Life After College 2
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READ PART 1Steps to take with your Student Loan when you Graduate
It is essential to update your contact information for your student loans when you graduate, and every time you move. You will still be responsible for making payments on your student loans regardless of whether you receive the statements via mail. You may also consider switching to paperless invoices, which will be sent to you via your student loan portal.
Verify Your Deferment
Although your student loans are supposed to automatically go on deferment when you graduate, sometimes there is a mistake, and the student loans do not. You may end up with late charges and interest payments if you do not verify that the student loans are on deferment.
A simple phone call to your loan company will allow you to verify this and save you the hassle of straightening out a mess after it happens and avoid any potential damage to your credit.
Consolidating Loans
You may have the option to consolidate your subsidized and unsubsidized loans into one payment once you graduate. Making one payment instead of several will be much more comfortable than paying several fees a month.
However, you should never consolidate federal student loans with your private student loans. This will cause you to lose the benefits of student loans like the Income-Based Repayment option or a hardship deferment if you lose your job. Private student loans do not offer the same payment terms.
You may want to consolidate any private student loans you have and try to refinance to a lower interest rate that you can lock-in. It may be challenging to do this until you have your first job, but it is something you should consider.
Private student loans have a much higher interest rate than federal loans. Depending on the type of private student loan, you may not be able to claim the interest as a tax deduction.
Payment Help or Forgiveness
It is worth looking at the different payment options that are available based on income and job choice. The Income-Based Repayment option will base your monthly payment on your income. To qualify for this repayment option, you'll need to apply with your student loan servicer and provide information such as your income and family size.
Another option is to consider student loan forgiveness options. If you work for the government or a nonprofit for 10 years and have a Federal Direct Loan, you can have the remaining balance of your loan forgiven if you have paid on time for the entirety of those ten years. Teachers qualify for a similar program, but the term is generally five years.
Some states may offer different loan forgiveness options. Some jobs may offer incentives and money to put toward your student loan as a signing bonus or after you have worked there for a set period. Taking the time to look for these options can help you save money and determine the best way to deal with your student loans now and in the future.
Make a Plan to Pay Them Off
Student loan debt can be crippling, especially when you are struggling to make ends meet with your first job. It is essential to set up a plan that will allow you to pay off your student loans as quickly as possible.
An essential part of this is setting up a budget that leaves room for extra payments on your debt. You should start with your private student loans and any consumer or credit card debt that you have from college, and then move on to your federal student loans. It is because the interest rate is lower, and because you can claim a portion of the interest on your taxes. You may need to be creative in finding extra money to pay on your student loans, like taking on a second job or freelancing to bring in the extra money.
What to Do if You're Behind on Your Student Loan Payments
You've missed a payment or several on your student loans. You're not alone. At the end of last year, more than 7 million people were at least nine months behind, so student loans went into default. Millions more have missed a few payments without hitting that nine-month cutoff.
You shouldn't take too much solace in having so much company, though.
Falling behind on your student loans can be costly in the long run. Your credit rating will suffer, late fees will pile up and continue to grow with interest. In the most extreme cases, the federal government can confiscate your tax refund and wages to pay off your debt.
But life happens, as they say, and here you are—either delinquent or in default. Here's the good news: Even if you're living paycheck to paycheck, you can still get your loan back in good standing with some effort.
This is what you need to do.
First, figure out what you owe.
If you've been avoiding correspondence with your loan servicer (the middlemen who handle your payments), you may not know how much you owe or how far behind you are. For federal loans, go to the National Student Loan Data System to find out. Private loans may be trickier because there isn't a similar one-stop system for private lending. You'll have to get the information directly from each individual lender, or you can look at www.annualcreditreport.com.
Then, make a payment plan.
There are a few possible scenarios here, but a smart next move across the board is to get in touch with your loan servicer. Note that if you have several different loans, you may have more than one servicer.
If you're only slightly behind (say, less than a couple months), and you earn enough money to afford the monthly payments, pay up. Then set up automatic monthly billing, so you don't fall behind in the future. Most automatic billing comes with a slight interest rate reduction that can save hundreds of dollars over the life of your loan.
If you've just fallen behind but can't afford the monthly payment, look into an income-based repayment plan, which will set the amount you have to pay each month to as little as 10% of your disposable income. For short-term financial challenges, you could also consider a forbearance, in which your loan payments will be temporarily postponed. Remember, though, that your loan still racks up interest while in patience, so the total amount you owe will grow.
At this phase, when you've just started to fall behind, your servicer should be doing everything it can to get you back on track. The level of help you get may vary, though, depending on who services your loan.
The real damage is after 270 days, or nine months, of missed payments. That's when you're officially in default, and your credit rating will be severely damaged. Your debt may be sent to a collection agency. You're also no longer eligible for forbearance, deferment, or income-based plans.
For federal loans, you have two main options: consolidation or rehabilitation. The National Consumer Law Center's Student Loan Borrower Assistance project has a helpful comparison of stabilization and recovery. You can also learn about your default status at the federal government's debt resolution website.
In general, you can consolidate all your existing loans into one new loan and resume making regular payments, or you can rehabilitate your loan, which requires deciding on an affordable monthly payment amount with your servicer or the collection agency, and then making nine on-time payments in a row. Rehabilitation takes longer, but it also erases the default notation from your credit report.
CREDIT CARDS / CREDIT SCORES
Your payments will likely be based on how much you'd owe under the federal government's income-based repayment plans. That means your minimum amount could be as low as $5 a month (Under standard income-based repayment, some borrowers' monthly bill could actually be $0. But to get your loans out of default, you have to demonstrate that you're willing and able to make consistent payments, hence the $5 amount.)
Under both consolidation and rehabilitation, you will have to pay for some collection and late fees. The Consumer Financial Protection Bureau has this helpful guide to walk you through which of the above options would be best for you.
Finally, don't fall behind again.
Both consolidation and rehabilitation are one-time offers. If you come back from default but find yourself struggling again, see if you can qualify for smaller payments under an income-driven plan. Keep in regular contact with your servicer and contact the U.S. Department of Education's loan ombudsman or file a complaint with the CFPB if you're not getting the answers you need from your servicer.
Start building your credits now if you haven't
Establishing a strong credit history after you graduate from college can be tricky, especially if you have little on which to build. If you have a student loan account in good standing or have your own credit card with no missed payments, you're off to a great start.
There are numerous ways to build your credit, whether you start from scratch or with a brief history of loan or card payments. Your best strategy can depend a lot on your post-graduation plans — whether you aim to get a full-time job, a string of freelance gigs, or travel the world for a year.
First steps in building your credit after college graduation
Check your credit score and pull your credit report. This applies only if you have used credit cards or installment loans, such as student or car loans, in the past. FICO credit score ranges are as follows: reduced (579 or lower), fair (580-669), good (670-739), very good (740-799), and exceptional (800 or higher). The higher your credit score, the better your chances of getting approved for a credit card with favorable terms. You can get your credit score and a copy of your credit report for free at Bankrate.com.
Review your credit report for errors and phony accounts. Errors and fraudulent statements in your credit report can prevent you from getting approved for credit cards and loans. File a dispute with the major credit bureaus – Equifax, Experian, and TransUnion – if you find mistakes or bogus accounts in your credit report.
Become an authorized user or get a co-signer. Authorized users can use the credit extended to the cardholder but do not hold legal responsibility to pay the bill. And the account will be added to your credit report, which will help you build a credit history. You could also get a co-signer for your credit card. Still, that person would be legally responsible for making payments on your card if you default.
Apply for a credit card. Pick the best card based on your credit quality. If you have a low score or no credit, you may have to start out with a secured card. A medium-range credit score could qualify you for no-annual-fee, cashback, and rewards credit card. Applying for several tags can be risky because you could shave some points off your credit score and/or give prospective lenders the impression you're overly dependent on credit. It's best to apply for one credit card that matches your needs best.
Make all payments on time. A missed credit card or loan payment will significantly damage your credit score. Missing a rent or utility payment may not affect your score unless your renter or utility provider turns it over to a collection agency.
Refer to the "FICO 5." Your credit score depends on five key FICO credit scoring factors. Use them as a guide for managing your credit.
FICO doesn't collect credit data on its own. Instead, it pulls your credit reports calculated by credit bureaus (Experian, Equifax, and Transunion). It crunches that information into a three-digit credit score.
While the FICO scoring system's inner workings are a closely guarded secret, the company is open about the five general components of a FICO credit score and how big a role each plays in coming up with the number.
See related: What is a good credit score?
Here's a breakdown of the five elements of the FICO score:
1. Payment history
Your payment history comprises 35 percent of the total credit score and the most critical factor affecting credit score calculations. According to FICO, past long-term behavior is used to forecast future long-term behavior.
FICO keeps an eye on both revolving loans – such as credit cards – and installment loans, such as mortgages or student loans.
"FICO scores consider the frequency, recency, and severity of reported missed payments," said Tommy Lee, principal scientist at FICO. "Generally speaking, FICO scores do not consider missing a loan payment as more negative than missing a credit card payment."
One of the best ways for borrowers to improve their credit scores is by making consistent, timely payments. Previously, you had to rely on lenders and landlords to report this information to the credit bureaus. But with the 2019 launch of Experian Boost, you can take more control of your credit score by self-reporting good behavior.
One of the best ways for borrowers to improve their credit scores is by making consistent, timely payments.
See related:18 things that hurt your credit score, 16 things that don't hurt your credit score.
2. Credit utilization
Credit utilization – the percentage of available credit that has been borrowed – makes up 30 percent of your total credit score.
Since FICO views borrowers who habitually max out credit cards – or who get very close to their credit limits, people who cannot handle debt responsibly try to maintain low credit card balances. FICO says people with the best scores tend to have an average credit utilization ratio of less than 6 percent, with three accounts carrying balances and less than $3,000 owed on revolving accounts.
Since FICO views borrowers who habitually max out credit cards as people who cannot handle debt responsibly, try to maintain low credit card balances.
No benchmark credit utilization ratio above zero will maximize your credit score – not even the oft-cited "30-percent rule," Lee said. Credit utilization is measured individually by card and also across multiple cards.
As you see, the first two factors make up nearly two-thirds of your score. So, if you pay your bills on time and don't carry significant balances, you're two-thirds of the way toward a good credit score. The final credit score pieces can move you from an excellent rating to a great one.
3. Length of credit history
Length of credit history – the length of time each account has been open and the length of time since the account's most recent action – is 15 percent of your total credit score.
It's impossible to have a perfect credit score if you're new to credit. Still, it doesn't necessarily take long to achieve a high score. A more extended credit history provides more information and offers a better picture of long-term financial behavior.
Therefore, to improve their credit scores, individuals without a credit history should begin using credit. Those with credit should maintain long-standing accounts.
"Those who don't have a long credit history can still have an excellent FICO score if they have no missed payments and low utilization ratios," Lee said.
"Those who don't have a long credit history can still have an excellent FICO score if they have no missed payments and low utilization ratios."
See related: New FICO score focuses on how much money you have in the bank.
4. New credit
While new credit accounts for 10 percent of your total FICO credit score. But this doesn't mean that opening multiple credit lines at the same time will improve your score. In fact, such behavior could suggest you are in financial trouble by needing significant access to lots of credit.
"We encourage consumers to apply for and open new credit accounts only as needed," Lee said. "New accounts will lower your average account age, which will have a larger effect on your FICO scores if you don't have a lot of other credit information."
New accounts will lower your average account age, which will have a more significant effect on your FICO scores if you don't have a lot of other credit information."
See related: A two-step plan for building young credit.
5. Credit mix
The credit mix makes up the last 10 percent of your score. While this is somewhat of a vague category, but experts say that repaying a variety of debt products indicates the borrower can handle all sorts of credit. According to FICO, historical data suggests that borrowers with the right mix of revolving credit and installment loans generally represent less risk for lenders.
"People with no credit cards tend to be viewed as higher risk than people who have managed credit cards responsibly," Lee said. "Having credit cards and installment loans with a good credit history will help your FICO scores."
See Related: New tools help take the guesswork out of improving credit scores.
Knowing the various weights given to components of a FICO credit score can help you identify the areas your score most needs to improve.
How your credit score can impact your post-grad life
Your post-graduate income scenario could look completely different if you're in your first job as an aerospace engineer compared to the first job as a teacher. The amount of credit you apply for and use should depend on your income.
The amount of credit you build and your credit score could impact many different areas of your life, including:
Your future interest rates
Credit card and loan applications
Getting an apartment
Security deposits on utilities
Signing up for a cell phone plan
Getting a job
How high your insurance premiums are
The ease or difficulty you have in starting your own business
Ease or difficulty in purchasing a car
Choosing the best credit-building strategy can depend a lot on your plans after graduation. Here are the best ways to build credit based on different post-graduation scenarios.
If you are working full-time
Earning a steady income can put you in the best position to establish an excellent credit score, but that depends on how well you manage future credit. If you're starting a new job right out of school, it's essential to give yourself a few months to settle in before planning major expenses or applying for credit cards. After all, you have to iron out many different types of costs, such as how much you pay for groceries or gas each month, not to mention your student loan payments.
It is essential first to build an emergency savings fund after you graduate. This can provide you with a financial cushion if that first job doesn't work out. It also can put you in a better position to manage monthly expenses if you're planning to buy a car, lease an apartment, or even buy a small house or condo.
Once your job situation has stabilized and you've built up some savings, consider applying for a credit card – but only if you're sure you can repay any charges you rack up each month. If you're new to credit, your issuer may charge the highest APR allowable under the card's terms. The interest rate could be in the top 20 percent range, which is why it's important to avoid interest charges by not charging more than you can pay off every month.
Checking your credit score will give you an idea of what type of card you can qualify for if you start with a score of 669 or lower or no credit, a secured credit card that requires a cash deposit that will be equal to your credit limit – maybe your best option. It can enable you to get an unsecured card within a year if you make all your payments on time – the most critical factor in your credit score. A "good" rating (670-739) is likely to qualify you for an unsecured card, possibly with rewards, cash back, and no annual fee.
If you're applying for a credit card for the first time, you'll likely be assigned a low credit limit. Avoid the temptation to spend too much of your available credit, as credit utilization accounts for 30 percent of your credit score. You can ask for a credit limit increase after 12 months or more of responsible use.
If you are getting paid by the gig - Freelancing
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If you're not ready to jump into full-time work, or you can't seem to find an opening, short-term freelance gigs can be a good option. Of course, smart budgeting and saving for an emergency are even more critical if you're not earning a steady paycheck. Working from gig to gig can set you up to miss credit card and loan payments if you're not careful.
For freelancers, the advice is always to save enough money to get by without a job for three to six months. This can help if you experience a prolonged gap between jobs or get hired for a long-term project and won't get paid until it's done. If you have a credit card, factor in how much your monthly payment would be if it were maxed out, and keep that amount in your savings, Harper says.
Freelance workers with a limited credit history who want to build credit but get paid irregularly may consider applying for a secured card at first. Or, if you have a decent score, you may want to avoid cards with annual fees, such as those typically associated with travel rewards cards, to keep costs down.
Consider your specific needs and what a credit card can offer you. For example, if you're an Uber driver, you might consider getting gas rewards, or if you're an entrepreneur, find a business credit card with additional benefits and perks if you're trying to get your new business off the ground.
If you see the world
Many young people plan extended vacations or take temporary jobs abroad right after graduating from college. This can be a severe scenario to build credit, and you can be forgiven for not focusing on it while you're away. For most of us, scaling the credit score ladder is not as exciting as climbing Mount Everest, seeing Paris at night, or teaching Chinese grade-schoolers how to speak your language.
Having access to credit can be a traveler's lifesaver, however. Many credit cards offer emergency travel assistance, including tracking down lost luggage and locating an English-speaking pharmacy to find a lawyer if you get arrested.
Travel rewards cards can help you save on overseas flights, lodging, and meals, putting more money in your pocket to pay other expenses. Keep in mind that most cards with travel perks require excellent or excellent credit and often come with higher annual fees, so this may not be an option if your credit history is thin.
Check the terms of any card you plan to apply for and avoid the ones that charge foreign transaction fees, as those fees can add up to 3 percent on non-U.S. purchases.
Using a credit card abroad can also help you save on currency exchange rates. The rates set by card networks such as Visa, Mastercard, and American Express are the same across the board, and they're often 5 to 10 percent better than those offered by bank branches.
Perhaps the most important thing to remember if you're away for a lengthy period is to stay on top of any bills that are coming due back home. It can take longer to send money to U.S. payees if you're out of the country, particularly if you're in a remote region with a spotty cellphone or web service.
If you are in grad school
Student credit cards are a great way to go if you're in graduate school and are curious about your credit card options. This is because they offer perks like free Amazon Prime Student membership or extra rewards for good grades, which aren't available for those hitting that first job instead.
In graduate school, your credit card needs could run the gamut from textbooks to takeout (the time you don't have as a first-year medical student is no joke) and even tuition. Note that some colleges and universities allow you to escape a convenience fee. Still, it's essential to ask because a convenience fee could inflate the charges on your card if you charge an extra 3 percent on an already hefty tuition fee, making a difference.
It's also essential to be sure that you have enough available credit to put any tuition fees on your card.
Once you graduate, you might wonder what you should do with your student card. Unless there's an annual fee, there's no reason to cancel the map, but you might want to request a credit limit increase or upgrade your card.
How to "graduate" to excellent credit
Post-college credit building scenarios vary, but the formula for attaining a good credit score is always the same. No matter what your career plan is, it's vitally important to pay credit card and loan balances on time and use as little available credit as possible, among other good habits. However, some methods might take longer, and there are a few scenarios in which you might need to speedily increase your credit, particularly if you want to buy a house or require a car to get you to and from work. A few options to build confidence quickly include:
Obtain a secured credit card
Ask a family member to add you as an authorized user on their card
Have someone co-sign with you for a new credit card
Ultimately, it's important to remember to use tags wisely and stick to a habit of saving more than you spend, whether you have a job, are in graduate school, or you're doing a year of service after graduation, the path to excellent credit can be easy to follow.
Don't go claiming 99
If you claim too few exemptions, you will typically have a large refund when you file your taxes. While a large refund is courteous to have, due to the present value of money, it is better to have the money sooner — during the year worked.
If you claim too many exemptions, you will wind up owing the IRS money and maybe hit with penalties and interest. And typically, from what we see, many years go by before the under-withholding problem is solved. This leads to a large balance further inflated by penalties and interest.
A common issue occurs for employees who work a lot of overtime. Because our tax system is progressive, rates increase as you make more money, and withholding overtime pay will be proportionally higher than the average wage. Many overtime workers expecting to see a hefty paycheck after putting in say 20 extra hours are dismayed to see the government has taken so much, and they have to wait to file their taxes to get their money back. So there is a temptation to inflate deductions, so the IRS isn't keeping hard-earned overtime money for in some cases, over a year.
Want to start your own business, here's a cheat sheet
Before turning down a steady job or packing away the interview suit, recent grads need to evaluate if they truly have what it takes to start a business.
1. Follow your passion
As an entrepreneur, the importance of doing work that brings you joy and fulfillment cannot be overstated. A founder's passion is key to ensuring that business thrives. You have to do what you love to have a fulfilling career. You need to find a job or career path within a field that you are passionate about, then get in there quickly, dig in, learn, and add value."
Doing work that has meaning will provide the motivation needed to get through the rough patches and tumultuous times that are an inevitable part of building any new venture.
2. Do the research
The only way to know if what seemed like a great idea in your dorm room can become a viable business is to do the research. Take the time to study all the elements that go into establishing your new business, and you need to get to know your market and its particular needs. First-time entrepreneurs massively overlook market research, and this accounts for the reason countless people fail because the market wasn't there for the idea to be scalable. You need to understand the operations and finance of the business. Too many new grads want to jump to strategy and innovation, but spending time developing depth of experience will pay off many times over.
3. Learn from the inside
Regardless of when you decide to start your business, there's value in taking some time to learn from more seasoned professionals. Working for someone else for a short time can help you build an extensive list of contacts, pick up best practices, and learn from your industry leaders. There are job-related functions you are not taught in school and only learn on the job, why not learn those tasks and endure the mistakes of doing them wrong – as an employee?
Additionally, gaining experience in a variety of companies and work environments may help you refine your ideas about what exactly you want to accomplish.
4. Find mentors
Finding experienced and trusted advisers who can offer guidance and support will help a new entrepreneur navigate business development and ownership pitfalls.
Nothing shortens a learning curve more than someone with been-there-done-that experience. Graduates should find a stable of mentors and build mutually beneficial relationships.
Mentors are crucial on so many levels. They can refer you to a job, connect you with a potential client, provide honest and unbiased advice, and offer support during challenging times.
"You can talk to them about topics that seem very daunting, ask questions that feel amateurish, discuss pricing candidly, and share your wildest dreams for your business," said Nickel.
5. Network constantly
A robust professional network often makes the difference between success and failure for your business. One way to build this network is to make connections as often as possible and with as many people as possible.
While building your network, don't ignore the potential power of your existing relationships. The biggest mistake new graduates can make in their enthusiasm to get a venture off the ground is to overlook the web of classmates, family, neighbors, past employers, and community leaders that have shaped their lives.
In addition to using a variety of social networking tools to expand your circle of contacts, aspiring entrepreneurs should seek out strategic volunteer opportunities.
6. Use your tech know-how
Recent college grads who are digital natives are uniquely equipped to harness technology's power to establish, promote, and grow their businesses. As the years go on, we become more technologically advanced to the point where various companies don't even have a physical office.
Purchasing your brand's domain name and building a website is a necessary first step, but there are plenty of other things you can do to leverage tech tools. You can grow interested in your business by building up an Instagram following, writing for popular blogs and online magazines, and launching products on Etsy or Amazon.
7. Develop great communication skills
Communication is a fundamental skill in life and business. Interpersonal communication can be challenging for many college graduates because they've grown up in a world where so much is shared via social media, texting, or direct messaging.
Online communication can often be misinterpreted or misunderstood. Nothing gets a deal done faster than meeting in person if that isn't possible, call, especially if reaching out to someone of an older generation.
Another component of excellent communication is finding a way to tell your company's origin story passionately, clearly, and succinctly. Sometimes entrepreneurs, especially technologists, can be introverts, but you have to get out of that and build both your willingness and skills to communicate.
Those who struggle with verbal communication can practice different approaches to strengthen this ability to express their vision for their business. For example, Bonner recommends coming up with planned responses to some of the most common questions asked about your business and then testing out your answers on friends, colleagues, and family members who have varying degrees of knowledge about your company and industry. Getting your messaging right will open doors to bigger and better conversations in the future.
8. Figure out finances
All entrepreneurs need to prepare for every aspect of running a business. This includes developing a sound understanding and managing the financial aspects of their company, including financial analysis, taxes, and budgeting.
Early-stage entrepreneurs should seek out online courses in finance and study various startup, business models. You may not be able to afford some services yet while starting up, and it's in your best interest to be acclimatized with every aspect of your fussiness in full details. There should be no job in your business that you can't do, at least in theory.
9. Cultivate grit
If you want to start a business, you must put the desire for instant gratification aside and plan to work harder and longer than you ever imagined. Developing a calm resilience and commitment to your business will be necessary to get through the toughest days.
If you want to be a successful entrepreneur, you need to have grit and not give up on the first try. There are a million challenges, and you just have to pound your way through them."
So much of what it takes to create a new business is simply about the unglamorous monotony of hard work. Prospective business owners need to understand this reality before venturing forth. As a business owner, you will work twice as much as the time you would on a job and always have more work to do at the end of the day. The concept of "leaving work at work' does not exist when you are an entrepreneur, because you alone are responsible for making your business a success.
Flexibility must also be part of the new entrepreneur's psyche. You can't always get from point A to point B in the way you mapped out. Customers may not always be with you, partners may change, distribution channels may shift, but you have to be willing to push up your sleeves and wade into unknown territory with equal parts fearlessness and optimism. But even in the face of all these challenges, your business can thrive if you have enough tenacity and courage to stay the course.
10. Understand that failure is part of the process
According to the Bureau of Labor Statistics, about 50 percent of small businesses fail by their fifth year. This sobering fact may be enough to dissuade those with a low tolerance for risk from ever starting a business. However, young entrepreneurs shouldn't fear failure, but instead, recognize that it can teach them valuable lessons about their business and the path their careers should take. Failure is often stigmatized in society, but recent grads who want to build a business must push past these confining notions of success.
If you're starting a business, remember that companies need to take risks to grow, and sometimes these risks lead to failure. Good judgment should always be exercised, but, assuming it is, failures should be viewed as teachable moments.
11. Stop comparing yourself to others
Perhaps the most important lesson of all is about the need to drop the ego and staying focused on your goals. Eric Zuckerman, president of Pac Team Group, recalls that when he set up a venture right out of school, one of the most challenging aspects was seeing friends begin to advance professionally and monetarily. At the same time, he struggled to create something from nothing.
"The reality of starting a business often means little to no income and an enormous dedication of your time and energy," explained Zuckerman. "As your friends begin to land traditional jobs out of school, start getting money in their pockets, build new social circles and go out, it is easy to not only be jealous but also begin doubting the path you've chosen."
For Zuckerman and many other innovators, survival is all about not comparing themselves to others or getting caught up in what they are missing. Still, honing the long-term vision, they have for this business. Zuckerman said, "This mindset allowed me to persevere through those initial months and years when the temptation of throwing in the towel for a more traditional career path was at its greatest."
12. Don't be afraid to take the leap
Once you've done your research, you are ready to jump in. It may seem easier first to gain some experience, save a bit of money, and start a business. But walking away from such stability will be harder than you think, and you may end up never leaping.
"It's better to go for it, and then get a job if it doesn't work out, rather than get a job and never go for it," said an entrepreneur, who launched her business while still in college.
If you need additional income while launching your business, reach out to fellow startups to see if they have any part-time work opportunities, or looking for grants for young entrepreneurs. The U.S. Small Business Administration also offers prospective entrepreneurs resources, including workshops and entrepreneur education classes on a variety of topics.
Ultimately, however, it comes down to trusting that you'll figure things out as you go along. And remember, you don't need to know how the entire journey will play out; you just need to start.
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