Ten ways to spend your money in the first five years after graduating from college

A lot of things happen within the first five years after your graduation. If you are a recent graduate, then it’s your lucky day. You stand a better chance of managing your finance and building a strong foundation. Also, you don’t have to panic if you have been in the workforce for some years. You still have time to makes changes that will make a huge impact. So, let’s take a look at the list, crafted by domyhomework123.com writers:

Here are some ways in which you can plan your finances

Save as much as you can. Emergencies don’t announce their arrival. Losing a job, getting sick, or your truck breaking down can sometimes drain your finances. You are advised to have enough money to cover at least three months of expenses. But, you don’t need to strain, you can start small and grow with time. Examine your risks, availability of jobs, and job security to determine how much cushioning you need.

Consider buying health insurance. Your parent’s insurance won’t cover you for long. Healthcare can be very costly if you don’t have the means. Health insurance will cushion you from those emergency treatments that might occur.

Plan for retirement. If the pay package includes pensions plan, invest in an affordable retirement package that will make you old age comfortable. Take advantage of your employer’s contribution and grow your 401(k). Have a workable contribution plan of 10% to 15% of your net income.

Pay up all your student loans. Student loans normally take approximately ten years to complete. A student loan with other responsibilities can be overwhelming. Give yourself a target of when you wish to complete the loan then work towards it. Use a loan amortization calculator to ascertain how much interest you can save if you pay more than the required minimum.

Pay off your credit card debt. Use the same plan as a student loan repayment plan. Stay away from credit cards or rather opt for cards with manageable credit limits. Take advantage of the promotional offers and rewards that will save you some money.

Be flexible. Be prepared to adjust to newer lifestyles and accommodation plans when the need arises. Live within your means. Life can be unpredictable and sometimes force you to make drastic adjustments you wouldn’t consider.

Learn some soft skills that will earn you extra cash. You could save money from some household repairs that you could have done yourself. Try to acquire some practical skills that could prove helpful in the long run. Such skills may include Painting, cooking, plumbing, or changing a tire.

Negotiate. Negotiate your pay at times can be successful and get you more money. Several websites can analyze your expected pay based on the information you give.

Get to know how much your partner earns. A simple knowledge of your spouse’s pay will help you plan a better future based on realistic expectations. In case there are gaps, you can work towards achieving them. Engaging in such a conversation helps build a solid foundation in the relationship and makes it easier to achieve your goals.

Upgrade your education level. Find out whether getting a degree will help you meet your goal. Seek for advice from people ahead of you career-wise. Then establish how and where you are going to get the tuition fees and other related expenses. Do you have a scholarship? Is your employer paying for your tuition? Are you taking a loan? Consider such questions as you make a decision.

Summary

Be disciplined with your spending. Have a budget and keep track of your expenses. Use notebooks and digital trackers to keep a record for accountability purposes. Manage your priorities.

Please follow and like us:

129