Practical financial planning hacks for college graduates
The final year of college is probably the most overwhelming period of one's school life. So hectic that most seniors don't stop to think about their future investment plan. The last semester, especially, is a mixture of excitement and trepidation.
You have put in your time, and are ready to step into the working class, officially. In your mind, you have your first few paychecks budgeted for all the stuff you have desired but never got the money to buy.
But wait; there are other important things than those flashy things you have always wanted.
Save, save and save- You ask how? Well, this is how you do it. Once you start working, the first thing you should do is open two accounts: a checking account and a deposit account. The opening two of accounts is probably the best advice I got from my dad after college. I know I will thank him later.
Have a pre-planned budget- once you land your first job; ensure you have drafted a budget on how you want to use your money. Regardless of how much you earn and on what basis you get paid, you need to plan for your money. Decide how much you will be spending monthly and how much will be going into savings.
Avoid debt accumulation- I have a friend of who takes an overdraft every other month. His salary which is way higher than you would expect finishes up on the third day. Worse still, he is ever in debt with friends and fast money lending institutions. I know there are many others out there who are like my friend. You will be surprised to know that the things that put such a person into so much debt are not that important. Financial discipline is essential as you careen towards adulthood.
Health Insurance is a must- You may not be aware of the fact that an unexpected illness and associating costs ranks highest among the reasons the average person goes into debt. Folks, all over the world struggle to get out of poverty due to the lack of affordable health care and quality health services. I strongly recommend that you devote some attention and resources to taking care of your health needs. Most employers will offer quality true Medical plans with low "Out of pocket" expenses. You should take advantage of that.
It's never too early to start investing- Once you are all settled in your new life as an adult. It might be time to start thinking about investing in your future. Your company's 401k plan, if available is an awesome place to start. You can also seek out other investment options on your own. Feel free to become obsessed with your financial future and seek out investment options in sectors that you are passionate about and understand. Do not be afraid to read a lot about various investment strategies out there.