Your Guide to Managing Funds After College

What could be more exciting for someone in his/her early 20s than going up the stage and claiming that hard-earned diploma? Finally, after years of insufficient sleep and piles of work that seemed endless, you are outside the four walls of a classroom and will be venturing into the real world. You begin imagining your first job, how much your income will be, and of course: what you can buy with it.

But wait. Before daydreaming of all the luxuries you would like to have, be mindful of your pockets will survive now that you're officially independent from your folks. So before wipe out the all the nearby malls town as soon as you get your hands on that precious paycheck, here's a few things to keep in mind.

First on the list, pay off your student debts! Venturing out of the school does not necessarily equate to freedom from your loans. Avoid further headaches and allot a portion of your wages each month to gradually pay your deficits. Establish a payment plan and contact your loan provider because interest rates may surprise you if you neglect it. If you have several loans, begin with the high rates first. Consider raising funds allocated for this too. Even the smallest addition to your payments can go a long way, you’ll see.

Next up, prevent getting carried away by the fantasy of spoiling yourself now and saving up later in life. Open a savings account as soon as you’re out of school and religiously fill it from time to time. Make a list of your daily expenses and ways to cut them down. This will be helpful in emergency cases, be it a new car engine or sudden loss of a job.

Lastly, fulfill your idea of an expensive lifestyle once you are financially stable and have sufficient savings. Do not be swayed by the concept of having a carefree and buy-all-you-want practice that you might normally see on television. Instead of buying that overpriced coffee everyday, opt for more affordable choices--something that can save you heaps of greens you can use for other much needed buys.

In addition, since the youth nowadays are highly reliant on technology, there are personal finance applications that will help you manage your funds. It indicates how much cash is still safe for you to spend, and even provide assistance by helping you set aside cash automatically.