Did you just graduate? If yes, many congratulations to you! Your hard work, dedication, and perseverance have finally paid off. With this new chapter in life, it is natural to be excited and ready for the thrill, and honestly, you should be. But understand that this landmark achievement comes with a lot of responsibilities and uncertainties.
Here onwards, you'll need to make several financial decisions. From renting a private apartment to buying a car, you'll need to learn many brand new things, starting with opening a new bank account. And you can’t be casual about any of them (no sir!). The choices and decisions one makes right after graduation can play a significant role in setting up their path toward financial success in life.
So, if you’re going through some kind of financial awakening and looking for guidance, well you’re on the right platform. We have jotted down a few critical points of financial wisdom that will be highly beneficial for you. Here we go!
Start practicing money saving
Never forget that as a new graduate, savings will be your friend. Always! Financial experts suggest you must keep enough savings in your account that you’re able to cover three to six months of living expenses (just in case things go a little south). Regulate a stable percentage of your earnings that you can comfortably deposit in your savings account every month. You can start with less, but make sure you’re always regular with it. Once you start practicing this method, you’ll be shocked at how much you can save.
Try paying off your student loan at the earliest
Getting a grip on your student loan can be a little daunting in the beginning, but it doesn’t have to be. Just take a deep breath and organize. Make note of how much you owe, identify different interest rates, understand what type of loan you’ve taken, and what are its repayment terms. Being knowledgeable about these specifics will allow you to get your arms around your financial condition and release the anxiety of uncertainty. And be sure to make your loan payments on time!
Build a good credit score
Are you planning on buying a car soon or an expensive watch or high-end smartphone for which you’ll need a personal loan? If yes, you need to sincerely work on your credit score. A good credit score can open doors for making those purchases on your list. Not only that, it will also lead to benefits like better interest rates on insurance. To strengthen your credit score, make sure all of your existing payments (like bills) are made on time. Keep your credit balances low, and pay off any debt you accrue as soon as possible.
New graduates may find it quite overwhelming and challenging to navigate new financial responsibilities. You will often find yourself dealing with questions like how much to save or how much to spend on your rent. Well, don’t worry! Things will find their way. Remember, every decision to make right now will shape your financial future in the coming years. By starting being accountable this soon and learning about the basics of personal finance, you’ll get a kick start for your adult life.