savings of $26.50/week, or about $1,378/yr, enough to buy that 42” Sony flatscreen TV…if it fits into the budget you so diligently created, of course.

4) 401(k) So At 60 You Can Play

When seated in a cubicle at 20, it’s hard to think about laying on a beach in Cabo at 60. But it’s never too soon to think about planning for retirement. Having money automatically withheld from each paycheck and put into savings or retirement accounts ensures that money is actually put away. Enroll in a 401(k) program, especially if the company will match funds, or establish a Roth or traditional IRA.

5) Don’t Judge the Food by Its Cover

ShopRite’s Flakey Frosties probably taste just as grrrrreat as Kellogg’s Frosted Flakes. Kellogg’s version isn’t more expensive because it’s better, it’s more expensive because Kellogg has to pay Tony the Tiger . Save even more by comparison shopping—look at two or more brands of the same food to determine which has the best value. Since different brands package their food in different sizes, look at the unit price (usually ounces) to make comparisons.