Recent college graduates have a lot on their minds – where they’ll live, what kind of job they’ll get, and, in many cases, how they’ll manage to pay off their student loan debt. College graduates have been faced with a down economy in which jobs are harder to come by, whether they have a degree or not. For many, that has meant implementing a frugal lifestyle in order to pay the bills and attempt to lower debt levels.

It may be best to try to pay off your student loans as soon as possible, but it can be difficult to do so. That’s why it’s important to have a good plan in place – and it’s essential that you’re looking out for any unknowns in that plan.

If you got into a car accident, got sick, or had your belongings stolen, it could have a major impact on your finances if you haven’t taken steps to protect yourself. So, when you’re creating a budget, make sure that you allot money for car insurance (if you drive a car), health insurance and renter’s insurance.

What is renter’s insurance? It’s possibly the least expensive way to protect yourself and your belongings when living in rental properties. A renter’s insurance policy can help protect your personal property from fire damage, theft, and vandalism while also providing liability protection for your visitors and guests.

When compared to what it would take to replace your belongings, the cost of renter’s insurance is often very affordable, even for those on a strict budget. And if cash is especially tight, it’s even more important to protect yourself from major financial stresses.

Your renter’s insurance policy typically includes:

* Personal property protection – Covering the loss or damage of a renter’s personal belongings usually on and, in most cases, off of your premises.

* Liability protection – Providing legal representation and protection against judgments for covered events.

* Guest medical protection — Generally covers medical costs for visitors injured at a renter’s home.

* Reimbursed living expenses – Reimbursement for costs of temporary housing, should it be necessary.

Not addressing your student loan debts can haunt you well into your future. That’s why it’s best to develop a serious financial plan as soon as you can – even before you’ve graduated. If you already have your diploma in hand, make sure your finances are protected and keep focused on how great it will feel to have the loans paid off.