Finally, after 16 years of formal education, you have graduated. You are now prepared to enter the corporate world to pursue your dreams. We are sure that you are well equipped to conquer your career dreams. But there are some tips that aren’t taught in your formal education, which we think will be useful for you to know. These are personal finance tips that everyone should know, just that it is even more important for young graduates like you to know.
Just Graduated? Here’re 5 Useful Tips That You Got To Know
Now that you have graduated, you have moved past the phase of receiving monthly allowance. You are now moving into the phase of taking on more financial commitments, like taking care of your parents, saving for your own wedding and your own home. You can no longer afford to spend money as though someone will be there to top up your wallet with new daily allowance the next day. Keeping track of your expenses will become a necessary task for you every month. You need to have a good grasp of where and how you are spending your money and whether your money is well spent.
Apart from keeping track of your expenses, you also need to pick up the habit of saving, if you haven’t already done so. There are two types of savings you should have: Emergency savings and big-ticket item savings. Emergency savings are meant to help you cope with your expenses if you happen to be unemployed for a while. Big ticket items are like your first home or your wedding banquet where it is a matter of time before you need to get them. As these big-ticket items don’t come cheap, you need to start saving for them early to avoid straining your finances.
Once you have cultivated the habit of saving, the next step is to start building a well-rounded portfolio for your personal finances. A well-rounded portfolio includes protection element like insurance and wealth growing elements like investments. Both of these elements are important in helping you protect your finances and also help you prepare for a longer-term goal of retirement.
What kind of insurance does a graduate need? Do you already have a similar kind of protection from your current plans? Get a free portfolio consultation from our team of friendly experts at Moneyline. Indicate your interest in a free portfolio consultation here.
Knowing that loans aren’t good for your finances is an important money tip that every graduate should understand. Loans come at a cost, i.e. the interest rate that it charges. Thus, unless it is necessary, you should try to get rid of your loans like tertiary education loan as quickly as possible. This will help you to avoid spending your hard-earned money on the bank’s interest rate.
That being said, there are some good type of loans that you require in life such as home loan to help you afford your dream home. If you are planning to take a loan that you deem is necessary, make sure you get the best deal by shopping around the market for the lowest interest rate loan.
Moneyline helps you find the best home and personal loans on the market through its loan comparison tool. Check out how it can help you source for the best loan in the market.
Everyone wants to be happy, and so do graduates. The society has been subconsciously teaching us that the pursuit of material wants will make us happy. However, according to researchers from top universities, happiness is derived from experiences, no things. Thus, if you are searching for happiness, spend your time more wisely on seeking experiences rather than filling up your home with material things.