Hiatt Career Center

A budget tracks your expenses and helps you understand where your money goes. It can help you balance your needs and wants and ultimately put you on a path to financial stability. The steps in creating a budget include:

Step 1: Write down your financial goals. Goals should include:

• an outcome that can be measured
• relevancy to your specific circumstances and time in your life
• a defined time frame to be achieved

Step 2: Write down your income

Include all sources of money including salary; your parents; student loan disbursements; savings account; and gifts. Use specific dollar amounts, don’t estimate unless you have to. Add up the total for one month.

Hint: if your student loan disbursement is expected to last one semester, divide the total amount by 4 to get a monthly amount.

Step 3: Create a spreadsheet

Use apps like Mint Budgeting and You Need a Budget or use a budget worksheet you can find online (or simplify with Google Sheets or Excel). Write down where the money is spent and track all expenditures you make to the penny, including all cash. Keep track of every expense as you make it to add to your budget spreadsheet.  

Use categories to group your expenses by type (categories can include rent, utilities, groceries, dining out, car maintenance, etc.). Indicate right on the budget whether the expense is a want or need.

• Use as many categories as you can successfully manage
• Savings is an expense
• Miscellaneous is not a category

Step 4: Total your expenses monthly and yearly

Add up your expenses at the end of every month and again at the end of the year and compare your total income to your total expenses. You'll be able to identify what adjustments you need to make when it comes to spending. 

• If you have money left over, can be it used towards your current financial goal or towards a new goal?
• If you are spending more than you are earning, what can you reduce or cut from your expenses? How can tracking your needs and wants help you decide where to spend less money in your budget?
• What cuts or reductions can you realistically live with?

Nothing welcomes you to the real world more than getting your first student loan repayment notice. If you're like most students, you probably are graduating when some student debt and will have to pay it back. There are four types of student loans and then there are private loans. Review the loan types that you have and how you can manage them.

Federal Loans
Direct Subsidized, Direct Unsubsidized, Direct PLUS, and Federal Perkins are the four major federal loan types. Review which ones you have and their policies regarding payment. 

• You will complete exit counseling prior to graduation from Brandeis. The Brandeis Student Loans page has helpful links and information to get you started on the process.
• Repayment begins six months after graduation. Payments go directly to the loan service, not Brandeis.
• Your loans are handled by one of 10 servicers (collectors). These include: Nelnet, Great Lakes, Navient, FedLoan Servicing, MOHELA, HESC/EdFinancial, CornerStone, Granite State, OSLA.
• Contact the loan organization directly to discuss repayment options and planning. Review your Federal loan summary at www.nslds.ed.gov

Federal Perkins Loans:

• You will complete exit counseling prior to graduation from Brandeis.
• Your loans are handled by Heartland ECSI OR Brandeis and payment will be directed to either organization. Contact them directly to discuss your plan.
• Repayment begins six months after graduation

Private Loans
Private loans can vary dramatically in terms, from their interest rates to repayment schedules. Repayment of loans will go directly to the lender. It is up to you to work directly with them regarding payment and schedule of payments. 

Along with keeping a budget, balancing a checkbook, managing a credit card and "doing your taxes" are also essential. 

Bills

Each time you write a check, pay a bill online, or use your debit card, record it someplace. At the end of each month, review your spending against your monthly statement to ensure your spending is balanced. This is also a good fact-checker in case something comes out of your account that you were not aware of. Although checks are less common than they once were, they are still widely used. Here is a quick tutorial on how to fill one out.

Credit Cards

There are several benefits in having a credit card but it's important that you do your research to find the one that is right for you, your budget and spending needs. Having a credit card can help you build credit, which you'll need if you want to apply for a loan or a mortgage in the future. Build good credit by using the card to make a small number of purchases each month, knowing you have money budgeted to pay it back each month. Your credit will help build your credit score, which you can often check through your card's online account or on sites like Credit Karma or Experian.

Taxes

In most work situations, federal, state, and local income taxes will be taken out of your income throughout the year. After the closing of the year, your employer will send you a W-2 which states how much you income you made in that year and what taxes were withheld. Before the federal deadline, you will need to file your taxes with the government. For assistance, there are tools online from the IRS and sites like H&R Block and TurboTax. You can also use paycheck calculators and online tools to estimate how much you should withhold from each paycheck and how much to expect to pay or be refunded once you file.

It's always important to have a solid understanding of what the salary standard is for your desired job type. You never know what an employer may present to you so having an idea will put you in a good position to negotiate. 

Research similar positions in your geographic area in order to compare your salary offer. Keep in mind that these are average figures and variations may be linked to the type of industry, experience or education level. Some helpful resources include:

• ETC Salary Calculator  — The Educate to Career (ETC) salary calculator lets you input your education and years of experience to explore salary ranges

• Glassdoor — Explore reported salaries at companies by job title

• Vault — Browse compensation information and salary tips by field and company

• Salary Calculator  - Determine your net pay after taxes

Once you've done thorough research, watch our short video showcasing a scenario you might find yourself in if the employer comes in at a lower offer than what our you're looking for.

Negotiation is a normal part of the hiring process and you should always ask if there is room to negotiate your offer. Do the research and be prepared to present a reasonable counter-offer if presented with the opportunity. Remember, you don't get what you don't ask for. Some helpful tips include:

• You are in the best position to negotiate when you know the value of your skills as well as comparable salary and benefits for your position.

• Research salaries and benefits in your industry.

• Review what makes you the most desirable candidate: specialized technical skill or expertise, your educational background, your past experience or an advanced degree.

• When the salary is not negotiable, you can ask about signing bonuses, moving expense reimbursements or other one-time expenses.

Negotiate in good faith. If you have a competing offer, you can mention it but avoid exaggeration, fabrication or playing one offer off another for an extended time.

While it doesn't happen often, it's important to remember that if you propose a different salary the company is not obligated to stand by their original offer and the offer of employment could be rescinded.

As a new graduate, health insurance may be something completely new to you as most are either on plans with family members or with the University. In most cases, depending on where you live and your coverage, you can stay on their parents' plan until the age of 26. 

Health insurance through an employer could include medical, dental and vision and often provides cheaper pre-tax rates than you can find if you purchased health insurance on your own. There are a number of questions you should ask your employer about health coverage as you weigh your offer.

Monster suggests asking these eight health insurance questions:

1. Is there a waiting period for coverage?
   
2. Is my family covered, and if not, what will that cost me?
3. Do employees have the option to not use the company’s health care?
4. Can I take a look at the specific coverages of the health plan?
5. Does your company offer tax-advantage reimbursement plans?
6. Are there services to help me understand my benefits/bills I receive to help reduce costs?
7. Does your company offer rewards programs?
8. How large is the provider network offered by the plan?

Review their article for more information, but always remember that salary isn’t the only thing that matters!

Retirement plans allow you to put a percentage of your gross (pre-tax) income into a trust fund or other qualified investment fund. In many cases, employers will match your contribution up to a certain percentage - this is "free" money that can add to your overall compensation package. Typically, you can take your plan with you after leaving your employer.

One of the greatest benefits of being a new grad and new to the job market is, time! You have a lot of years ahead of you to plan and invest in your retirement. The world of investment may be brand new and intimidating so here are some tips to get you started:

• Start early: Inquire about when you can sign up for a retirement plan with your employer (some have waiting periods before employees can join). If you are not ready to contribute right away, plan to put some money aside as a savings or "rainy day fund" to go towards other expenses, like your loans, so you will get in the habit of putting money away.
• Take advantage of the match: Many companies offer to match your contributions in a 401(k) plan which is highly recommended that you take advantage of. Your employer will inform you what percentage they will match. It’s worthwhile to start your own contribution even if you’re not eligible for employer matching right away.
• Do your research: Large-cap stocks, international stocks, bonds, oh my! There's a lot that you can invest your money into and it's important to understand what they are. Keep an eye on the market as that drives the success of how well your investments are doing.
• Ask a professional: Many 401(k) plans offer some form of managed account service or third-party, professional advice. If you are confused about how to allocate your funds or what actions to take, contact a representative at the organization that is handling your plan. 

Most companies offer paid time off (PTO) in the form of vacation days, holidays, personal leave and sick leave, giving employees the opportunity to use it when needed. Typically, your benefits package and your employer's website will include information about paid time off. Not all employers are the same, so it is important to inquire about what type of benefits are offered when it comes to time off. 

Vacation Time

Paid vacation time is a voluntary benefit that organizations offer to employees. Employees accrue hours of paid vacation time at a certain rate for each day worked and usually the amount of paid vacation time depends on the length of service and the level in the organization. A lot of organizations practice the "use it or lose it" system where you must take a certain amount of time prior to the end of a calendar year or that time won't carry over.

Personal Days

Personal days can be used by employees that need to take time away from work for reasons unrelated to illness, such as doctor’s appointments. Typical personal days usually range from 1-4 calendar days per year and most likely fall under the "use it or lose it" policy.

Other Leave/Time Off

Special circumstances that are unexpected or unforeseeable may fall under other paid time off with an employer. The three most typical circumstances include jury duty, military/reserve duty, and bereavement leave.

Family Medical Leave Act (FMLA) 

FMLA entitles eligible employees to take unpaid leave for medical reasons such as: the birth or adoption of a child, placement of a child for foster care, and for the care of a child, spouse, or parent who has a serious health condition.

Moving from one location to another can have some high costs associated with it, especially if you are moving across the country (or world). If you have to relocate for a job, inquiry with your employer about relocation expenses and coverage. 

Other things to consider in budgeting and planning for your move:

• Use products such as PODS to ship your belongings, renting your own truck and hiring help, or deciding what to sell or give away. If you have to pay for your own move, sometimes it will cost you less to replace small items than to pay for them to be moved.
• When you sign a lease, you’ll likely have to pay a security deposit and/or first and last month’s rent. Be sure that you have budgeted enough money to cover all of these since they are due upon signing. 
• Aside from paying rent, utilities and other expenses, you may want to look into renter's insurance. Policies can cost as little as $12/month and provide coverage in the event of a break-in, fire or flood.
• Though beanbag chairs and min-fridges may have made up your dorm room furnishings, you might want to put some money aside for furniture. Not everything has to be new and you might have some luck getting inexpensive items at secondhand, charity and consignment stores. Craigslist, Facebook Marketplace, and apps like Letgo are also great places to find items that people are selling at low costs.

Depending on your situation, websites like Apartments.com, Zillow, ApartmentFinder, or HotPads can be great starting off points. You can also browse your local classified ads, check Facebook or ask friends who rent in the area for recommendations. As you do your research, keep in mind what you want. Things to consider:

• Amenities (dishwasher, parking, laundry units)
• Parking or access to public transportation
• Proximity to work, stores, night-life
• Safety and demographics of the area 

If possible, visit the places you are interested in living in-person, look around and ask questions. Remember, this is a big decision and you'll want to know as much as possible. Ask about what to do if something breaks, their preferred payment method for rent, policies on painting or hanging things on the walls and more. 

You may want to also consider some assistance in finding a place to live that fits your criteria. If that is the case, you can work with a broker in the area.

To finalize your living situation, you'll have to provide some documentation about who you are as a reliable tenant. Be prepared by having these on-hand and ready to share:

• Paystubs: Usually a landlord will ask for the two most recent paystubs. You can access yours online through your employer or get a physical copy from your current boss.
• Personal Identification: Have your driver's license or other personal identification available when you fill out applications. This will provide proof of your residency. 
• Rental History and References: If you have rented before, you will need to provide a list as to where you lived previously. If you already have this ready to go, it will make the application process much easier to complete. You might also be asked for references from previous landlords or professional/personal contacts that can speak on your behalf regarding you as a responsible individual. 
• Checkbook: You may have to pay some fee to apply or to take the unit off the market until you sign the lease. It's better to document every payment with a paper check so you have your transactions in writing.

The Lease

Like any legal agreement, it’s important to know and understand what you’re agreeing to when you sign. Pay special attention to clauses about pets, damage policies, subletting, payment due dates and late fees, what utilities are included and any changes the landlord will make (increase in rent after xx months, etc). To help walk you through the process, apartmentguide has provided these resources.