Ways to track your spending after college

Quick insights

• Some budgeting apps provide a real-time way to track your spending by syncing to your bank account.
• The 50-30-20 budgeting rule provides a framework for spending without needing to track every dollar.
• Post-college spending may also include planning how to save and pay down debt.

College graduation season can be an exciting time. Graduates are saying goodbye to their school years and navigating new expectations and responsibilities. Whether setting off on their own to pursue a new job or moving back home to survey the post-graduation landscape, change will likely be afoot. 

One big part of the post-college puzzle will be figuring out your finances. Tracking your spending is one way to help you see how you spend money and just how far it can go. 

In this article, we’ll discuss ways to track your spending as well as other considerations for managing your money after college.

Managing your post-college finances

Entering the post-college world can be a time when you’re learning how to manage your money in new ways. Graduates may find themselves responsible for expenses such as housing, groceries, healthcare and insurance for the first time.

If you’re not already using one, this may be an opportune time to create a budget. Budgets provide a guideline for your current spending as well as a plan to help you save for future expenses. Getting a handle on your money—especially if you’re earning your first paycheck at a professional job—can provide an opportunity for planning and examination of your spending habits.

Ways to track spending

One way to understand your finances is tracking your spending. There are a few ways to do this, including: 

Budgeting apps

Budgeting apps that connect to your bank accounts and credit cards provide one way to track and categorize your spending and also give you insights into your spending patterns and day-to-day expenses.  

Many apps also allow you to set spending limits on designated categories—like groceries and gas—and some can notify you when you’re close to or over the amount you budgeted in any given category.

Tracking expenses

If you prefer a more hands-on approach, you can use a budgeting spreadsheet to track your income and expenses. Spreadsheet software sometimes includes pre-made templates for personal budgeting. Tracking spending manually might require more effort on your part than using an app, but this manual process may provide a deeper understanding of your spending habits.

50-30-20 rule

If you feel overwhelmed by tracking every dollar you spend, there are straightforward budgeting frameworks that put your income and expenses into buckets for designated purposes.The 50-30-20 budget rule is one such framework.  

This budget rule helps you divide your income by needs, wants and goals:

• 50% of your income goes to needs—for example, rent, utilities and groceries
• 30% to wants—for example, entertainment and dining out
• 20% to savings and debt repayment—for example, student loans or an emergency fund

The 50-30-20 rule can be a good starting point for managing your money and an alternative to tracking every dollar spent. Plus, with this framework, you’ll be dedicating a portion of your income to savings and debt as well as expenses. 

Saving post-college

Even though your expenses might increase post-college, setting aside a portion of your income for savings could help you build a financial safety net. Having savings helps you prepare for unplanned expenses in the near and distant future, like saving for a house, wedding or even retirement. If you don’t have any savings, you may want to consider building an emergency fund first.  

There are a few ways to kick off saving—and stick to it—after graduation, including:

• Paying yourself first: This is a savings strategy where you deposit money in savings as soon as you receive your paycheck. The idea is that before you spend money on anything else, you transfer money into savings—thereby paying yourself first.
• Automating savings: An automatic savings plan generally involves regular deposits of a predetermined amount into a savings account, such as monthly or biweekly. Some people might choose to automatically transfer a fixed percentage of their paycheck or a set dollar amount to their savings account every time they get paid.

If you opened a student savings account while you were in school, you may also want to consider changing your account to a non-student one.

Tackle your debt

Debt is a common expense for college graduates, especially if they’ve taken on student loans to pay for their education.

Debts generally have a minimum amount due every month. But if you’re looking to pay it off as quickly as possible, there are debt payoff methods that may help. Common methods include:

• Debt snowball method: This debt repayment method prioritizes paying off your smallest debt first. Once you pay that off, take the amount you’ve been paying toward that debt and put it toward the next smallest debt until all your debts are paid. 
• Debt avalanche method: The method is a debt repayment strategy where you prioritize paying off debts with the highest interest rates first, while making minimum payments on the rest. This approach helps to reduce the total interest paid over time.

Everyone’s finances and financial goals are different, so it’s up to you to determine which methods work best for your financial situation. 

Review and adjust

Your income and expenses will likely change over time, so consider reviewing and adjusting your budget regularly. Your review can be as frequently or infrequently as you need depending on your preferences, but many people review their budget monthly. You may also want to consider reviewing your budget when something alters your financial circumstances like changing jobs, getting a raise or moving.  

In summary

There are many ways to track your expenses after college, including using budgeting apps, manually tracking your expenses in a spreadsheet or following a budget like the 50-30-20 rule. Tracking your expenses may also include creating a plan for saving and paying down debt. Reviewing your budget and finances on a regular basis or when your circumstances change may help you navigate your shifting expenses over time.