7 Ways to Avoid Post-college Money Nightmares ...

Limiting debt is one of the best ways to avoid post-college money nightmares. After graduating from college, getting an apartment, buying a house and purchasing furniture might top your to-do list. If you don't have cash, fight the urge to use a credit card or apply for in-store financing. If you're earning an entry-level salary, debt makes it harder to get ahead.

A credit card can help build your credit history, and it can provide funds in an emergency. But don't go overboard. Limit yourself to one credit card. But even with a credit card in your wallet, try and use cash for most purchases. Only use a credit card when absolutely necessary, and only when you can pay off the balance in full.

This is actually a step to take while still in school. Developing a savings habit early can build your nest egg sooner. After graduating college, it might be hard to save money, especially if you've taken on new financial obligations. Ideally, everyone should have a 3 to 6-month cash reserve – just in case of an emergency.

Some college students don't look for work until after graduation, but there are benefits to working while in school. Not only can you start saving earlier, with the income you earn you can contribute to your college-related expenses. If you can pay some of your college tuition upfront, or make interest payments while in school, this reduces your student debt.

You may think you can't afford insurance, but it's absolutely necessary. If you don't have renter's insurance, health insurance or disability insurance, one mishap can completely destroy your personal finances. Even if you can't afford the best coverage, some coverage is better than none.

While attending school, maybe you spent your money however you wanted with no limitations. But now that you're out of school and working and paying your own bills, you need a budget. A budget is a spending plan to help keep your finances on target. You can set a weekly or monthly budget, and then basically determine how much to allocate for certain spending categories such as housing, transportation, food, entertainment, etc.

Some college graduates get into trouble because they're so busy trying to live the good life and keep up with their friends. This might include shopping on a regular basis, planning expensive vacations and eating out at fancy restaurants. It's okay to enjoy a little fun, but moderation is just as important. Going forward, adjust your financial mindset and adopt a frugal one. This way, you'll keep more cash in the bank and avoid financial problems.

Even if you're fortunate enough to find a job right after college, bad money moves can rock your personal finances - so be careful. What are other ways to avoid post-college money nightmares?