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Beware of the World Temptation: Financial Advice for Fresh Graduates!

Key Points

  1. Learn to self control, if possible!
  2. Clearing your debt is one of the ways.
  3. Start saving for a rainy day.
  4. You should always plan and track your budget flow.
  5. Be wary of the current lifestyle.
  6. Starting a low-risk investment.

Being a fresh graduate is the best thing ever because you will enter the real world and begin to receive your monthly salary, which means you will be able to buy whatever you want. But did you know that some recent graduates are prone to overspending and have poor financial management? Some recent graduates do not even have a backup plan in place until the end of the month, which leads them to be thrifty because they do not have enough money.

Even if you have a steady job with a good salary, you should be aware of your wants and your needs. Food, rent, gas, utilities, insurance, and other necessities are expenses that are required for you to live and work. Wants, on the other hand, are expenses that help you live more comfortably, such as items purchased for fun or leisure.

It is not that you cannot spend your money on the things you desire. You certainly can. However, only purchase what is absolutely necessary and will not exceed your current budget. We’ve put together some good and useful tips for a recent graduate like you to save money while having fun.

1. Learn to Self-Control

When it comes to money, especially when we have our own monthly salary, we tend to overspend because we know we have enough money to buy whatever we want, right? However, in order to save money at such a young age, you must first learn how to self-control the flow of your spending and money. Trust me, if you can keep it under control, you can save more than you can imagine.

2. Clearing your bebt is one of the ways

If you have a debt that needs to be paid off, take advantage of this opportunity to do so right away. You undoubtedly want to get rid of high-interest debt as soon as possible, such as an outstanding credit card debt or a car loan, as well as your PTPTN if you took it during your university education. Particularly for credit card debt or any other loan debt, the debt frequently charges extremely high interest rates and includes numerous additional fees. This is why, if you do not resolve it quickly or on time, you will suffer.

Because doing so allows you to save more money in the future once you are out of debt and have both the mental space and the money to begin saving.

3. Start saving for a rainy day

It’s never too early to start planning for your future! A rainy day fund is usually smaller than an emergency savings account, but it provides peace of mind knowing that you have this extra cash available if needed. Experts recommend setting aside 10% or more each month and keeping three to six months of living expenses in it. In order to make sure the money will be there when necessary.

It is always better to be prepared for anything than to hope it doesn’t happen. The worst that can occur from not having an emergency or rainy fund at the ready are financial setbacks. You might need those funds one day, and it will lessen your burden during that time.

4. Plan and track your budget flow

I’m sure some of you already allocate your monthly budget and keep track of your expenses. Tracking your expenses can help you gain control of your spending and identify areas for improvement. Tracking your expenses will allow you to manage your cash flow on a regular basis, achieve your personal goals, keep track of your savings and debts, and much more.

However, if you want to learn about other budgeting techniques besides the nifty 50/30/20 budgeting technique, click here for more budgeting techniques. It can go a long way toward determining what you can afford now and in the future.

5. Be wary of the current lifestyle

I know that nowadays, if we look around, people have begun to show their lifestyle to the public or on social media. As a result, when they start earning, young people tend to follow the trend or lifestyle and carelessly upgrade their lifestyle. They will buy high fashion brand items at the designer boutique, eat at a fancy restaurant, buy a luxury car, and so on until they can no longer control their cash flow.

It is not that you can’t upgrade your lifestyle or spend your earnings to buy whatever you want, but you must make a conscious decision about your cash flow to ensure you are not living beyond your means. Those seemingly insignificant but unintentional purchases can and will harm your finances.

6. Starting a low-risk investment

Last but not least, you can begin slowly growing and saving your money by making a low-risk investment. There are many low-risk investments available today, such as Amanah Saham Nasional Berhad (ASB), Employees Provident Fund (EPF), Bonds, and others. Investing early can provide you with significant benefits and opportunities for compound interest to rapidly increase your finances.

You can also learn about the various types of investments available here

Verdict

As a result, it is critical for a recent graduate like you to understand how to save money not only in the short term but also in the long term. Saving money and knowing what your priorities are important for managing your cash flow in and out. And, of course, you don’t want to be broke, have insufficient funds, or, even worse, be saddled with a large debt as a result of your spending. Remember that money is not easy to earn because it necessitates your hard work. That is why, be frugal and avoid overspending.

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