- 1 1. Don’t go with costly Lifestyle
- 2 2. Check out bill due dates
- 3 3. Get Used to Making Student Loan Payments
- 4 4. Card payment Responsibly
- 5 5. Made a Plan for moving Back Home
- 6 6. Now You Need to Have An Emergency Fund
- 7 7. Create Sinking funds
- 8 8. You can Save for Retirement Now
- 9 9. Know your actual value
- 10 10. Get a Side income
You had guidance from professors, support from your parents and the camaraderie of your fellow students in school. Now you’re on your own, and it may feel overwhelming to navigate post-grad life — especially when it comes to managing your finances.
Don’t stress. I can help you for draft a budget Time to throw out that old co. (You did budget in college, right?)
1. Don’t go with costly Lifestyle
Hopefully, you’re earning more money than you did in school. Congrats! But use that salary increase for financial healthiness, not for financial destruction.
Don’t give in to the desire to buy all the things just because you’re making more money. Chances are you’ll also have more bills. And now’s a perfect time to get in the habit of saving money for the future (but we’ll get more into that later).
As you settle into your life post-college, give yourself time to adjust. Don’t go out and purchase an apartment’s worth of new furniture all at once.
The key is to live within your means — or even below your means in order to build a nice cushion of savings. It might take time to figure out what that looks like.
2. Check out bill due dates
In old days when students are use loans or scholarship for pay four months of room rent . Now you’ve got multiple bills in one month, each to a different service provider.
Keeping track of when each bill is due is vital. Automating the process — either by using your bank’s auto-pay service or opting into auto-pay with your utility company or cell phone provider — can be very helpful.
If you want to be more conscious of what’s going out of your checking account, set up calendar alerts to remind you of each bill’s due date and make the payment manually.
Set up one calendar alert a couple days before the due date for advanced warning and another alert the day the bill is due as a backup reminder in case you forgot to pay
Make sure to factor in when you get paid. If your employer pays you weekly, biweekly or semi-monthly, a budget based on how you’ll manage your cash flow from each paycheck may be more useful than a monthly budget.
3. Get Used to Making Student Loan Payments
If you borrowed money for college study , it’s time to pay up.
Your loan provider will likely give you a six-month grace period before you have to start paying back your student loans. This gives you time to plan how you’ll tackle the repayment, but if you want to start paying your student loans back immediately, that’s even better.
When you’re setting up your post-grad budget, make sure you’re factoring your student loan payment as a necessary expense. Check with your loan provider to see how much your minimum payments will be. If the amount seems unmanageable by you, talk to the loan provider that might be able to get on an income-based repayment plan.
If you have trouble finding a job or otherwise fall into hardship, a loan deferment or forbearance will temporarily pause repaying your student loan. But interest on the loan still might accrue during that period and you’d be left with more to pay back. You should only choose this option as a last resort.
4. Card payment Responsibly
Credit cards can be tricky. On one hand, they can help you build a positive credit score or earn reward points But use them irresponsibly and you can debt trap
A wise practice is to charge only what you know you can afford and pay your balance in full each month. You may want to start off with a secured credit card where you put down a deposit that serves as your line of credit.
If you are paying off credit card debt, keep in mind one thing don’t go with minimum payment my friend They’re the lowest you have to pay each month if you don’t want creditors to disturb you, then you will have to pay your monthly payment on time or else they will trust if you don’t pay monthly payment on time the creditors will apply the penalties on your monthly payment so you do your monthly payment on time so that you can avoid the penalty
Paying extra toward your debt, even if it’s just Rs 500 more, can significantly reduce how much you’ll pay in interest. If you actually read through your credit card statements, you should see a “minimum payment warning” section that explains how making only the minimum payment will raise your total debt and prolong the time it takes to pay it off. This premise of paying more than the minimum is true for paying off student loans, car loans or even your mortgage.
5. Made a Plan for moving Back Home
In this day and age, there really isn’t any shame in moving back home after college. What you’ll regret, however, is moving back home without a plan.
If you revert back to your high school days when Mom and Dad shouldered all the financial responsibility of day-to-day life, you could be setting yourself up for a more challenging transition when you do finally leave the home.
Discuss with your parents the expectations for covering household bills and expenses. If they insist on you not paying any rent, put aside what you would have paid to save up for your own place or build your emergency fund. Speaking of which …
6. Now You Need to Have An Emergency Fund
No one likes to prepare for the worst, but having money saved up in the event of an emergency is a crucial part of being financially secure.
Experts say you should have between three to six months of expenses saved in an emergency fund. But even just Rs 10,000 could be a lifesaver if your car breaks down or you need to fly out of town to attend a funeral.
You could automate your savings by directing a percentage of your paycheck to a savings account. Or you could use an app that auto your saving Digit’s algorithm analyzes your income and spending and determines safe amounts to transfer automatically to savings.
Even if you just stash Rs 2000 in a jar, start saving for emergencies now.
7. Create Sinking funds
A sinking fund is a pool of money you regularly add to over time to make a large expense more manageable.
Don’t just limit saving to your emergency fund. When you’re ready to upgrade to a new laptop or you’re hit with your annual car insurance bill, you’re going to wish you had saved up for them gradually.
Setting up sinking funds for those infrequent expenses will prevent you from scrambling. You may want to open separate savings accounts for your different short-term savings goals. If you’re person who saves all your money in one account, you should record how much you’re contributing towards your goal
8. You can Save for Retirement Now
I know you’re just beginning your career. Retirement is one of the last things that comes on your mind. But the earlier you start saving for retirement, the better off you’ll be.
A 22-year-old who saves Rs 200 a month at a growth rate of 6% will have Rs 371,428.72 by age 62. In comparison, someone who starts making those same retirement contributions at age 32 would have only Rs 189,739.65 by age 62. That 32-year-old would have to be saving nearly Rs 400 a month to have over Rs 370,000 by age 62.
9. Know your actual value
Budgeting puts the focus on how much money you spend and how much you save. But the amount of money you make matters just as much.
Though your salary is likely to grow throughout your career, how much you make early on can have significant weight on your lifetime earnings. It’s for that reason states like Delhi, Mumbai, New Jersey and a handful of others have outlawed employers asking about salary history on job applications.
If you start off making less than others at your level in your field, you’re at risk of earning less in subsequent jobs.
This is why it’s important to make sure you’re being offered a fair, competitive salary from the beginning. Sites like Glassdoor and Payscale provide salary estimates for different fields and companies so you won’t accept a low-ball offer.
10. Get a Side income
You don’t have to resign yourself to working 24/7, but there’s a lot to be said for picking up a side hustle when you’re still young and have ample time and energy.
You can use the extra income to pay down student loans or other debt. Or you could put it toward building that emergency fund or saving up to go on nice vacations. Having a side gig also gives you income to lean on if you ever find yourself out of a job, like if your company downsizes.
Another advantage of having a side hustle is you could develop skills and make connections to help you leverage a promotion or a better-paying job