When you are studying you got your money from your parents, and that feeling is heaven. Why? Because all you have to do is accept all the money that is been given to you, without thinking how hard it is earned by your parents. You tend to live in the day where everything in your life is instant without hesitation to buy this and that, without even a break of asking them more money because of projects, fieldtrips, new dress, new shoes, new things and you don’t necessarily need.
But here is the thing, life after college is not fun, games and party anymore. After that graduation rights and all the thanksgiving party is the liberating thoughts of you so called new found freedom, but then you will become overwhelmed by your financial obligations.
You are supposed to make a living for yourself; you have a new responsibility of living your life, and a new meaning of how to value money, and a whole lot of stress to come your way.
Here are the few tips on you can succeed in managing your finances, you are new to the real world so this will help you:
- Understand what money specifically means to you
It is different now, you earn you spend. Come to think of what the value of money for you, no one is perfect in managing their money for the first time. Do you still think that your salary will be used to parties, shopping, and leisure. Well take time to think of what is the purpose and the use of your money.
- Get two kinds of income: active and passive
Active income means the effort you allot in here will be rewarded over a short term. Think of this as making money after selling something like chicken – instant profit but lower value.
Passive income, the effort you allot in here will reward you in the long run – postponed profit but with significant value.
- Identify your goals
You cannot achieve something that you cannot even quantify, list down your financial goals and their respective time or span.
- Make a cash inflow and cash outflow
Take time to make a budget! This is a must! Budgeting is a like a regular reality check that you need every time. It makes you think right and points you to the right direction.
- Automate your savings
Purchase your needs, and sometimes want.
- At the early age start an investment
This may be nonsense to you now, but in the future you’ll see the significance of these tips to your life.