5 Money Tips for the Fresh Grad
by StudyMalaysia.com on September 19, 2018 | Top Stories
“Yes, I’m free!” from most fresh graduates, probably. There’s nothing quite like graduating from college or university with your certificate in hand feeling prepared to take on the adult world. The anticipation to finally get out there to earn your own living is quite the feeling to have. As you earn your first pay, however, realization sets in that it’s not that fun, so here’s five money tips for you as you start adulting.
Have self-control, a lot of it
Everyone feels like a millionaire when their pay comes in. Especially if you’re a fresh graduate, your first pay will very likely be much higher than whatever part-time job you would’ve had. Therefore, self-control is important.
Of course, you deserve that nice treat with your first pay – go ahead and indulge slightly to bask in the satisfaction of self-achievement, but don’t overdo it. Always keep in mind that you should spend only within your means; resist drinking Starbucks every single morning, resist that brand-new iPhone. It’s all about being self-disciplined.
Get started on clearing off your debt
If you have debts coming from your studies such as PTPTN, it’s best you get started on repaying them right from your first pay. The sooner you clear off your debts, the lesser burden you’ll have in the future. The last thing you’d want as you grow older is to have to repay many debts at the same time, especially when you’re very likely to be overladen with commitments later.
If you’re having trouble trying to repay your debts, try to negotiate for a more suitable payment plan. Whatever you do, make sure you’re clearing it off.
Start planning for a rainy day
It almost goes without saying, but always set aside a minimum of at least 10% every month to be kept in your savings. If you can, it’s always better to put aside more than 10%, of course. Try to build up a savings that’s at least 3 months of your monthly expenses as an emergency fund when the unwanted happens.
Get yourself a credit card and take advantage of it
A credit card is one of the easiest ways to overspend, but when used responsibly it’s an invaluable tool! Cashback and rewards credit cards can help you earn a lot of benefits when you use them to shop and pay your bills. If you are going to have to spend on groceries anyway, why not get a little savings in return, right?
Also, don’t forget to repay your credit card in full when the statement comes. If you use a credit card responsibly and repay in full all the time, then you’ll build yourself a good credit score as an excellent paymaster, which is important when you apply for financial products later.
Don’t buy a car!
If you’ve just started your first job for a few months, don’t get committed into paying up to nine years for a car loan! It isn’t a wise move and it will set your savings back a lot, especially if your first pay is very likely on the average fresh graduate salary range – it isn’t simply worth the commitment.
However, if you must have a car because there are literally zero transportation for you anywhere, do try to opt for a cheaper make or even a used one. Your dream car can wait, don’t rush into it.