3 Money Tips for Recent College Graduates

With the passage of college examination season, college grads are about to embark on a new phase of their life journey.


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It is important that college grads develop positive money habits

And as part of that journey, getting a job and earning an income will feature in a big way. But, since financial education is still not part of the national curriculum in schools or at college, we wanted to share a few important money tips to help you along your way.

  1. Your relationship with money matters…a lot! This is not just about how you manage your money…it is how it can have a big impact on your day-to-day life decisions in the future. Financial services use a credit register to track how you borrow and repay loans and that information is being increasingly used to make employment, property lease, insurance premium rates, credit and even some hospital admission decisions based on your credit score. So, if you borrow money, make sure you make repayments on time and as agreed. If you fail to do so, this can have a major negative impact here in Ireland and beyond!
  2. Income is extremely precious – protect it! Your ability to earn an income is your most valuable resource. But since your time is limited, so will be your ability to earn. So the key is ensuring you maximize your earning ability and protect your income. One way of achieving this is by tracking your spending and having a plan to save. But to make this a little easier, consider the rule of 50:30:20. 50% for life needs (shelter, food etc), 30% for wants (yes, you need to live a little) so have a little fun…but not so much that you forget the last piece. And there is the 20% for savings. Yes, get into a habit of saving. The sooner you do, the sooner you will not miss that extra cash…or spend it!
  3. Pay off student debt quickly – and this piece of advice does not just apply to student debt. Remember, when it comes to all debt, the longer you take to repay it, the more you will pay in interest charges…which means less money for you!

Remember, your relationship with money will be really important. Learning to put your money to work for you instead of the other way around is a proven method of how successful people have built some wealth. Make your money work for you!

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