November 17, 2016 | Leave a comment After completing graduation, all students should take an initiative to manage their finances on their own. It’s quite common that, just after graduation, the first thing that most students want is to experience their financial freedom through earn some money. Especially those students who get multiple credit cards in their pocket should know how to manage them carefully so that do not incur debt. However, financial literacy is one of the biggest learning that everyone should be taught at their initial stage. So, fresh graduates who are going to start their professional life should follow some basic financial knowledge in order to make the financial future bright. 1. It’s time to plan your finance As you’ve completed your graduation and now you’re on your own, you need to move towards the financial goals by starting off with a solid financial plan. And to do this, you need to set up a budget that you can maintain on a regular basis. You must check whether or not your day-to-day spending plan is hurting your finances or benefiting it. Try to get the track your expenditures and improve on your spending habits so that you can make the most out of your finances. 2. Know how to use plastics It’s your responsibility to educate yourself on how to use a credit card before jumping into the credit card world. You should not use the credit card for every little purchase because you may face difficulty when the credit card bill comes. If you shop around recklessly, you will not be able to make the monthly payments towards your card and this will push you towards the debt trap. 3. Adopt the money saving habit Some people are born saver. They know all possible secrets to saving thousand of the dollar without sacrificing their lifestyle. But, if you’re not among these lucky people, then you need to adopt the habit to save money. It should be on a regular basis no matter how tough it is. Because this is probably the best way to manage personal finances irrespective of your age or financial condition. Try to save every bit of money so that you have enough to repay your financial obligations. Remember, you should save at least 10% of the income that you earn from it. 4. Live within your means Though this seems to be quite tough for young people, but this is very important to get an organized financial life forever. Unless you spend an amount that is less than what you earn in a month. And you can never save any money which you can use for emergency, reduce debt amount. 5. Try to build credit The credit score is the most important factor that is taken into consideration by your job employer when they think of offering you a good job. So, establishing new credit by taking out a secured credit card is very important since you’re on a beginner level. Though Maintaining the credit card payments on time is also important to keep the good credit history. 6. Think about investment early Once you get a job and start earning money, you should save money as well as invest money to secure your future. Remember, investment is a magic stick which can make you earn huge amount of money if you do that in the right way. There are many types of investment such as retirement investment options like 401(k), IRAs and Roth IRAs and some other investment options like stocks, bonds, and mutual funds. You should be careful before investing in any of these segments. However, make sure that you have enough knowledge before investing your hard earned money. You should play the safe game and get well informed about the current market. 7. Do pay off the bills on time Credit card debt is quite popular among young generation. As they’re mostly oblivious of the aftereffects of the high-interest debt, which was the outcome of extravagant life they lead. So, if you don’t want to sink into the sea of debt, then you must be regular on bill payment each time. For this, set the timer or get a set up of ECS (electronic clearing system) in order to pay the bill on time. Bottom lines Eric Tyson, economist and author of Personal Finance for Dummies, said, “some kids start off on the wrong foot and want to live above their means. If you do that, you’re just setting yourself up for long-term financial problems.” Therefore, if you’ve just completed your graduation and get a good job, make sure that you’re dealing the new financial life responsibly. Money is supposed to be a part of your enjoyment, but make sure you’re taking all the efforts to save some bucks for future use as well. So, don’t forget to live a frugal life. For instance, low-cost entertainment, eat out less to live your life happily and also save your bucks at the same time.