The moment you graduate is the best feeling in the world as to you have to say goodbye to all the school requirements, to your terror teacher, and all the bad memories you have during college but then saying goodbye to the people who feels like your second parent, brothers or sisters are one of the hardest. But eventually you will learn how to cope up.
During college you don’t think of the ways to make your finances work, because you have constant support from your parents but you do not know that by starting early in saving and being aware of how to handle finances can be the best leap when you graduate from college, because in a way your savings can help you start something new which is applying for work.
Best practices to handle your finances:
- Pencil out a budget
After working for a few and you are not used to the amount of money you take home pay after taxes then you are earning, you have to figure out how much money you can afford to spend each month. Mapping out your budget is a best way to help you uncover whether you are on the rough road to spending more than what you make.
- Stay with your parents for a couple of months
It won’t make you less of an individual if you are still staying with your parents even though you are already making money on your own. This is the practical side of life. Not having to pay rentals let you save much money, and start a saving or emergency fund.
- Steer clear of debt
Debt can stop you from pursuing a job you want to have or from the job you loved because your salary is not enough to meet your monthly obligations.
- Reduce your debt load as soon as possible
You have to re-frame the way you think about your debts. Prioritize what should be paid first.
- Prioritize emergency fund
A bank account is a smart place for your rainy day fund.
- Start investing
Investment is one of the best things you can start as early as you are earning. The earlier you start the advantage which means you have a long time for your money to grow.
Being young doesn’t mean you have to party always, adulating is really a big thing. Once you feel the burden of reality you’ll wish to go back to school and just study but it is a different case now. You have to stand up and face reality, conquer that jungle!