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5 Financial Steps You Must Take After Getting Your First Job

So you got your first full-time job after graduating…what happens next? You may be lost and unfamiliar with the new responsibilities ahead. So, it is best to keep your finances in check. These steps will help:

1. ALLOCATE YOUR FINANCES BY BUDGETING

List down your expenses (i.e., fixed and variable), your income, and debts. Be aware of your cash flow for at least 2 weeks to help you set up a budget. Do not panic if you still have to pay your student loan because a budget will help you plan your income allocation.

2. REDUCE YOUR STUDENT LOAN

Do not wait until the lender notices you have graduated, start now. The earlier you start making payments, the more you will save. Furthermore, if you have a private loan that you took out when your credit score was lower, there is a potential to borrow again at lower rate.

3. THINK ABOUT YOUR FINANCIAL GOALS

You may be living from paycheck to paycheck at the first few months but how about 4 years from now? Think about your long-term financial goals and start planning your budget accordingly. You may consider buying a house, traveling, or having kids, so start setting aside some money every month towards your goals. This will lessen the load and the stress.

4. CONSIDER BUYING THE INSURANCE YOU NEED

Insurance maybe in the back of your mind because you are young, healthy, and you got your life ahead of you. But, it will be the best thing you have ever invested on once accidents and unforeseen things happen. It is cheaper to buy insurance now while you are young because the risks are low. Many employers offer group life and group disability insurance, so it is more affordable and cheap enough to consider.

5. OPEN YOUR RETIREMENT ACCOUNT

I stressed this issue so much before and I will say it again. The best time to start your retirement savings is before you hit 35 years old. Wouldn’t you want to have a relaxing life with no financial worries once you retire?

Image Credits: 401(K) 2012 via Flickr

Then, set aside at least 5-10% of your income per month for retirement fund. Also, avoid debt as much as possible and get educated about your finances. Know how and why you should save for retirement before your mid-30s here.

5 Clever Ways To Save Money on Coffee

Personal Finance Consultants may argue that the money you spend on small purchases (e.g. cup of Starbucks coffee) add up together and redirect towards a huge expenses. Assuming it costs $5 per cup, you are spending over $70 in a week. This is why you can save thousands of dollars in two years if you reduced your caffeine expense.

5 Clever Ways To Save Money on Coffee…

1. DO NOT EQUATE PRICE TO QUALITY

A blind taste test by New York Magazine’s Adam Platt showed that people prefer the inexpensive Dunkin Donuts coffee to the upscale Starbucks coffee. Even though it is expensive, it does not mean it tastes good. So, try the small coffee shops across your office.

Image Credits: Cherrysweetdeal via Flickr

2. MAKE YOUR OWN BREW

Coffee beans are cheaper than Starbucks; try to make your own to save a significant amount of money. If you are feeling creative, buy black coffee and add your own mixture of milk, cream, and sugar.

3. GIFT CARDS

Fish for discounted gift cards on Ebay or Carousell. This may not be worth your time if you are an occasional coffee drinker. But, if your caffeine habit is emptying your pocket, this tip will save you quite a bit.

4. LOOK FOR COFFEE DEALS ONLINE

Discover coffee or coffee maker deals online. Deals Singapore is currently having a 33% off deal on CEO Lingzhi Coffee while Groupon is having a 30% off deal on Philips Coffee Maker.

Image Credits: Alan Levine via Flickr

McDonalds may have “free coffee Mondays” so follow them on Facebook or Twitter.

5. REDUCE YOUR CAFFEINE INTAKE

Lastly, one sure-fire way to help you save a significant amount of money is to reduce your coffee intake. I know it takes a lot of willpower at first but it gets better as time passes.

Do it gradually, you cannot force this process or you will experience symptoms of withdrawal (i.e., headache, depression or nausea). Eliminate a cup per day.

Reducing your caffeine intake will not only increase your savings but it will also increase your survival. It decreases your risk of hypertension and increases calcium absorption to help keep your bones and teeth strong.

4 Ways to Boost Your Travel Fund

How can you pay for trips if your budget is too tight? Certainly, saving for travel money is not an easy task, which is why a sparkle of effort is needed to turn your dreams into reality.

Here are 4 Ways to Boost Your Travel Fund…

1. SELL YOUR UNWANTED OR UNUSED ITEMS ONLINE

Anything that is still in good condition and has a credible brand name will be flocked over by buyers. Even your old furniture can be sold in online sites such as Carousell and Gumtree. Nonetheless, you can always sell your precious items to your close family and friends through a Facebook group.

Rules on selling include: be honest with the product’s flaws, have a simple and accurate description, and charge right for postage.

The popular and safe websites (or mobile apps) for selling are:

a. eBay
b. Gumtree
c. Carousell
d. Facebook

2. INDULGE ON AIR MILEAGE CREDIT CARDS

Some companies such as Citibank or Virgin offer a significant amount of air miles every time you purchase. Once you have an air mileage credit card and use it abundantly (within your needs), you may even book your flight for free!

Image Credits: William Cho via Flickr

3. CONTROL YOUR UNNECESSARY BUYING INSTINCTS

Stop buying useless things that you do not need. Rethink if buying overpriced coffee rather than making your own coffee at work saves you more. Instead of buying lunch, pack your own lunch for at least 2 months. It will not only save more money, but it will reduce waste. It may seem simple, but these unnecessary expenses add up.

4. BE PATIENT

If you need to purchase something for your trip, wait for sale to come around or buy the last season’s model. When selling your items, you must be okay to accept an item price for less. You must practice the virtue of patience, as you wait for the right time before you may be able to travel.

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