ADULTING 101: Four financial tips for fresh college grads
Working to support yourself sets you up for independence and maturity. Having a source of income and being productive are essential. It’s the beginning of your relationship with money as an adult. Of course, others may have entrepreneurial inclinations. So whether it is a job or a business, the idea is to have the means to earn. 2. Keep a grip on your finances If you’re living independently, you will be paying for your own food, utilities, rent, and other things you never worried about when you were still studying and living with your parents.
Learn how to spend wisely, and clearly identify needs and wants so you can fine-tune your budget. Make a habit of listing your expenses to make it easy for you to track where your money goes. Knowing how much you spend in, say, a month, is important to help you create a realistic budget that works for you. 3. Start investing
There are many options for investments. One good way to invest is through mutual funds. These are professionally managed funds invested in a portfolio of various financial instruments or assets such as shares of stock of companies and bonds. Various investment products could yield high returns for your money. These days, you can start investing in a mutual fund with as little as P5,000. The important thing here is to invest regularly. College graduates are in that sweet spot in their investing life cycle because they are young, and they have a lot of time to make their money grow. 4. Enroll in an automatic investment plan The effort of setting aside a portion of your savings monthly to your investment may be a struggle at first.
To make investing easier, enroll in a Regular Subscription Plan. This way, you can schedule your monthly contribution to your investment for as low as P1,000. Further build your wealth through a non-hassle transaction, as you can easily enroll in these automatic savings schemes. This way, you save and invest a decent amount without feeling the financial burden. For more information about ALFM Mutual Funds, and how to start your adult life on the right financial footing, visit www.alfmmutualfunds.com.