So, your college days are behind you: welcome to the real world. You are no longer half adult and half child; you are now the genuine article, and it’s time to start making your mark in the world. Uppermost in your mind must be employment – finding the right future, because at this point it’s what some know as a sliding doors moment. Life is a long series of sliding doors moments, with some more important than others, encompassing not just careers but personal relationships and financial matters. Let’s look at one aspect: your personal finances, which can make the difference between a comfortable life and a difficult one.
Re-Examine Your Student Loan
Why do financial institutions give people loans? Out of the kindness of their hearts? Sure, a bank manager may get some sort of pleasure out of helping you get started, but ultimately, they want their money back over a fixed period, with interest, because that’s how they make money.
However, you don’t have to stay with the same lender forever. What you can do is shop around. You can look for a NaviRefi student loan refinance and see what options are available to you. If you’ve landed on your feet and found a job that enables you to pay the debt ahead of schedule, see how you can do that.
On the other hand, if you’re working but seeing no immediate signs of being comfortable financially, maybe you can find someone who will accept lower payments over a longer period. A debt-free life is an attractive proposition, but borrowing is extremely common and nothing to be ashamed of. It’s what a mortgage is: you want the house but don’t happen to have the hundreds of thousands or million+ that can buy it right away. Governments borrow money. Mega-successful businesses do it. All you must do is make sure you can handle the repayments.
Always Keep Your Receipts
It’s a minor point but can save aggravation when something doesn’t work out. You buy it, it breaks, and if you’ve got no proof, you might not get it replaced. It could be a mere few bucks, or it could knock you sideways. It’s always best to be covered, particularly if you pay cash for something. There are apps you can download to keep track of your receipts too so that you don’t have to physically organize them. This is just one of many ways you can use tech to grow your wealth and organize your strategies.
Start Building Your Credit Rating
Your credit rating is the financial side of your reputation. If you’re supposed to repay $xx per month and you do it without fail, you should be able to get credit to buy other things. So, if your student loan is reducing steadily, you may be deemed a good risk for buying a car on credit, or whatever the business you set up needs. A credit rating follows you around like your academic qualifications, except grades can’t be changed once you’ve got them, while your perceived creditworthiness can go up or down, depending on how you manage your finances.
Pay Your Credit Card in Full Every Month
Paying the minimum off your card(s) can provide short-term relief, but the interest adds up, so if you can possibly bring the balance back to zero every month, you’ll end up paying less in the long run.
Think About Retirement and Emergencies
Retirement may seem a long way off but ask any 60-year-old and they will tell you their life flew by and before they knew it, they were looking at the end of gainful employment and the need for a new source of income. During your glory years, your prime, putting money into a retirement fund can be a manageable chunk out of your salary every month that turns into an acceptable amount coming in every month. There’s the rainy day fund to consider too because life has a habit of throwing things at you when you least expect them, so having a stash set aside for emergencies can get you out of a sudden hole and really save your bacon.
Tips for Preparing For Retirement