Graduating is an incredibly exciting time. After all those years scrimping and saving just so you can claw your way through university, you will now enter the world of work and will hopefully, for the first time have disposable income. It can be tempting to really splurge, after all those years of living on next to nothing you might feel like you deserve it. The trouble is, these are the years that set your financial future and really should be focussing on building a stable base. Read on to find the smart moves that you can make to help you achieve financial stability.
Budget
Remember that you are already in debt with your student loans, the last thing that you want is to build up even more. Once you have an income coming in, you will need to set yourself a budget. Really think about the essentials and how much they will cost so that you can see how much you can realistically afford to spend on little luxuries. You should always set aside an amount that you can save to. You might not be thinking about it right now but putting down a deposit on your first home or growing a family isn’t too far into the future. You can always find advice on creating and sticking to a budget online. If you do not have budget then you can get your notes from HSSLIVE Kerala Board Plus One and Plus Two Notes online.
Think about the future
We know that right now retirement seems far away but making an early start will always make saving for this part of your life easier. Your employer will have a pension scheme that you could join, although this might not meet all of your needs. If you are self-employed or have the income that enables you to save a bit more you could always consider a private pension. You could also use investing as a tool to help you raise more money for your eventual retirement. If you start while you are young, you could build up a healthy nest egg through compound interest. This is about earning interest on not only your initial investment but also the interest that you have earned on that. If you have some money spare consider investing in a stocks and shares ISA, this high-interest savings account will help get you started.
Think of your student loan as a tax
We understand that it can be daunting to look at those student loan letters because the amounts that you owe can be incredibly depressing. The best way to think about student loans, however, is not as debt but as a tax. Remember, you will only have to repay your loan when you earn over £1577 a month (correct for 2019/20 tax year) and that if you don’t repay the loan after 30 years it is written off. It is possible to make voluntary repayments but this doesn’t have any benefit on your individual financial position. Instead, focus on building up your own savings and let the loan repayments look after themselves directly through your payroll scheme.
Now that you are earning an income start to make the right financial choices so that you can enjoy the future. Saving a little now will help ensure that your future is secure.
About the author: Nitin Maheta is the Founder of top10ratelist.com and a tech geek. Besides blogging he love reading books, Learning new things, and Hanging out with friends.
