This advice is part of a series InvestorPlace.com has compiled, inviting academics from across the U.S. to share their thoughts on aspects of finance that new graduates should know. Their thoughts have been presented with little to no editing. Today’s entry comes to us from Laura Gonzalez, Ph.D., an Associate Professor of Finance at California State University, Long Beach who has more than 10 years of experience teaching finance courses at the graduate and undergraduate level and spoke with InvestorPlace via email about financial advice for recent graduates.
The recovery from the 2008 crisis involved a “wolf” market that was volatile. The recovery from the 2020 crisis, even for sectors that are faring well, is likely to involve volatility as well, especially because we are likely to see some policy changes. Now more than ever, investors need to pay close attention to fundamentals and invest long-term.
It’s important new graduates are aware of Covid-19 related concessions regarding minimum payments and fee-free delays in repayment of student loans.
Equally essential is avoiding further leverage, say to take opportunity of discounted new car prices, for example. Given that remote labor will continue for months, there is no rush to seek accommodation close to work. That should provide a significant saving as well.
After every global economic crisis, there is a period of growth and a new economy. That affects budgeting and investments.
Some sectors will grow further, and since investments should be considered long-term, it is important to “know thyself,” matching support towards particular enterprises and industrial sectors with personal values.
It is quite likely that even after the pandemic passes, employees will resist commute and appreciate the flexibility of working from home at least one day a week. Employers will see this as a reasonable and productive alternative to expensive bonuses and other benefits.
As employees rediscover suburban perks, it is important to be aware of which expenses can be covered by employers, such as state-of-the-art antivirus programs and last-generation laptops.
You can read the next installment of “Money Moves for Recent Grads” here, and find the entire collection here.
