6 Financial Tips for Fresh Graduates to Avoid Being Broke at the End of the Month

After you graduate college and start working, it is important to learn how to be independent, both emotionally and financially. It can be difficult at first since you are not used to it yet, but it is essential to start good financial habits early on. Here are six financial tips for fresh graduates to help you avoid being broke at the end of the month.

Open a Savings Account Immediately
Many fresh graduates wonder about how to save money when their monthly salaries are still very little. Remember, it's not about how much you earn, but how you manage your finances. If you are disciplined enough, you can always use the salary you get as a fresh graduate for various purposes.

One of the most basic types of savings is emergency savings. Starting from now, you should try to build up your emergency savings during your first year as an employee. As a fresh graduate, relatively you don’t have many needs yet so you can set aside more money for your savings. With the current advances in digital banking technology, opening a new savings account can be done easily through PermataMobile X.

Starting a Low-Risk Investment
It's never too late to start managing your finances, especially through investing. However, it is better to start early to reap maximum benefits. As a fresh graduate, you can try to start investing in minimal-risk instruments.

Starting early as a fresh graduate provides great benefits and opportunities for compound interest to increase your finances quickly. One of the most recommended minimal risk investments is a fixed deposit. Offered by many banks, this financial instrument has higher interest rates than ordinary savings accounts. Today's digital banking technology has also allowed us to open deposits anytime and anywhere.

Wants vs. Needs
The ability to distinguish between wants and needs is crucial to help you manage your finances better. Necessities are expenses that are important for you to be able to live and work, such as food, rent, gas, electricity, insurance, and so on. Meanwhile, wants are expenses that help you live more comfortably, including items you buy for fun or leisure.

You can live without what you want, but you will enjoy life more when you have it. For example, food is a necessity, but having lunch outside every day is a want. It's a good idea to identify different examples of wanting vs. needing. In addition to that, try not to be too impulsive when it comes to shopping so that you can manage your finances more wisely.

Don't Hesitate to Have Insurance
Insurance is seen as a daunting task for many fresh graduates since it is not easy to understand the different types of insurance plans to buy. When you are just entering the work field, your greatest financial asset is youth and the ability to work. So, dealing with any health issues will be one of your biggest risks in pursuing a long and successful career.

To prepare yourself for unexpected health problems, don't hesitate to apply for insurance. You can focus on the most important insurance first, such as hospitalization insurance that is affordable and likely to be very helpful if you have an accident or are sick. Make sure you consider the type of insurance you need the most by gathering proper information.

Create a Detailed Monthly Budget
A monthly budget is a plan for how you will spend your money each month. Monthly budgets are popular since many recurring expenses such as rent, utilities, credit card payments, and other loan payments occur every month. So, spare some time to make a detailed monthly budget.

Ideally, your monthly budget should be less than your monthly salary, so you have money to save. The purpose of budgeting is to make it easier for you to plan expenses before they occur. A budget can also make you more careful about how you spend your money and help to prioritize spending. With online banking like mobile banking or internet banking, you can check your expenses and income easily. For instance, you can use PermataMobile X to check your expenses in the last 12
months.

Focus on Your Lifestyle, Not Others
Another financial tip for fresh graduates is to focus on your lifestyle, not others. Don't spend large sums of money just because you want to keep up with trends. Avoid wasteful habits that can make your finances overdrawn.

If your co-workers buy branded goods at a price of millions, you don't have to do the same just because you don't want to be left behind. This is not the time to compare yourself to others. You have to focus on yourself to build a better future.

Those were some financial tips for fresh graduates to avoid being broke at the end of the month. To help you manage your finances more easily, don't forget to use PermataMobile X. Just make sure your internet connection works and you can enjoy various conveniences of digital banking transactions from PermataBank anytime and anywhere. You can open more than one savings account for various posts, such as savings for emergency funds, accounts for investments, or savings for certain bucket lists. Everything can be managed in PermataMobile X online banking application!