Financial management: Start from walking out of school

Financial management: Start from walking out of school (Alberta Times) You are finally independent. When you really graduate, are you a little excited or a little panicked? …

Financial management: starting from school (Alberta Times) You are finally independent. When you graduate, are you a little excited and a little panicked? First, you need a job. Here are some helpful suggestions: 1. Buy an outfit and a pair of shoes, get your hair trimmed and be ready for the interview. 2． Instead of spending money on resume templates, look for free guides online. 3． Find out if there are any alumni from your school nearby. Alumni are a great source of information and are eager to help recent graduates. 4. Think carefully before accepting a job that is not related to your major. Although it pays better, it may hinder your career and you may not be happy doing the job. After you find a job, you can breathe a little easier, but don't forget: 1. You may make more money than you expected, but the government will also take a large part of it. Don’t rush to spend money before you receive your first pot of gold. 2. As your salary and investments increase, tax filing becomes more and more troublesome. Plan to deduct some of your funds. 3. Remember that your career is your most precious possession. Running a business requires more attention than running an investment. Housing: More than 30% of graduates will live with their parents after graduation in order to save money. If this is what you plan to do, then you must learn to be self-disciplined and not spend the "saved" money indiscriminately. Some things you must know: 1. If you are in a new city, open a bank account before looking for an apartment. Landlords usually require tenants to pay the first month's rent and security deposit by certified check or money order. 2. Be prepared to pay a down payment when renting, read the lease carefully before signing, and don’t lie on your credit history. 3. Find a roommate. Just be clear that this is just a transaction, so clarify responsibilities upfront, assign chores, and agree on how to use the phone. 4. Consider subletting for a period of time first. Websites such as Craigslist.com can help you find people willing to rent an apartment and provide you with pricing information. Budgeting is Key Once you have the necessary arrangements in place, the next step is to create a budget to understand your financial situation and know where to go next. A good method is the "60% solution". The so-called 60% means that all necessary expenses are 60% of the pre-tax income. The remaining 40% can be allocated to long-term savings plans or debt repayments, short-term personal goals, and entertainment expenses. Other budget items to consider: 1. Car insurance is expensive and critical. So the easiest way to save money is to drive carefully. 2. Personal daily living expenses are about 150 yuan per month. If you eat out often or buy processed and frozen foods, they are more expensive, so learn to cook. 3. Make a budget and pay off your credit card loans. Compound interest is your number one enemy. 4. Don’t put off paying off your student loans. Student loans also carry interest and are not forgiven. If you ever declare bankruptcy, your student loans will still have to be repaid. But there’s no need to pay off your student loans too early, because student loan interest rates are lower than credit card loans. Saving Money You often have many reasons not to save money, but you'll never find a time like now when you have as much time to save for retirement or housing, so start saving now, even just a little bit. 1. Register the company’s Registered Retirement Savings Plan (RRSP). Most companies offer you an RRSP, but if you don't sign up, you're throwing away this free "cake." 2. Be bold. Put 90% of your investment in stocks, and historically it has grown by 10% every year. 3. Prepare an emergency fund so you don't end up in debt if your car totals, your roommate can't pay the rent, or you face other financial difficulties. Ideally, you must have 3 months of living expenses saved. 4. Save a small amount of money. Throw the fractions of 1 yuan, 2 yuan, and 5 yuan into your piggy bank. Accumulate a little and make a lot, this is another fortune for you. Be mindful of your spending and start saving now. Some suggestions: 1. Buy a used car. The most expensive period of time for a car is the first 10,000 kilometers, so let others complete this distance for you first. 2. Be careful about luxury consumption. A 20-ounce bottle of water per day adds up to $365 per year. The total daily coffee consumption is 400 yuan, the daily vending machine fast food is another 300 yuan, and the weekly manicure fee adds up to more than 1,000 yuan a year. Pack your lunch and save over $2,000 a year. 3. Wait for the price of small devices to drop before buying them. 4. Don’t fall into debt. Eating out, going to the movies, etc. all cost a lot of money, so instead go for a picnic, go hiking, read a book, or go to an arts festival. 5. When the wedding invitations come, don’t let the gifts “eat up” your budget. Get creative or give a group gift. 6. Don’t take shortcuts. Payday loans and unrealistic investments lead to bankruptcy.