Thursday, June 17, 2010

Financial Planning Tips for Fresh College Graduates | Things to Remember.

So you landed on your first job and you finished college a few months ago with sheer luck of finding your ideal job in the many companies and job fair you had attended, participated and applied with. Now that you are in the real world and out of the four corners of the classrooms from your alma mater. I congratulate you for stepping out of your comfort zone and becoming a more mature person on taking the responsibilities of finding employment even if it is a temporary or permanent job that you applied to for yourself or your family.

You are very excited on your first "sweldo" or salary as a trainee on the company that hired you even if it is just enough for a single person. But let me ask you something, can you survive without asking for your parents for extra money? Yes it is possible, when working out a budget plan and being frugal would be ideal training experience for being independent from your parents. But parents are still willing to help you on feet and spare some cash on your first few months at work till you are already receiving your monthly sweldo. It will be hard fought decisions of weighing the pros and cons of needs and wants. There is nothing wrong in sipping a one cup of Starbucks coffee once a week ore watch a  very good movie with your friends but if you do this often like everyday after work you will eventually end up a hole in your wallet or pocket with your cash out flowing to expenses in which but in economic sense, spending encourages economic activity in the market. It is also a big compliment to your parents once you received your first sweldo with your family as long as you treat them on a modest restaurant or buy a carry out food that is within your budget.

1. Change your mindset - It is ideal for young people to rethink and reprogram about their understanding on money. At school, we were never taught about principles of personal investing but think again of re-educating yourself about personal finance.
2. Create a budget plan - This one is a very hard discipline to follow and it requires a lot of planning and monitoring on your spending on the next 15 days before your salary runs out.
3. Open a bank account - Better to start up opening a bank account with booklet not the ATM type of account because you might end up spending your money. This is just the beginning of building your cash reserves in times of emergency.
4. Save a percentage of your earnings - Once, you open that booklet bank account. You better start saving some of your cash. Let say you earn about PhP 12,000.00 per month net, you can start by PhP 500.00 to PhP 1,000.00. When you get used to the regimen of saving that 500 to 1,000 pesos then increase to a much bigger amount like 1,500 pesos to 2,000.00 pesos.
5. Stay away from temptations - There are lots of temptation around, for women shopping is one reason they get indebted without thinking then feeling guilty at the end. Men also have lots of temptation from vices that are unproductive and destructive. There is nothing wrong in joining up for a night  of a festive mood and you are feeling that party swing. Yet you can go out as long you have done careful study and plan on the cash you will be spending as long as you stick with your budget limit. 
6. Be open minded - Keep learning, read new books on personal finance investments or attend enriching seminars which can be useful in the near future. If you need advise from a financial advisor or consultant seek help immediately.
7. Dreams have deadlines - Remember that every dreams have deadlines in which goals should be accomplished on a given timetable. From setting your career, buying your first car or owning a new gadget etc.
I know that some of us have dreams of becoming big and live a care free life but then again we face the reality that high maintenance lifestyle is not feasible unless you are ultra rich person but if you study the cases of celebrities, their lives become miserable and desperate.

A responsible youth  is mature enough in their minds with high hopes and dream even if reality bites in that it will be a long hard campaign to succeed. Being frugal is the start if you want to reap the fruits of your labor in the future.  Don't forget that losing that glimmer of hope can make you pessimistic about your life, your job and career.


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