Paying for college probably wasn’t easy, but now that you’ve graduated it’s time to get even more serious about financial responsibilities. The first thing you should do is set a budget that helps you meet your monthly costs. The best time to do this is right after you’ve agreed on a salary from your first job. You’ll need to list all of your living expenses and subtract them from the amount of pay you’ll bring home after taxes. What’s left is disposable income, or money to play with. Here are some more pointers:

1. Always pay your bills on time. Not only will you avoid late fees and interest charges, you’ll establish good habits and protecting your credit rating if you always pay your bills by the due date. Why is that important? It’s hard to rent an apartment, get a home or car loan or sometimes even a job if you have a low credit report rating. A good rating can also ensure better interest rates on loans and lower car insurance premiums. Think of your credit report as your grade point average. A few bad marks will lower the whole thing.

2. Keep your credit card use to a minimum. It is a good idea to accept at least one credit card offer, as long as there’s no annual fee and the interest rate is competitive. Why? You can use it for online purchases and in the case of emergencies or big-ticket items. Do not let yourself take more than a couple months to pay the balance in full however. It won’t take long before the interest charges snowball and you find yourself in over your head. To continue to build a good credit score, consider using a credit card every month to pay for small things like groceries and pay the balance in full every month.

3. Force yourself to save from the very beginning of your earning life. If you’re not prepared for little emergencies, how will you pay for a blown tire or a trip home to visit a sick relative? That’s when credit card usage usually comes into play and we just discussed the negatives involved. If you find it too difficult to find a little extra money to save out of every paycheck, ask your employer about a company savings plan that takes your contribution out before you get your check. The best part is that usually the employer makes a contribution as well.

4. Keep your eye on your checking account balance. The biggest culprit in overdrawn accounts is the debit card. Don’t confuse it with a credit card – the money comes directly out of your checking account. If you don’t keep a log of what you’ve spent with your debit card you might find that you’ve spend more than you have. The result is nasty overdraft fees that multiply with every single usage. Imagine a drive-through burger ending up costing you over $40 by the time you add the fee.

You’ve probably been looking forward to your independence for a long time and this is your chance to shine. Be responsible with your money and work hard. You’ll probably indulge in something you can’t afford or make some mistakes along the way, but never stop trying to get ahead financially.

Jon Ross is an economics instructor who runs seminars on scholarships and online degree programs for adults.