Something Serious : Financial Tips for Fresh Graduates

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Do you live in a developed country and your summer job salary can support you to travel around South East Asia for the rest of the year?

Or, do you live in a developing country and you don’t know how many years of saving will be enough to support your two weeks trip to USA or Europe?

 No matter you falls under the first category or the second one, if you are still reading this paragraph, reading financial tips from someone who put down her scrambling thoughts under a title “Something Serious” then you are exactly the person who needs to read this post because I think you don’t give financial planning some serious thoughts as it should be.

 I am currently taking my CFP (Certified Financial Planner) course during the weekend. I will share some tips that will prevent you from the shock that I had when I saw the amount I get after 5 years  put some money in TD (Time Deposits), unfortunately, it was not a good shock.

1. Make a financial goal – any goal

I am pretty good at saving. During my early years of working, my salary was transferred to a local bank. I took out 75% of it for living expense and leave out the 25%. I did not have credit card during the early days. After 4 years, I can pay for my own travel trip to Spain and have nice travel trip(s) each year after.

Looked like things are going good, I have no debt, never run out of money, so there is nothing I should change, right? Wrong…..I did not make any plan. That is why I put all my savings in Savings Account or Time Deposits. After few years, knowing what I know now, I should have planned earlier.

So, if after you read this, you start thinking of having a financial goal, writing down what do you want to use your money for and by when, I have accomplished the reason I write down this post.

Example of financial goals such as: $$$ money to go for a diving trip in Indonesia for a month next year, $$$ to pay for a wedding in 3 years, $$$ for down payment of house in five years, etc etc….

Important tips in writing goals: Know what you want to do, make assumption or research on how much money that it will need and write down the timeline when you want that to happen.   

2. Have an emergency fund

For a single soul who does not have anyone to support except him/her self, put 3 – 6 months of monthly expense in Savings Account or TD.  This will be your first financial goal.

Tips: If you don’t know it already, Samsung S4 discount or any other discounts that will end this week does not fall under emergency

3.Improve your financial knowledge

There are so many instruments that can help you achieve your goal. Should I invest in gold, mutual funds, property, or what? Whatever you do, remember not to put your eggs in one basket (never invest all your money in one place).

If you are too busy (or lazy?) to learn about all of these financial stuffs, you can always hire a financial consultant to help you.

Most important tip:

Start your planning as early as right now (if you have not done it already). 

Thank you for staying awake, once again, Start Planning !

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