The summer is well on its way, and many college students have come or are about to graduate. An exciting job and financial stability in the freshman’s dream after many years of stuffing with pasta and tuna.
To ensure a smooth transition from student life to working adult life, we have compiled a list of personal finance issues that should be addressed when it’s time to press the school’s back door for the last time.
Student loan credits?
Find out if you can qualify for a student loan reduction or student loan credit. A student loan reduction means the ability to pay less tax on a student loan repayment.
The student loan means that Kela pays part of the student loan. However, in order to be eligible for benefits, studies must be completed within the deadline. Both benefits are really worth the money, so you should take advantage of them if you are entitled to them.
Saving in a buffer fund
As pessimistic as it sounds, you should start saving for a bad day in a so-called buffer fund. Anything can happen in life, and no one has reportedly yet regretted saving. Saving an emergency fund can motivate themselves, for example by setting small intermediate goals: If your goal is to save even a few hundred euros at a time, do not seem as impossible as if the goal would be to save an amount equal to half of the expenditure. The saying “penny is the beginning of a million” applies here too.
It is sometimes said that regardless of income, expenditure is always 110% of income. Although the expression is a bit exaggerated, it is not quite caught in the wind. Turning a student’s income into a full-time employee’s income easily makes money feel like junk, and vanity easily wastes more than it makes sense.
Of course, income increases, the standard of living wants to be improved, and that is quite permissible, but here too, there is merit. If you didn’t start tracking your own income and expenses during your studies, for example using an Excel budget or a mobile app, now is the time to start. Tracking your budget helps you figure out where the money is really going, reduce wasted time and make it easier to control your spending.
Remember to bid
Whether it’s an electricity contract, an internet connection, or insurance, you always have to bid for it. Banking services should also be competitive at this point in their lives. A bank account as a child may no longer be the most suitable or financially viable option.
In monetary matters, comparing credit cards is also worthwhile. A student credit card acquired during your studies is usually a basic credit card without any additional benefits. However, when you are working, you may be able to get a credit card with many useful features. The most common extra benefits included credit cards include travel insurance, flight points, and purchasing and product safety.
Also, borrowing usually comes to some point after your studies, usually in the form of a car or home loan, for example. Unlike student loans, there are huge differences in the cost of other loans, which is why you should always compare and compete before making a loan decision.
Learn to invest
Sometimes grandparents’ youth may have been a good idea to lay down bank savings and expect them to start increasing interest rates, but today, unfortunately, this strategy is not the most viable option.
Investing may sound daunting and overwhelming at first, but for the sake of your own future, everyone should look into the fundamentals of investing. Getting started with investing learning can be accomplished, for example, by reading beginner investment guides. Once you have started investing, mobile apps can also help with investment management.