Landing your first job after graduating from university is a monumental event in life. While it does relieve a huge weight off of your shoulders, it’s important to get off on the right foot and begin your career making well-planned financial decisions. Here are some tips to give you an idea of where to get started on financial planning.

The Warren-nacci Sequence. A straightforward rule to follow when trying to sort out finances is the 50/30/20 rule which was popularised by Senator Elizabeth Warren. The goal is to set aside 50% of your income to pay for necessities such as utility bills, loans, insurance, and groceries. BUBBLE TEA AND NETFLIX ARE NOT NECESSITIES. Those are wants, and you should strive to spend about 30% or less of your income on them. Allocate the remaining 20% for your savings and investments for long term goals such as travelling, a wedding, and a Rainy Day Fund.

Next, be willing to sacrifice. Your willingness to sacrifice short-term pleasures in order to secure your future and achieve long-term goals is paramount when it comes to good financial management. Contrary to what many may believe, this doesn’t necessarily mean that you have to restrict yourself to living a close to ascetic lifestyle. Buy good coffee grounds and make yourself a cup at home every morning for a miniscule fraction of the price you would pay at a café. Shop for clothes at end-of-season clearance sales. Cook hearty meals for yourself and loved ones. Just because you can afford that doesn’t mean you should buy it. Spend your money wisely, start prioritising your needs and wants.

In a nutshell, all it really takes to lead a wholesome life without breaking the bank is determination, effort, and consistency paired with a decent knowledge of basic financial management. Although there is ample information readily available on the internet, do not shy away from meeting with a financial planner for guidance. A wise man once said its not your salary that makes you rich but your spending habits.

Sangeetha Ravindran