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Oct 12, 2016 03:25 AM EDT

Finance 101: How Fresh Graduates Can Save Money On An Entry Level Salary

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Fresh graduates face a period of transition from academics to career. Along with the transition comes another time of adjustment as a professional. It may seem overwhelming but this is the next step that they have to take in order to be a positive contributor to society as well as to achieve their career goals.

A report by Michigan State University recently revealed that hiring and the starting salaries for college graduates will be higher than they've been in years. Hiring of college graduates throughout all degree levels is expected to go up by 23 percent. This is believed to be largely caused by company growth and employee turnover.

The research also found that employers are planning to offer some of the best starting salaries in a decade as well. Salaries for graduates across all degrees can see an increase by an average of 4 percent.

This is good news for fresh graduates who are ready to take on the corporate world. Vault.com shared four tips on how entry-level professionals can save money on an entry-level salary.

1. Sign up for a 401(k)

Contribute to whatever savings plan your company offers. This may seem unnecessary at first since it would seem so early to start planning your retirement. However, starting now would allow your savings to grow exponentially until you retire thanks to compound interest.

2. Set up a budget plan

After you get your job offer and you know exactly how much you're getting each payday, create a monthly budget plan. This will definitely help give you a visual representation of how much money you can spend and how much you need to allocate for your living expenses.

3. Search for extra income

Check your schedule. Do you have extra time on the weekends for a part-time job? Getting a part-time job or even signing up for gigs like in Uber, Lyft, Instacarts and Postmates. Having extra income can really help your budget and give you cash that you can set aside for rainy days.

4. Substitute wisely

Luxurious expenses that seem small, like a Starbucks coffee every day, can really add up. Cut down on unnecessary expenses by looking for more inexpensive substitutes. These may seem like small changes but they can really make a difference for your budget.

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