New graduates have to consider so many things before they enter the new world of money, work and bills. Dealing this can be as daunting as your very first day on campus - you will be up against new challenges and even a little mistake will become the difference between your success and failure. Individuals should have complete understanding of different concepts related to their financial health, and the most important thing is to try to save money from your very first day at work.
You need to have money to cope with the challenges posed by the new professional life. It's important to point out that for many new graduates, leaving college would mean they now have to repay their loans - the average graduate usually have around $19,000 in student debt. These loans have a grace period, generally no longer than six months. You will have to play with numbers to save enough money to make regular payments. Moreover, it takes time and money to find a new job and settle in a new location. It means most of your savings will be gone in no time; therefore, it's important to ensure that you don't forget to keep some money aside as soon as you start your new job.
For today's college graduates, it has never been so important to develop early savings habits, all thanks to the uncertain future of Social Security and the rapid disappearance of traditional pensions. If you don't start worrying about your financial future now, you will find yourself in all sorts of issues as you approach retirement. In most industries, workers are now responsible for their own retirement savings, which means the sooner you start learning about budgeting and savings, the higher will be the chances of you getting the knowledge to make appropriate investment and savings decisions.
Here, it is crucial to mention that some professionals need to be more careful with the way they plan their savings. Considering the current recession and frazzled economy, it's never a surprise to lose your job for no apparent reason. Moreover, when recession hits, most companies tend to sack their employees from âcost centersâ, which are usually customer service, human resource and even marketing departments. You need to ensure that you offer your services to a âprofit centerâ, like manufacturing or sales and help generate revenues. If this is not the case, you should always work more passionately toward saving money right from the word go - that is - from your first day on job.
Now, it's true that you should save money, but how exactly can you do it? Even if you don't consider yourself a great budgeter, you should still take some steps to get on the right financial track. Taking a right financial start is all that matters, and you never get a second chance to make things right. Therefore, you're advised to move smartly. For instance, you should try to keep a list of money you spend in home or office. The best thing is to divide your expenditures into separate categories, including fuel, rent, clothing, and food. Once you maintain a record, you will find it a lot easier to improve your financial position.
At the end of the month, you need to see your savings. If there's nothing, check your list and spot ways to economize. You may be spending too much on soft drinks, entertainment or new clothes. Speaking of money you spend in your office, it's always important to know what you spend on your lunch. A few bucks here, a few there and before you even know it, lunch takes a large bite out of your pocket book. Therefore, it may prove more economical to carry a lunch to work, as it can save hundreds if not thousands of dollars a year. So, be smart and learn to save early in your career!