Ah, your 20’s. That whimsical, glamorous decade you always dreamed about in your teens, most likely fueled by Friends reruns and an over reliance on early-millennium alternative rock. Of course, much of the wisdom imparted by the quintessential “twenty-something” pop culture phenomenon did include several warnings of a fiscally-challenging post-grad world, but let’s face it: we were all too distracted by the cute outfits and dysfunctional romantic entanglements to pay attention to the real lessons.
Though there are, in fact, a number of benefits to being a twenty-something, many of the best aspects of the years immediately following college come with a steep price tag. And no, you probably won’t be able to afford it.
Here are the main reasons you’ll be spending your first few years of freedom eating Ramen noodles and over utilizing your credit cards:
1. Student Loans
This one’s a bit of a given, but always worth mentioning. Student loans are financial drain on everyone, and thanks to economy, you might not actually have a job when they kick in. Expect to start receiving your monthly bill around six to eight months following graduation, and unlike several other forms of debt, your student loans won’t even qualify for bankruptcy.
2. Underemployment
How many 25-year-old interns do you currently know? Are all of the 25-year-olds you know currently interns? I thought so. Though many of your friends will probably be lucky enough to find a job directly after graduation, almost none of them will make a decent salary. Wages are at an all-time proportional low for millennials, and you will likely be living paycheck-to-paycheck for at least seven years.
3. Rent
The rent is too damn high, and the cost of actually getting into an apartment is higher. Even if you can afford the monthly rent for a studio in a desirable neighborhood, the moving costs, broker fees, and security deposits will wipe you clean.
4. Equally Broke Friends
If you want to spend time with your friends who haven’t found jobs yet, you’ll probably be footing the bill way more often than you can afford. There’s a very fine line between wanting to preserve your friendship and your bank account, and we all cross it eventually.
5. Weddings/Engagements/Baby Showers
Were you the “cool guy” in high school and college who always had a lot of older friends? Congratulations, Asshole. All those older friends are going to start getting married and reproducing this year, and you’re going to have to shell out a present for everything.
6. Going Out
Getting drunk probably wasn’t cheap in college, either, but at least you weren’t paying for any other bills during that time. Now, it’s a battle between that second gin and tonic and your electricity bill, and you won’t always know which option is more important at any given time. The most important thing you need to do when it comes to paying your electricity bills is figuring out how much electricity you’re using or plan to use. This is because the effective rate that you pay for electricity depends on how much you’re using. Some electricity plans in states like Texas will favor lower-usage levels, while others favor larger homes that use a lot of electricity. Checking the electricity comparison rates and knowing your usage is key to finding the cheapest electricity rate for your home and keeping your electricity bills as low as possible.
Knowing your usage is key to finding the cheapest electricity rate for your home and keeping your electricity bills as low as possible.