How To Manage Finances - 3 Easy Tips For Fresh Graduate

Money management tips financial planning

How to manage finances or a monthly salary for those of you who are fresh graduates? After graduating from school or college, the thing you are looking forward to is the first day of work.

It feels like all the tiredness you feel after studying for years will disappear after receiving a job call from the dream company. After a month of work, you will enjoy your first salary. Fun, right?

Everyone has their own way to spend their first salary. Some give it to their parents, and some use it to treat friends.

However, it would be wise if you learn to manage finances even before receiving your first salary. What are the benefits of learning to manage finances?

By managing finances, it is unlikely that you will run out of money in the middle of the month. In addition, you can also save so that your old age is more secure.

The ability to manage finances will also be very useful when you travel far away. However, take it easy! Managing finances doesn’t mean you shouldn’t have fun or have to tighten your belt all month, really.

On the contrary, managing finances will make you calmer and happier in life. Even though it sounds scary, actually the process of managing finances for fresh graduates is not that difficult. So, what are the tips?

How To Manage Finances – 3 Easy Tips For Fresh Graduate

1. Distinguish between needs and wants

When managing finances, it is important for you to separate needs and wants. Of course, you must prioritize primary needs, such as clothing, shelter and food.

After that, you can plan a budget for secondary and tertiary needs. How do you differentiate between needs and wants?

To put it simple, if you can still live without buying certain things, that is becoming desire. For example, eating is a primary need, while snacking is a secondary or even tertiary need.

2. Prepare funds for emergency needs

In this era of uncertainty, we must always be prepared to face everything, including financial crises. How to prepare?

One way is to save consistently. When receiving a salary, set aside at least 10-20 percent of your monthly salary for unexpected needs.

With this preparation, you will not be scrambling to find additional money when an emergency strikes.

3. Don’t forget to share

Remember the saying “Upper Hand is Better than Lower Hand”? This proverb is very suitable to be applied when you are managing salary.

Always set aside a little of your income to help others who are not as fortunate as you. You can share in various ways, such as donating directly to those in need or via crowd-funding sites.

You can also share with your family members, such as parents, younger siblings, or older siblings. They will surely gladly accept your good intentions.

Simple isn’t it? Of course, every time you receive a salary, your ability to manage finances will get better.

You will increasingly be able to distinguish between needs and wants, as well as set financial targets.