Let’s face it: college only lasts four to six years, depending on the person. Many seniors right now are facing the imminent “real world” that is right around the corner. Whether on the job hunt or deciding on a graduate school, students should start building their wealth now.

The best way to do this is to develop a budget and live by it. A budget allows you to understand where money goes, ensures that a student doesn’t spend more than they make and finds ways to increase overall wealth. 

The first step is to make sure your net worth is a positive number. A net worth is your assets (what you own) minus your liabilities (what you owe). To develop a budget, calculate your take-home from your job. Whatever starting salary offered is not in actuality what you take home at the end of the day. After taxes (federal, state, Social Security, etc.) and retirement and health insurance deductions, your pay can be 35 to 40 percent less than your starting salary. 

Don’t freak out, though. Despite these deductions, you can still have a positive net worth.

One way to control your net worth is to track your daily expenses for a month. This includes what you buy with cash, check and debit/credit card purchases. After the month is over, take a step back and see where your money goes and how to cut back, especially if you are in a deficit spending situation — when you’re spending more than you can make. 

Pay bills on time and in full. This is one of the best ways to ensure building wealth. When you forget about that credit card bill, your credit score goes down and this can affect your future decisions such as renting an apartment, buying a house or purchasing a car. 

After you land your first job, you should immediately use automatic paycheck withdrawals. Automatic paycheck withdrawal helps reduce temptation to spend your entire paycheck.

As soon as you enter the real world, you should start putting money in a savings account. It is best to save enough money to cover at least three to six months of necessary expenses, such as rent, food and bills. This safety cushion of saving will come in handy if you run into a bind like losing a job. This money will provide three to six months to focus on finding something new. 

Entering the “real world” can be nerve racking. But if you follow these few tips, your financial life will be under control, and you will start to build your wealth as soon as you graduate.