What A Photography Consultant Learned About Finance In His Transition From College Student To Young ProfessionalBy Emily Marks
Lawrence Peart is a photography consultant from Austin, TX. Speaking to Mint's blog, one of the finance apps that every college student needs, he reflected on his transition from college student to young professional.
Peart shared what he learned about finance during those years and how, in his experience, it is possible to graduate from college without debt. He also learned how to adjust to higher and more expenses as a young professional but, at the same time, save money for his future.
It was noted that majority of Mint users aged 18 to 25 earn between $25K and $50K annually. While this seems like enough to live a comfortable life, this figure is plagued by an increased spending on rent, entertainment and education-related expenses, which is mostly student loan repayment.
It was also revealed that the users of the budgeting app have an average credit score of 690. This is because they pay their balances by the end of the month, saving on the cost of interest for remaining balances.
However, only 7 percent of college graduates aged 25 and below have significant long-term savings. Peart is a part of that 7 percent and has a goal to live debt-free and retire in his 20's.
"I think it might surprise most people to hear that I spend far less money now than I did in college," he said. "Once you start earning an actual income and developing a clearer sense of your relationship to money it becomes much easier to save, and feels more rewarding to do so."
As mentioned above, he does not have any outstanding college debt. Peart revealed that he chose a public school in an inexpensive city and applied for scholarships. He also worked part-time during his sophomore year. This helped him manage his expenses.
"You can save quite a bit of money not doing the stuff everyone seems to think you have to be doing," he added. "If you don't buy fancy clothes, go out for drinks every day, feel the need to keep up with the newest phone every 6 months etc., all of that extra cash starts to add up."