The 4 Smartest Money Moves New College Grads Can Make

Graduating from college is an exciting milestone, but it also brings its share of unique challenges. For many, it's the first time they're wholly independent, responsible not only for their daily needs but their finances as well.

Everyone's lifestyle and priorities are different, and it might take some time to find the approach that works best for you. But if you hope to set yourself up for a comfortable future, here are some tasks to consider adding to your priority list.

1. Build an emergency fund

Building an emergency fund should be everyone's top financial priority. This provides you with a valuable safety net you can draw upon if you wind up out of work, injured, or filing an insurance claim. Chances are, you'll experience at least a few financial setbacks during your life, so the sooner you check this off your to-do list, the better.

It's up to you to decide how much to keep in your emergency fund, but aim for at least three months of living expenses. Then, you can build up to six or 12 months of savings if you'd like. Don't forget to periodically review the amount in your emergency fund and adjust it as needed. You may need to add more money over time if your living expenses increase.

Keep your emergency fund in a high-yield savings account where you can access it as needed. Though it might be tempting to try to grow it through investing, this could come back to bite you if you experience an emergency while the value of your investments is down.

2. Build a credit history if you don't already have one

Many young adults already have credit cards or have taken out loans, but there are still some who haven't. Some may even be reluctant to open a credit card for fear of taking on debt. But there are also a lot of upsides to doing this.

There's a good chance you'll want to borrow money at some point in your life to purchase a home or a car or fund some other large purchase. And if you want your loan application approved, you have to show lenders you've managed borrowed money well in the past. Banks and credit unions are often reluctant to work with those who have never borrowed money before because they have no way of knowing if you'll keep up with the payments.

Opening a credit card and charging a few small items to it each month and then paying the balance in full will help you demonstrate that you can handle this responsibility. You can try applying for a rewards credit card, but if you aren't having any luck, you may need a secured credit card. These cards are targeted at individuals trying to build a positive credit history.

3. Create a budget

Budgeting probably doesn't top anyone's list of favorite activities, but it's important to come up with one. It will enable you to see where your money is going and where you might be spending too much. It can also help you achieve your long-term goals more quickly. 

Start by tracking where your money goes each month. You don't have to go the arduous way of creating spreadsheets and doing mental math. These days, there are plenty of budgeting apps that can sync with your financial accounts and track a lot of your financial behavior for you. 

Once you know about how much money you have going in versus coming out each month, you can decide how you want to use anything left over. You probably want to allocate some to spend on yourself right now, but you may also want to begin saving for your long-term goals.

4. Begin saving for retirement

Retirement can feel a long way away when you're just starting out in your career, but it will sneak up on you faster than expected. And given that many workers estimate they will need close to $2 million to retire comfortably, it makes sense to get started right away.

If your employer offers a 401(k), this is a good place to begin, especially if your company matches some of your contributions. You can also open an IRA and stash some money here. Even if you're only able to set aside a few dollars a month, that's something to be proud of.

Some of these items may come easier to you than others, but try to find some time to address those things you haven't done already. And if financial constraints prohibit you from doing some of the above tasks, like saving for retirement or building an emergency fund, start by brainstorming ways to increase the money you have coming in.