TURNING 20 is an eventful time in life: it’s when college life mostly finishes and the dawn of a new decade begins. Once the graduation march comes to an end, it’s time to think about the so-called real life ahead.
Amid building careers or setting up businesses, fresh graduates only have their future in mind. Reaching that ideal future, however, takes a lot of steps – and properly managing finances plays a big role in the story.
Here are three money tips that will help fresh graduates reach financial success as early as possible:
Learn how to budget
It’s a basic reminder that – more often than not – is overlooked. Getting paid a full salary can be extremely exciting, especially for a fresh graduate. While it is tempting to splurge hard-earned cash in celebration, it is important to set some financial boundaries. The amount of one’s expenses for each month must be lower than the actual income. If there’s nothing left to save at the end of each month, cut back expenses to maintain a healthy and sustainable budget.
Build an emergency fund
It’s not just a career you’re supposed to be building – an emergency fund is equally important, too. That’s your pool of money set aside for unexpected expenses, like house repairs or sudden medical bills. It may sound more fun to spend money for a vacation rather than to keep it in a bank, but having an emergency fund gives peace of mind for anyone with an unforeseen financial expense.
A good amount for an emergency fund is at least six months’ worth of one’s living expenses.
Put your savings in a trustworthy bank
The best time to start saving money is today. This is why finding a trustworthy bank is an important assignment for new graduates. Money kept aside for savings or for retirement can earn interest in a good bank. Whether you work in the country or you’ve chosen to pursue your dreams abroad, looking for a trustworthy bank to store your savings is a must. For those working overseas, finding a reliable way to save your money in Philippine Peso need not be a problem with a partner bank with a wide network of branches. (GMA News)