After graduation, you will be confronted with the realities of life. You begin to have financial obligations and parents will start to limit giving money. This is done because you are supposed to earn your own living and be responsible for the new life. To help manage finances well. Here are some income and investment fund tips and ways to manage finances with new graduates:
Understanding What Money Means
If you don’t know how important money is, you will never be able to commit to managing it properly. For some young people, money is defined as an opportunity to buy more expensive cellphones, luxury meals, and vacations to attractive places.
If you have that kind of mindset, then your financial condition will get worse in the future. Be aware that the money spent on buying consumer goods will depreciate quickly.
Has 2 types of income
As a new graduate, you need to have 2 types of income, active and passive. The salary you get from working at a company is one example of an active income. On the other hand, passive income is income that is generated without making you have to be actively involved.
Investing and earning returns is one example of passive income that can be obtained. What investment is right for fresh graduates?
Due to fresh graduates just starting a career and do not have much experience they usually get a smaller income. Therefore, not all investment choices can be made. Investing in peer to peer lending is one option that can be made by new graduates.
Set Your Financial Goals
In the next step, you need to write your financial goals based on the time frame. Short-term goals are 1 – 5 years, for example, to pay for down payments for a car.
Furthermore, the medium-term goal is around 6-9 years, for example, to buy a house. Finally, long-term goals that are more than 10 years, for example for children’s college funds and pension funds.