'Develop A Bizarre Ritual' And 13 Other Ways New Grads Can Save Money

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Oh, hi, recent or soon-to-be graduate. ConGRADulations!

Now that you’re done with college or high school, maybe your plans involve further schooling, or getting serious about a career, or traveling to far-off lands. Or perhaps you have the time and luxury to hang out for a while until you figure out what’s next.

And I know it feels like you can’t possibly consume ONE MORE PIECE of information. I get that. Heck, when I finished school the only thing I could read that summer were racy Judy Blume novels. But also, I designed my college career around being home to watch All My Children, so take that for what it’s worth.

BUT. There are a few things I’ve learned along the way. I had a less-than-ideal financial education from my parents (though we know everyone does the best they can). I made a ton of major mistakes that include overpaying for a new car, buying real estate at the height of the market and falling down a well of debt so deep I went bankrupt in my late 20s. But look at me now! I write about money for a living. I own property and I’m on track for retiring — eventually. I have a dog and a kid. And that’s why I want to outline what I wish someone had told me about work and money when I finished school and got ready to conquer the world — so you don’t pull all the dumbass moves I did.

You may try and fail at many, many things. At least, I hope you do — you’ll be a more interesting and educated person for it. I hope that you learn to work hard — and smart. By that I mean don’t do extra stupid time-filler stuff, like clean an already clean desk to just look busy (if you’re really that desperate for something to do, start making a list of side-hustles, catch up on thank-you notes, or get going on your screenplay). I mean make the work you do count, and contribute something to the betterment of the world. Even if it's the tiniest corner of it.

Some of the advice is hard-won from my own experience and what I’ve learned talking to hundreds of money professionals, some comes from great financial minds, and some is crowd-sourced from business owners and expert savers. I hope that you use the pieces that resonate for you.

1. Think small: It’s hard to make the leap to think that saving change, or not spending $5 here or $20 there will make a major difference in your life. And you’re right, it won’t. But what does make a difference is the habits you form, because our habits constitute our lifestyle. If you’re used to passing on an impulse buy, saving for things that matter (or appreciate), and making a long-term strategic plan, you’ll be better off than most Gen Z’ers—only about 27% of 22- to 26-year-olds contribute to a retirement account.

2. Think big: I once had this friend who would drive a full 20 minutes or more looking for the cheapest gas station. It would be, say, the difference between paying $2.50 and $2.60 per gallon. But to save that $1.50 or so per tank, she used up time and money. The better question for her would have been, “How do I make an extra $5 today so I don’t have to waste time looking for cheap gas?” Take this as a metaphor. When you’re sweating the very, very small things, you might be missing the bigger picture.

3. Eat in: If you spend $10 on lunch every work day, that comes to $2,600 per year. If you’d put that money in an investment account from the time you’re 25 until you retire at 65—and not a penny more—you’ll have $329,773 with a very modest 5% interest rate.

4. Shack up: Split the rent with a roommate, even if you can afford living alone, and save for a down payment on a house. A one-bedroom apartment in Seattle, for example, averages $1,650, but a two-bedroom place costs $2,250. So you’d save $525 each month if you moved in with someone, plus you could split utilities for further savings. That’s at least $6,300 each year. “Other ways to house hack include buying a small multi-unit property or buying a home and setting up an income suite,” says Brian Davis, a real estate investor who offers free courses on income from rentals at SnapLandlord.com. Owning real estate also provides great tax advantages.

5. Cut costs: Why pay retail? When you learn to maximize online and physical coupons, you’re getting the same goods and services at steep discounts. “It’s not for old ladies. It’s an addicting game that yields amazing financial results,” says attorney Megan Zavieh, who is also a mother of four who spends less than $1,000 a month to feed her family — including dinners out. To start, she took an online couponing class and uses sites such as JennsCouponBoxes.com, Yes We Coupon and Coupons.com.

6. Get a side hustle: There are hundreds of ways to make extra money — and some can turn into full-time pursuits. Sites such as Fivrr, Lyft.com, VRBO, TaskRabbit let you connect with potential clients on your own schedule. In fact, here’s an exhaustive list of extra-income ideas from Side Hustle Nation. Even if it’s only $100 extra per month, think of it as a way to pay for your phone or utilities.

7. Develop a bizarre ritual: Whether it’s a fiver in the swear jar or stashing $3 in savings whenever you order a beer, saving money becomes more fun when you gamify it . For example, I don’t spend $10 bills — even if it means I have to go to the ATM to get more cash — because I’m religious about saving them with the goal of taking my daughter to France once I accumulate enough. Apps such as Qapital can help you save by creating personalized rules that automatically help you reach your savings goals.

8. Start strong: Marc Cenedella, founder of CEO of the career site, Ladders, also adds this advice for people starting their working life: “Negotiate your salary at every job. Even an extra $5,000 per year can help at each stage. The compounding effect when you earn and save this over time is enormous. Remember, there’s always room to negotiate."

9. Make your mark: When I entered the corporate world, I was dismayed by the amount of no-reason rules and busywork and what seemed like a quest for ultimate mediocrity, and expressed this to my director. He sat me down and said, “Be entrepreneurial.” He left it to me to figure out what that would mean, exactly, and so I became my own brand, starting new practices and initiatives within my Corporate Communications team. Some would do well and some didn’t, and more than once people dismissed me as, “the creative one.” But because of that push to make things happen, I started what would be an award-winning, industry-leading social media program before people really understood what Twitter was.

10. Learn about investing: I know, retirement is for old people, and you’re not even thinking about that yet. But still, it’s critical to at least have an awareness that one day, you will want (and need) a huge pot of money so you can rest and play and leave a legacy. If your employer has a 401(k) or similar program, jump in—usually there’s a match, and that’s like taking free money. I have most of my money in a managed account with a brokerage house, but I also keep some on the side in a self-service TDAmeritrade account so that it’s easy to buy and sell stocks. It’s a hands-on way to truly understand when “hunches” work for and against you, how the market moves, and how buying and selling individual stocks play out. But, as in Vegas, play only what you can afford to lose. There are no guarantees.

11. Stuff is overrated: It seems crazy to me that we, as a nation, pay nearly $33 billion in storage fees every year. So often the value of the stuff we’re storing is eclipsed by how much we’re paying to keep it. When you have more things, you need a bigger place. Of course it’s fun to shop and have new things, but try to buy only things you love and need. What can you rent or borrow (tools, books, gowns) that you’ll only use once? I know everyone’s hating on Marie Kondo these days, backlashing against her life-changing magic of clearing clutter, but it makes sense from not only an emotional/spiritual standpoint, but from an economic one as well. Better to have two great pairs of expensive shoes than five crappy ones that will wear out and look bad almost immediately.

12. Read, read, read: Read a little something every day about money and investing. It could be signing up for a regular email from DailyWorth, bookmarking a personal finance site (like Lynnette Khalfani-Cox, Pocket of Money, or ours here at Forbes.com), or keeping a money book on your nightstand and reading a little every night. Barbara Stanny, Suze Orman, Dave Ramsey are all good authors to read for a basic money education.

13. Your brand starts now: How do you want others to see you? Wildly creative? A top-notch problem-solver? Trustworthy? You leave a digital footprint every time you log into social media, and you’ll be amazed at how things that are supposed to be private can suddenly become public when someone screen shots and reposts your words, or if you accidentally make a private post public. Once, I was getting ready to interview an intern (who would have been lavishly paid), and looked her up on Twitter for a little background. “On my way to an interview, bitchez!” was her most recent post. Which is probably fine for her own audience of friends, but at a conservative company, it was a deal-breaker because it called into question her judgment and attitude. Marketing guru Everette Taylor tells people starting careers to create an online presence and portfolio and keep it impeccable—you never know who will be in a position to help you down the line.

14. Your credit score follows you: You can move, change your hair, reconstruct your face and even erase your fingerprints with some radical surgery. But your credit score is with you forever—even if you’re consciously ignoring it. Start at a site like CreditKarma to see what your score is now. Work toward establishing and improving it by creating auto-payments so you’re never late (these show up and last a while), holding a healthy credit availability-to-use ratio, and getting in the habit of challenging incorrect or outdated information that shows up on your credit report. Here are a bunch of tips from FICO, a credit scoring agency, that can help. Can’t seem to get a card? One way to start is to ask to be on someone else’s card, and use and pay off a small balance each month to build your own credit.

These are just a few of the things I wish I knew when I started my own financial life, and I live and swear by them now. And one other thing: Sunscreen, not just on your face, but on your chest and neck too. Unlike a credit score, you can’t repair damaged skin, ever.

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