The 5 Mistakes New College Graduates Make

2. The super sized apartment with a side of furniture

Finally, freedom! No more dorms. No more sharing a bathroom with 20 other people. No more having someone tell you what you can hang on your walls, when you can listen to music and when you can come and go. Why not celebrate by getting a nice big apartment all of your own!

It sounds great, but there are a few drawbacks. First, that great check you’re getting from your employer won’t be quite so great once they’ve taken out taxes and retirement contributions. Add to that student loan payments, credit card payments, the big utilities that go with big apartments and you end up with enough for a couple packets of ramen noodles and some tuna. Tack on all of the furniture you’ll have to buy to fill a 900sf space instead of a 300sf one and you can forget about the tuna.

Instead of opting for the penthouse, consider sharing an apartment with a friend (or three) for the first year or two out of school. This will do a couple of things. 1 – it will help you transition from student to employee while still having a pre-made social life. It’s harder to make friends once you’re out of school so you want to hang on to the ones you have. 2 – it will keep down the cost of living expenses until you get used to having money and learning how to budget it.

If you’re really just ultra sick of living with someone, consider getting a small studio all on your own instead of the 3 bedroom ultra-pad. This will keep rent and utility costs down and limit the amount of spending you can do on furniture and decorations.

1. Ooh, pretty, sparkly

3. The employee’s new clothes

4. Retirement? I’m only 23! I’ve got plenty of time!

5. Credit, credit, who’s got good credit?