Viking Magazine - May 2022 - 11

sponsored retirement plans
may include a 401(k), 403(b)
or SIMPLE IRA. If you can,
contribute the maximum annual
amount (in 2022, that's $20,500
for 401(k)s and 403(b)s, and
$14,000 for SIMPLE IRAs),
but at the very least, put in
enough to take advantage of
your employer's contribution
matching program, if they
offer one.
* Health insurance: Before
opting for the cheapest health
insurance coverage, consider
what's important to you-
whether it's mental health,
dental and vision, or holistic
medicine-and choose a plan
that aligns with those values.
* Life insurance: Many companies
will offer life insurance at
no charge to employees, but
that shouldn't be the only
coverage you have, since
employer-sponsored policies
usually won't follow you when
you leave the company. Also
consider an individual life
insurance policy, like Sons of
Norway's term and permanent
products.
BUDGETS
A budget is essential for new college
grads learning to balance a salary
and bills. Here are a couple of
popular budgeting methods:
* Envelope method: Cash out
your paycheck and split the
money amongst envelopes
for each area of your budget,
such as rent, groceries,
entertainment, gas and utilities.
Once the money is gone,
you can't spend any more in
that category until your next
paycheck.
* 50/30/20 method: Developed
by U.S. Senator Elizabeth
Warren, this method advises
you to split your income by
percentages-50% to needs
@sonsofnorway
(rent, groceries, utilities), 30%
to wants (hobbies, vacations,
dining out) and 20% to
financial goals (savings, debt
payments).
* Zero-based method: With zerobased
budgeting, the goal is to
" get to zero " every pay period.
For example, if you start with
$1,500, each dollar must be
allocated to some area of your
budget-including rent, car
insurance, groceries, savings-
until you get to zero.
CREDIT AND DEBT
As a new college grad, building your
credit is important to secure loans
for items like cars and homes in the
future. While having and using a
credit card isn't inherently bad, you
do have to use them responsibly:
* Make on-time payments.
Payment history has the biggest
impact on your credit score. Set
up auto pay to ensure you never
miss a payment-even if it's
only the minimum amount due.
* Watch your credit utilization
ratio. Ideally, you should pay
off your credit cards in full
every month, but if that's
not realistic, make sure your
credit utilization ratio-how
much you owe, divided by
your total credit limit-
doesn't exceed 30%.
* Tackle debt quickly.
Compounded interest can
multiply your debt, so it's
important to have a plan to pay
it off. Two popular approaches
include the avalanche method,
in which you focus on the debt
with the highest interest rate
first, and the snowball method,
where the smallest debt amount
is paid off first. ▼
SNAPSHOT
NEXT-GEN WORKFORCE
Generation Z is the current cohort graduating from
college, and they have an ideal work environment in mind:
Source: " The State of Gen Z 2020 "
37%
29%
26%
26%
020 40 60 80 100
SALARY
FLEXIBILITY
CULTURE
BENEFITS
The attractiveness
of a potential
job or employer
comes down to
salary, scheduling
flexibility,
workplace culture
and benefits.
42%
31%
31%
24%
HOURS
INSURANCE
OVERTIME PAY
020 40 60 80 100
Workplace benefits
matter. Gen Zers
want flexible
hours, overtime
pay, 100% paid
health insurance
and a yearly salary
increase.
SALARY INCREASE
PAID HEALTH
36%
32%
27%
24%
CO-WORKERS
BOSS
AUTHENTIC SELF
ADVANCEMENT
020 40 60 80 100
To stay at their job
after the first week,
Gen Z wants to like their
co-workers and boss,
feel like they can be
their authentic self and
having a clear pathway to
advance in their career.
Sons of Norway, 1455 West Lake Street, Minneapolis, MN, offers financial products, but not all products are
available in all states. Products issued by Sons of Norway are available to applicants who meet membership,
insurability and residency requirements.
May 2022
11

Viking Magazine - May 2022

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