It may feel like time is on your side when you are in high school. However, the years soon fly by, and you are then in college. Then BAM, all of a sudden you are thrust out into the real world without a second to take it all in. Adulting creeps into play and it feels like you have to make a lot of responsible decisions that you may not be ready for. Life moves very fast, and this can be scary at times, but with a little planning today you can certainly set yourself up for a comfortable future. One of the best ways to ensure that warm future is to invest your money wisely after college. Use your fear of failure as a driving force and act now, follow our tips on how to invest money wisely after college and live a better life.
Work out your living costs
Work out how much cash you are going to need when you do make a big move into your own place. It can be quite costly, and you will need to make sacrifices in certain areas, but you can adjust and will survive! Assess whether or not your income will suffice compared to your outgoings. How much will your utility bills and everything else cost? Food bills, clothes, furnishings, transport and emergency funds are all now things you have to take charge of. Luckily, the sooner you do this, the better you will be able to manage them.
Make a budget
Once you have gone over all of your living costs and weighed up your outgoings, find a budget and stick to it each week. A little discipline goes a long way here, and it will condition you away from that horrifically unpredictable lifestyle of living paycheck to paycheck. If you are sick of being broke, see where you can cut back on unnecessary luxuries and put your money back in your pocket. Soon your friends will see how organized you are and hopefully begin to form similar habits.
To bolster the importance of cutting back on luxuries where you can, we’re mentioning this part twice! Cut back on the $5 coffee from Starbucks every day, cut back on partying every weekend, and watch the money roll into your savings. Keep your receipts for everything too, so you can stick to your budget plan and don’t steer off the beaten path.
Be your own retirement fund
Pension and retirement schemes are not as fruitful or rewarding to loyal workers as they were readily available in your parent’s generation. Start. Saving. Now. You may think that your early 20s give you plenty of time to open a savings account, but the reality will hit you sooner than you think as the years creep up on you. Even just start saving a dollar a day, so you can coach yourself into being in control of your finances and retire comfortably. You can invest your savings into stocks and shares, property, or even a simple savings account. However you do it, start now, before it’s too late.
Get a part-time job
It’s rather common for professionals to have a side gig now, so you can too! Use your extra time to earn some extra dollars wherever you can. If you can make them from your hobby or any special skills that you have, even better! Check out Craigslist and other local news ads to see what is available in your area; you may find the perfect job you can fit in around your full-time commitments! You can then have a bit of extra money to invest in something that will mature over time, such as stocks and shares.
Remember it is important to save and invest after college, but pay off debts at the same time. You can still have that rainy day fund, but consider where you’re going to keep it. A savings account is a safe bet, but you won’t make a lot of return on such a small percentage. Invest wisely and you could retire by the time you’re 40! If only…