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Few things are as terrifying and exciting as the prospect of leaving university. The idea of having to get a job, pay off your loans, get a place becomes a part of reality. This holds true especially for students who haven’t been the lucky ones to be placed into jobs or graduate schemes even before leaving university. Life after grad school doesn’t have to be so scary, though. With a few wise pointers here and there, you could be pretty comfortable. All you have to keep in mind is that you are living in reality, and that means making a few wise decisions. Make a budget Do it before the pinch starts hurting. Once you start working, you have to start prioritizing your expenses, saving and cutting down on unnecessary things. Once you start working, figure out how much money you actually bring home, after taxes. From this amount, determine how much you need to spend. Don’t forget the rule of thumb here, never spend more than you make. Try and not use credit cards if you are not sure about how you will pay the bills every month. Keep in mind that those bills come with interest. To make the budget, do the essential expenses first. Total things like rent, student loans, food, transport, utilities and then what is left over is there for spending and saving. Cut down on the eating out and retail therapy. Get on that debt right away If you are graduating with debt, then make it one of your top priorities to get rid of that monster as soon as possible. Even if that means, pinching and having less fun for a couple of years, then do it. Try and free yourself so that you can explore the world and the opportunities it has to offer. If you have joined one of those graduate schemes right after university, then use that chance to quickly reduce your debt. Make an emergency fund Get a savings bank account and start building an emergency stash for contingencies. And no, this doesn’t mean a roll of bills stashed under a mattress. Ideally, experts say that it should be worth at least three months of expenses. Take it seriously, because you never know what’s coming. Get into investing You might say that you are “too young” to start investing. It’s best to start as early as possible. With an unpredictable economy, it’s always good to have a head start. Start finding out more about bonds, mutual funds and stocks. You could go online and look at some financial websites which offer great advice for newbies. Consult a lawyer specialising in finance for more technical help. Have health insurance Yes, you are in your 20s, young blood and all that. But that doesn’t mean you cannot fall sick. Also, accidents happen too. Get health insurance and you will tap yourself on the back later. If your job doesn’t come with health insurance then get it on your own. Also, if your employer is offering a retirement plan, then take the advantage and go for it. Your medical bills will be taken care of if you have health insurance. Of course, following all the finance tips above doesn’t mean you can’t have fn. It’s just about taking some responsibility so that you can have some fun without having to worry about paying the bills next month. After some time, if you have enough money saved up, you can even go for a backpacking trip with some of your friends, just to reward yourself. About the author Terry has been a financial reporter for some established finance magazines and websites for the past ten years. She has written many articles on finance advice for students, graduate jobs, finance graduate schemes and more. In her spare time, Terry likes to paint.
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finance advice for students, graduate student schemes, graduate jobs,
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