What Graduates Ought to Know Regarding Personal Finance

Looking back at our college years, especially the period when we graduated from university and set out on our journey we would have loved to have had somebody guiding us in making our personal finance choices. Well, it’s never too late and much wiser as you have become financially, you can pass on these expert tips to the new generation of graduates.

You can’t improve your financial health without formulating a budget

Most if not all things in life at some stage or the other bring you in close contact with loans. And loans can’t be avoided altogether. Probably you first contact with loans is through a credit card and instead of maxing out the card and repaying the balance painfully and slowly, try formulating a clear cut budget that lists all your income sources and the expenses and apportions the limited income in such a manner that your loans get paid and you meet every other expense too.

Prevent wasteful expenditure

If you dispassionately review all that you spent when you had fewer responsibilities but a better income, you would be aghast that you wasted huge money on frivolous pursuits that (if saved) could have financed childcare and many other daily essentials later on. The whole purpose of saving in early years is to improve the quality of life in later years when the pressure on your resources mounts.

Don’t postpone retirement funding to later years when multiple expenses will reduce your saving power

The wonders of interest compounding will ensure that even small amounts diligently saved early on in life will spare you from having to dole out much larger amounts thereby increasing the pressure on your household budget when many other family maintenance expenses will be competing for your limited income. The traditional IRA running simultaneously with a Roth IRA will give you the right quantum of tax benefits and investment choices that will see your money appreciating in the best possible manner.

Leverage your youthfulness and energy to make the maximum money

When you are young and dynamic a fifteen hour working schedule can be adopted without a twitch of discomfort. This is the moment to run a great career simultaneously with part time jobs and freelance contract works to create maximum income streams, not so that you can spend comfortably, but to save intelligently for future needs.

Learn the basics about investments and their power to multiply your wealth

Your time and money is precious and they cannot be wasted in fruitless investments that may guarantee safety and security but promise very low returns. To succeed in investments you have to make your money grow. Learn as much as you can about stock index funds, commodities trading, growth stocks and target date funds that will ensure that your money attracts the highest returns.

Keep credit cards off limits

There is wisdom in restricting yourself to secured debit cards. Credit cards only make you spend more than your income thereby dragging you deeper into debt. At least ensure you build up a great credit score showing that you can handle loans well before opting for credit cards.

If you can do without something don’t rush in to buy it

If you feel that you don’t really need a car in your situation go without it, and the same goes for all of life’s other great temptations. There is virtue in frugality.

Know the advantages that vehicle title loans bestow

The cash loan for title aims to solve financial hassles in the shortest possible time frame and it does this by successfully limiting the formalities and its eligibility criteria. The auto collateral loan raises an amount approximating 60% to 70% of the car’s resale value. The car equity loan money can be utilized in any manner and for any purpose from clearing loans to boosting investments to solving urgent cash demands. The cash loan for title has an interest rate that does not exceed 25% APR which is a great improvement on usurious loans like payday and personal loans. The pawn car title loan offers a variety of repayments program to suit every budget.

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