Have you recently accepted a job or internship for this summer and feel overwhelmed with all the details and responsibilities that come with it? This blog post will help you navigate the details of starting somewhere new so you can focus on your new job instead. During this time of the semester many people have already accepted offers for the summer or full-time jobs after graduation, but if you are still comparing offers then check out peer counselor Ryan’s blog about working through different job offers to determine the best one. Once you have accepted your job or internship, use the following information to help position yourself for a successful transition.
- Finding housing
First off, let me congratulate you on your new job/internship! This is a big step in life and can help you determine how the rest of your career will look. Now that you’ve accepted the job, one of the first things to look at is where you want to live. If you’re like me, you probably want to upgrade and live somewhere bigger, nicer, and close to work or somewhere else you frequently go. The only downside to this is that it will most likely be more expensive and sought after, so you will have to look early and often. Below are some different tips when looking at housing for your new job:
- Look at something in your price range – A good rule of thumb is for rent not to exceed 30% of your income, but this is flexible depending on your situation.
- Set a budget for rent and other housing expenses every month – If this is proving to be difficult, make an appointment with Powercat Financial so we can help you!
- Find a roommate – I know you have probably been looking forward to living without roommates, but they can significantly decrease your costs. I recommend having a roommate that you can trust to pay rent and live with well.
- Look early and often – I recommend looking as soon as you accept your job offer because likely your ideal living space is also ideal for lots of other people. If you know early enough, searching 6 months in advance is worth it.
- Learn about the space – Read reviews online, tour the apartment, have applicable questions for the landlord, and have a parent or someone you trust come and look at it with you.
- Look at transportation – Is it close to work or where you want to be? Is the neighborhood walkable, bike-able, and drivable? Make sure there is an option for public transportation if you need it.
Read this article about Apartment Hunting for more tips on searching and applying. Being approved for a new living space can be tricky if you don’t qualify yourself, so the next section details how to be approved for your apartment.
- Be a Good Applicant
Most landlords and banks will look at your credit history, proof of income, savings, and other factors before they approve/deny your application or loan. The following are tips to make yourself a more desirable renter.
- Have quality credit history – This means that your credit score is excellent (650+) and you have minimal bad marks on your credit report. To learn more about building credit please read Peer Counselor Alex’s blog about Building Good Credit in College.
- Have proof of income – Your potential landlord wants to know that you can pay rent every month, so make sure you supply them with your job offer/proof of income. They generally look at how much the rent is in proportion to your new income and prefer applicants that stay below the 30% mark that I listed above.
- Have some savings – As a college student it may be difficult to have a lot of money in your savings account, it may be necessary for some landlords to see. In addition to proof of income, they want to see if you can pay rent if you suddenly lose your job. At Powercat Financial, we recommend having at least 3-6 months of living expenses saved for an emergency, and landlords like to see you have this in place in case of an emergency.
- Have a co–signor – If you currently don’t have any credit, income, or savings then don’t worry, there is still another option! If you have someone with quality credit and income sign on your lease with you or be a guarantor, then you have a much better chance of being approved. Make sure this person is someone you trust, possesses good credit, and is willing to pay if you cannot pay.
I have met several students that don’t meet one of these three criteria and must resort to using a guarantor or co-signor, but this isn’t necessarily bad. It just means that you should start building credit and saving some money now so the next place you go won’t require you to have a co-signor. Landlords and loan officers look at these to make sure you can pay them on time, so make sure you’re working towards establishing these if you haven’t already.
Create a Budget for Your New Income
I know this sounds tedious, but creating a budget with all your new income and expenses can alleviate stress and let you focus more on your new position. This can help you estimate your actual take-home pay, your potential savings for retirement and other goals, and give you an idea of what everything will cost in your new city. I have had many students come in because they don’t understand their job benefits, so I recommend checking out our website on benefits and reading Ryan’s blog I mentioned above to familiarize yourself with them. I also recommend making an appointment with us at Powercat Financial for this portion so we can go through your benefits and determine how much spending money you will have. Below are some tips you can use to start your budget for the month you begin working:
- Download our “spending plan worksheet” from the Powercat Financial website and follow the instructions listed in our budgeting section.
- Estimate your current income and expenses
- Use your new salary/wage for monthly income and then use current expenses to estimate expenses.
- It can be hard to estimate your new expenses, so use your current ones (unless you already know rent and other fixed expenses) and then change them based on this cost of living calculator to more accurately represent expenses in your new city.
- Make sure to estimate your taxes! If you have no idea, please make an appointment and we can come up with a rough estimate together.
- Include savings for your financial goals, whether that is retirement, buying a house, or anything else you would like to work towards.
- Make sure to estimate your student loan payments and include them in your budget – make an appointment with us and we can help you come up with your monthly payment and incorporate it into your salary.
- Incorporate your benefits into the budget
- For example: If health insurance is a deduction from income, then make sure to include it as an expense on your worksheet.
These budgeting tips will help you prepare for the first step in your budgeting process, but there are several more steps that I have not included because I want you to read all of this blog. If you are interested in learning more about the entire budgeting process, please read Abram’s blog on the Benefits of Budgeting. This should also help you get started on the process and explain why we talk about budgeting so much at Powercat.
Feeling Confident?
I hope this information has given you confidence to start your transition to work, but it shouldn’t be where you stop. I want to emphasize that this process can be very overwhelming and difficult to do alone, so I highly recommend that you schedule an appointment with Powercat Financial so one of our peer counselors can help you work through your transition to the workforce. We are well-versed in job benefits, evaluating offers, and preparing you to start your career and the sessions are 100% FREE and confidential as long as you’re a student at Kansas State!
Cal Shimkus
Peer Counselor II
Powercat Financial
302 K-State Student Union, Third Floor
918 N. 17th Street
Manhattan, KS 66502-2800
785.532.2889
www.k-state.edu/powercatfinancial
