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It is that time of the year again when graduates march to receive their diplomas and their colleges send them off to a new chapter of their lives. After college comes the real world. Most graduates are excited for the freedom--while this is absolutely a reason to be excited about, it is best to keep in mind the cliché saying, with freedom comes great responsibility, especially financially. After college, you are no longer entitled to an allowance, a dormitory or home and other necessities paid for and supplied for by your parents.

Financial freedom would be something totally new and you have to expect that it will not be a smooth learning process. Your transition from going to school, studying for tests and receiving an allowance to hunting for jobs, struggling to make ends meet and budgeting will be the hardest part that you would have to go through and learn from. Listed below are the finance tips for graduates that can effectively help you in figuring out how you should manage your finances once you start earning.

1. Educate yourself- The internet these days has become more available and more accessible than ever which gives you more reason to take advantage of the numerous free online finance courses available. These courses will cover everything you need to know about handling finances from investments to credit cards to assets.

2. Consider yourself dispensable- It doesn’t matter what contract you have with your company. Regardless of how hard working you are and how much you think you have contributed to the company, always consider yourself up for nomination to be laid off or fired. A lot of companies now are outsourcing and hiring people from overseas who can do the same job for less money, so to secure your position, it is suggested that you look for ways to gain an edge over others. You can do this by attending new trainings and seminars.

3. Set your own priorities- In a highly technological world, there is no need for you to get caught up with the fancy gadgets and cars especially if it is not what you actually desire. Do not get engulfed with the lifestyles of others and create your own according to what you yearn for instead. Decide on the kind of lifestyle that you want and try your best to be creative in getting what you want so you can save money and secure your financial future. Some money-conscious folks make use of coupons or trade services with their friends and acquaintances. These might seem small in terms of financial contributions but they will build up in the long run.

4. Learn how to budget and save- Fresh college graduates often overlook the need to save for their retirement. However, it is important that you start saving as early as now if you want your retirement to be worry-free. At this time and age, you still have the opportunity to take risks when it comes to investments. You can try your luck in stocks, which could gain you a higher return when you are finally ready to retire. Also consider making contributions to a Roth IRA because it is tax-free. If you have a 401(k) retirement account, make sure to take advantage of the matching scheme your company offers. Aside from that, it would be best to learn how to budget your salary so that you still have enough to be put in your savings account. Since you are still young and enjoying your own salary, you might still want to spend on cars, on night outs and vacation trips. These are all okay; the most important thing though, is to put a portion of your salary into your savings account. It doesn’t matter if the amount isn’t fixed every paycheck, what’s important is the fact that you are able to add to your savings which you could spend on unexpected emergencies concerning car repairs, health care, etc. If you are having a hard time saving, you can set up a specific savings account with your bank, which automatically deducts a portion of your salary and deposits the money directly to that account.

5. Credit score- Your credit score will be the deciding factor for lenders when the time comes that you wish to apply for a home or car loan. If you apply for a job which has a rather sensitive position, then employers would also take a look at your credit score to check for your credit history. Make an effort to take care of your credit score. Be responsible in paying off your debts and your loans and to make timely payments. Make it a habit as well to do a credit score check regularly so you can keep track of your financial activities and manage them better.

6. Credit cards- Getting your first credit card is a rewarding experience; however, you need to keep in mind that credit cards are not free money. You have to be totally responsible in paying them off not only on time but in full. Neglecting them will not only incur higher interest and penalty fees but will also damage your financial reputation.

As mentioned earlier, transitioning from being a college student to being an employee is hard especially regarding finances; but if you know how to start doing it right, you can rest assures that you will have a secure financial future.