You’ve just graduated and you’re about to embark on the world of adulthood, which entails getting your first job and shouldering financial responsibility. You’ll be earning your own income soon and we’re sure that can be causing a lot of questions, “How do I manage my money?” “Should I save? Or just spend?” “Does it matter? Just live life lah #YOLO”.
We hope this article helps answer some of those questions.
Yes, you should save and build your emergency savings. A common dilemma many of you face is, “How can I possibly save when my gaji (salary) is so little?” Remember this: It’s not about how much money you make, but what you do with that money that counts. An emergency saving is one of the most basic funds you need to have throughout your life, start young and try to build your emergency savings within the first year of your employment. This is a time when your commitments are low and you can afford to set aside more to your savings. The emergency fund prepares you for any financial setbacks or unforeseen circumstances that may require you to spend a little more than usual – such as a dental operation or bust tyres for instance.
Just say NO to instant gratification (for now). Give yourself some time to understand your spending habits and your motivations. Right now, is not the time to try to keep up with your friends’ lifestyles. You see them partying every weekend? Buying a fancy car, they can’t afford? Shopping at luxury brands and are in debt because of it? Those are not positive financial habits to follow. Just say no to temptation. Delayed gratification will serve you better, in the long run.
Don’t buy a car yet, or buy second-hand. Gone are the days when a car was the only means of getting around. Now, we have ride hailing services like GRAB and Uber; public transport lines like the bus, LRT and MRT stations; and even free bikes around certain sports in KL! Hold off buying a car within the first year of your new job, which will give you financial flexibility to spend (or save) in other areas. If you must buy a car, consider a local car and a second-hand one. A MYVI is a reliable and fuel-efficient vehicle and if you buy it second-hand, your monthly loan repayments are far less than a brand new one. You won’t feel so overwhelmed by the burden of loan repayments.
Pay off debt, fast! Make this a priority in your financial journey. Clear off any education debt or PTPTN loan ASAP so that you can focus on growing your wealth and moving into investments.
Apply for a basic credit card and build your credit score. Consider a credit card once you have a handle on your finances, which means, you know that you can afford to repay your credit card bill in full every month. Opt for a basic credit card which means it has zero annual fees and has a low monthly income requirement. A good credit score will help you in future financial product applications, like when you need to apply for a car loan or housing loan. But you need to ensure you keep it healthy by repaying your debt in full and on time.
But above all, remember to have some fun! You still have many years ahead of you so you don’t have to get financial management perfect just yet. You are allowed to make mistakes and learn from them. You are also allowed to treat yourself to nice things with your income, just make sure it is within your means and you can afford to pay for it in cash.
For more financial tips and advice, visit CompareHero.my today!
This article is contributed by CompareHero.my
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