After years of hard work, untold hours of studying and countless exams, you’ve finally achieved a major milestone—graduating from college. As you look forward to your first professional job, it’s important to develop successful financial habits to build a solid roadmap for the future.

We’ve outlined a few of the key pieces to consider for developing a successful strategy.

Creating a Budget

Before creating short- and long-term goals, you should start with calculating your income to create a baseline and to gain a full understanding of your finances. For instance, you may have new expenses such as rent or groceries or you’d like to create an emergency fund for unexpected expenses.

Starting with something you can track month to month—such as a simple Excel budgeting sheet—will help you stay consistent. The principle is straightforward: save more and spend less. But you can’t work toward that goal without understanding the individual components that make up your financial picture.

If you’d like to expand your financial literacy, Busey offers our complimentary service, Financial Pathways. The educational platform provides an engaging learning experience through a series of interactive modules designed to deliver actionable financial education. Centered around a robust content library, the personalized experience includes over 250 educational experiences and tools. To learn more, visit busey.com/FinancialPathways.

Paying Student Loans

In 2024, 42 percent of those ages 18 to 29 who at least attended college had taken on student loan debt. If you are facing loan repayment, it’s critical to have a strategy in place to handle it. Make sure you know when the payments start and focus on paying down the high-interest loans first as you incorporate them into your monthly budget.

If you are considering pursuing an additional degree or professional certification, it is essential to assess the return on investment associated with that pursuit. Carefully evaluate your existing financial obligations and ensure that you have accounted for potential emergency expenses before taking on any new debt.

As you start to pay down your loans, creating a good credit history is key. A good credit score can help you secure a better interest rate and potentially result in greater savings potential as a result. Additionally, paying down current credit card debt is critical to building a good credit rating.

Investing in Your Future

If your employer offers a 401(k) plan and a matching contribution, it is highly recommended that you contribute at least enough to receive the full match—it’s basically free money for your future. When you receive salary increases, consider upping your contribution from your paycheck. Check out Busey’s Money Matters blog to learn more about maximizing your 401(k).

If investing is in your future, it’s crucial to carefully monitor and adjust your investments. It's important to align them with your evolving goals to avoid concentrated positions and to ensure you are taking an appropriate level of risk.

Consider organizing your retirement strategy into three distinct categories of assets:

• Taxable accounts, such as agency and brokerage accounts,
• Pre‑tax accounts, including traditional 401(k) plans, 529 plans and Health Savings Accounts, and
• Post‑tax accounts, such as Roth individual retirement accounts (IRAs).

Maintaining an appropriate balance among these categories over time enhances tax diversification and reduces the risk of over‑concentration in any single tax structure. This approach helps mitigate the potential for substantial tax liabilities in retirement, particularly those associated with required minimum distributions from pre‑tax accounts.

Additional considerations include:

• Taxable accounts provide liquidity and flexible withdrawal options, though gains may be subject to capital‑gains tax.
• Pre‑tax accounts offer immediate tax benefits but may generate significant taxable income later in life.
• Post‑tax accounts allow for tax‑free withdrawals, offering strategic value when managing income in retirement.
• Balancing these categories ultimately supports long‑term tax efficiency and preserves flexibility as your financial needs evolve.

It's essential to understand what you are buying and selling, as well as the tax consequences associated with these transactions before making them. Review your strategy and allocation at least once a year, maybe more depending on your circumstances. To learn more about the basics of investing, visit our Money Matters blog.

As always, it is recommended that you consult with your tax and/or financial advisor to ensure your strategy is right for your circumstances.

The experienced team with Busey Wealth Management is here to help you on your financial journey. To learn more about our services or find an advisor near you, please visit busey.com/wealth-management.

This is not intended to provide legal, tax or accounting advice. Any statement contained in this communication concerning U.S. tax matters is not intended or written to be used, and cannot be used, for the purpose of avoiding penalties imposed on the relevant taxpayer. Clients should obtain their own independent tax advice based on their particular circumstances.

This material is provided for educational purposes only and should not be construed as investment advice or an offer or solicitation to buy or sell securities.

This presentation is for general information purposes only. It does not take into account the particular investment objectives, restrictions, tax and financial situation or other needs of any specific client.