As soon as you complete your schooling, a lot is awaiting you in terms of monetary aspects. Here are some tips on making wise financial decisions today that will pay off in the future. But loans, budgeting, saving – it’s a lot for a new graduate to handle! There are always bright ideas and creative financial solutions for young people like you, who are fresh graduates.
Invest in Skill Development
Building new job skills can lead to better pay and more opportunities. Look for online courses that are teaching abilities employers want right now.
Many courses teach skills that can help you earn more money. Things like coding, data analysis, project management and more are very valuable.
Getting an official certification after a course proves your new knowledge. This helps you qualify for higher-paying roles. If you need a small cash loan with quick approval to pay course fees, it could be worthwhile. Just have a plan to repay loans once you land a better job.
- Libraries offer free online training resources
- College courses are sometimes available for free online
- Low-cost certification programs at community colleges
Some great training is absolutely free or very cheap. Libraries, colleges and online all offer ways to build career skills at little or no cost. The key is picking skills that will increase your income potential.
Use Income-Driven Repayment Plans
Money troubles after college can feel scary. But did you know there are special payment plans that make big student loans easier to pay back? These plans look at how much money you make each year. Then, they set your payment to an amount you can afford. Neat, right?
Federal Loan Benefits
If your loans come from the government, you get awesome benefits. You might pay less interest over time. And if you still have debt after many years of payments, some of that debt could get forgiven! Isn’t that great?
Payments Based on Income
With these special plans, your payment goes up or down based on your income that year. Make more money in one year? Pay a bit more that year. Earn less? Pay less that month. The payment fits what you can afford.
Potential for Loan Forgiveness
The coolest part is if you still have loans left after 20-25 years of payments, the remaining balance could get erased! Any leftover debt may get forgiven by the government. Paying loans for that long stinks, but forgiveness could save you thousands!
Monetize Your Hobbies
Are you good at photography? Enjoy making crafty things? Why not turn your fun hobbies into a side job that makes extra money? Lots of people buy handmade goods or services from folks just like you. Sell things you make or offer services you’re skilled at.
Turn Passions Into Side Income
- Sell paintings, jewellery or other artwork
- Make printables, graphics, or online courses
- Do freelance writing, web design or coding gigs
- Offer tutoring, music lessons or pet-sitting
It feels so good to get paid for doing things you genuinely love. And that extra income can go straight into your savings or debt payments! Any hobby or skill could potentially earn you cash on the side.
Use Micro-Investing Apps
Investing always seemed like one of those things that required a ton of money upfront. But then discovered micro-investing apps that let you get started with just your spare change! It’s such a brilliant concept.
The app will round up every purchase you make to the nearest dollar and automatically invest that “digital spare change” for you. You can also set up small recurring transfers as low as £5 per week to keep adding to your investments.
Start Investing With Spare Change
- Rounds up each purchase to the next dollar
- Invests that spare change for you
- Set up recurring £5, £10, etc. weekly transfers
- Slowly build investments with money you literally won’t even miss
It makes investing so accessible and passive. Before you know it, those little amounts start adding up into a nice growing portfolio without you having to shell out big lump sums.
The best part is you can open an investment account on most of these apps with as little as £5 to start. Just keep letting it pull those small dollar amounts from your spare change or recurring transfers, and your portfolio balance steadily grows over time. Consistent small investments made easy.
Leverage Credit Card Rewards Wisely
Look for cards that give you points or cash back when you use them. Some give flat rates back on every purchase. Others give bonus rewards for spending in certain groups like gas or groceries.
Pay Off Balances Monthly To Avoid Interest
- Always pay the full statement balance by the due date
- Paying interest fees wipes out the value of rewards
- Treat credit cards like debit to avoid costly debt
The key is only use rewards cards for normal living costs you’d pay for anyway – like gas, groceries, bills and so on. Do not spend extra just to earn rewards! Redeem reward points or cashback to cover those same necessary expenses.
For example, if you spend £500 per month on groceries using a 3% cashback card, you’d earn £15 back that month. Apply for that £15 credit right towards next month’s grocery spending. It’s free money back in your pocket!
Credit card rewards are bonus dollars when used properly. But carrying balances and paying interest quickly cancels out any reward value. Pay balances in full, stick to normal budgeted purchases, and those rewards are pure savings!
Participate in the Sharing Economy
You share your belongings and get paid for letting others use them temporarily.
Rent Out Spare Rooms Or Storage Space
If you have an extra room or storage area, you can rent it out when not in use. This brings in cash! You might need some startup funds to get the space rental-ready though. A cash loan with quick approval could help cover any updates or supplies needed to prepare the space for renters. Just be sure to budget loan repayments that are affordable for you.
Share Tools, Equipment Or Skills
- Rent power tools, camping gear, photography equipment
- Do handy work like yard care, plumbing, painting
- Provide services like dog walking, tutoring, music lessons
Platforms Like Airbnb Or Turo
Websites like Airbnb let you rent out spare rooms or your whole home when vacant. Turo lets you put your car up for rent. There are apps to rent out tools, outdoor equipment and more. Others help you advertise services like handyman skills or pet sitting.
Conclusion
As a new graduate, you stand at the starting line of your financial journey. There are easy, creative ways to get ahead financially right from the get-go.
Putting into action just a few of these game-changing money moves can steer you towards that ultimate destination: true financial freedom and independence for life. Your brightest money days lie ahead!
