7 answers
Todd
Student
Vacaville
1
Question
Asked
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What is the best way to financially beneit myself?
what could be the best way to make sure I am financially prepared for when I graduate and start working and I complete my training for my trade so I could work well too.
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7 answers
James Constantine Frangos
Consultant Dietitian & Software Developer since 1972 => Nutrition Education => Health & Longevity => Self-Actualization.
6182
Answers
Gold Coast, Queensland, Australia
Updated
James Constantine’s Answer
Hello Todd!
Understanding Financial Preparedness for Graduates
Preparing financially for life after graduation and entering the workforce is crucial for long-term success. Here’s a comprehensive guide to ensure you are financially ready when you complete your training and start your career.
1. Create a Budget
The first step in financial preparedness is creating a budget. A budget helps you understand your income and expenses, allowing you to manage your money effectively.
Track Your Income: Start by estimating your future income based on potential job offers in your trade.
List Your Expenses: Include fixed expenses (like rent, utilities, and insurance) and variable expenses (like groceries, entertainment, and transportation).
Adjust as Necessary: Ensure that your total expenses do not exceed your income. If they do, identify areas where you can cut back.
2. Build an Emergency Fund
An emergency fund is essential for financial security. It acts as a safety net in case of unexpected expenses or loss of income.
Aim for 3-6 Months of Expenses: Ideally, save enough to cover three to six months’ worth of living expenses.
Start Small: If saving this amount seems daunting, start with a smaller goal (e.g., $500 or $1,000) and gradually increase it.
3. Understand Student Loans and Debt Management
If you have student loans or other debts, it’s vital to understand them fully.
Know Your Loan Terms: Familiarize yourself with interest rates, repayment terms, and any grace periods.
Create a Repayment Plan: Consider how much you can afford to pay each month once you graduate. Look into options like income-driven repayment plans if applicable.
4. Invest in Retirement Early
Even though retirement may seem far off, starting early can significantly impact your financial future due to compound interest.
Employer-Sponsored Plans: If your employer offers a retirement plan (like a 401(k)), take advantage of it—especially if they match contributions.
Individual Retirement Accounts (IRAs): Consider opening an IRA to further enhance your retirement savings.
5. Gain Financial Literacy
Educating yourself about personal finance will empower you to make informed decisions.
Read Books and Articles: Explore resources on budgeting, investing, and debt management.
Take Courses: Many community colleges offer courses on personal finance that can provide valuable insights.
6. Network Professionally
Building a professional network can lead to job opportunities that may offer better salaries or benefits.
Attend Industry Events: Participate in workshops or seminars related to your trade.
Utilize Social Media Platforms: Use LinkedIn to connect with professionals in your field who can provide guidance or job leads.
7. Explore Additional Income Streams
Consider ways to supplement your income while completing training or after graduation:
Part-Time Work or Internships: Look for part-time jobs related to your field that can provide experience while earning money.
Freelancing or Gig Work: Depending on your skills, freelancing could be an option for additional income during school or after graduation.
8. Set Financial Goals
Establish short-term and long-term financial goals that align with your career aspirations:
Short-Term Goals: These might include saving for specific items like tools needed for work or paying off credit card debt.
Long-Term Goals: Consider goals such as buying a home or saving for children’s education down the line.
9. Review Regularly
Your financial situation will change over time; therefore, regularly reviewing and adjusting your budget and goals is essential:
Monthly Check-ins: Set aside time each month to review spending habits and adjust budgets as necessary.
Annual Reviews: At least once a year, assess progress towards long-term goals and make adjustments based on changes in income or lifestyle.
By following these steps diligently, you’ll be well-prepared financially when you graduate from school and enter the workforce in your chosen trade.
Top 3 Authoritative Sources Used:
U.S. Department of Education
Provides comprehensive information on student loans and financial aid options available for students.
National Endowment for Financial Education (NEFE)
Offers educational resources aimed at improving financial literacy among individuals preparing for their careers.
Investopedia
A trusted source for investment education that covers topics such as budgeting strategies, retirement planning, and personal finance management techniques.
God Bless You!
JC.
Understanding Financial Preparedness for Graduates
Preparing financially for life after graduation and entering the workforce is crucial for long-term success. Here’s a comprehensive guide to ensure you are financially ready when you complete your training and start your career.
1. Create a Budget
The first step in financial preparedness is creating a budget. A budget helps you understand your income and expenses, allowing you to manage your money effectively.
Track Your Income: Start by estimating your future income based on potential job offers in your trade.
List Your Expenses: Include fixed expenses (like rent, utilities, and insurance) and variable expenses (like groceries, entertainment, and transportation).
Adjust as Necessary: Ensure that your total expenses do not exceed your income. If they do, identify areas where you can cut back.
2. Build an Emergency Fund
An emergency fund is essential for financial security. It acts as a safety net in case of unexpected expenses or loss of income.
Aim for 3-6 Months of Expenses: Ideally, save enough to cover three to six months’ worth of living expenses.
Start Small: If saving this amount seems daunting, start with a smaller goal (e.g., $500 or $1,000) and gradually increase it.
3. Understand Student Loans and Debt Management
If you have student loans or other debts, it’s vital to understand them fully.
Know Your Loan Terms: Familiarize yourself with interest rates, repayment terms, and any grace periods.
Create a Repayment Plan: Consider how much you can afford to pay each month once you graduate. Look into options like income-driven repayment plans if applicable.
4. Invest in Retirement Early
Even though retirement may seem far off, starting early can significantly impact your financial future due to compound interest.
Employer-Sponsored Plans: If your employer offers a retirement plan (like a 401(k)), take advantage of it—especially if they match contributions.
Individual Retirement Accounts (IRAs): Consider opening an IRA to further enhance your retirement savings.
5. Gain Financial Literacy
Educating yourself about personal finance will empower you to make informed decisions.
Read Books and Articles: Explore resources on budgeting, investing, and debt management.
Take Courses: Many community colleges offer courses on personal finance that can provide valuable insights.
6. Network Professionally
Building a professional network can lead to job opportunities that may offer better salaries or benefits.
Attend Industry Events: Participate in workshops or seminars related to your trade.
Utilize Social Media Platforms: Use LinkedIn to connect with professionals in your field who can provide guidance or job leads.
7. Explore Additional Income Streams
Consider ways to supplement your income while completing training or after graduation:
Part-Time Work or Internships: Look for part-time jobs related to your field that can provide experience while earning money.
Freelancing or Gig Work: Depending on your skills, freelancing could be an option for additional income during school or after graduation.
8. Set Financial Goals
Establish short-term and long-term financial goals that align with your career aspirations:
Short-Term Goals: These might include saving for specific items like tools needed for work or paying off credit card debt.
Long-Term Goals: Consider goals such as buying a home or saving for children’s education down the line.
9. Review Regularly
Your financial situation will change over time; therefore, regularly reviewing and adjusting your budget and goals is essential:
Monthly Check-ins: Set aside time each month to review spending habits and adjust budgets as necessary.
Annual Reviews: At least once a year, assess progress towards long-term goals and make adjustments based on changes in income or lifestyle.
By following these steps diligently, you’ll be well-prepared financially when you graduate from school and enter the workforce in your chosen trade.
Top 3 Authoritative Sources Used:
U.S. Department of Education
Provides comprehensive information on student loans and financial aid options available for students.
National Endowment for Financial Education (NEFE)
Offers educational resources aimed at improving financial literacy among individuals preparing for their careers.
Investopedia
A trusted source for investment education that covers topics such as budgeting strategies, retirement planning, and personal finance management techniques.
God Bless You!
JC.
Zach Henkin
Auditing
4
Answers
Hartford, Connecticut
Updated
Zach’s Answer
One of the best things you can do is prepare for emergency expenses. Budget so you have an extra couple thousand for emergencies and if you make it through the year without spending that money then you should invest that into a Roth IRA or another investment vehicle rather than spending it. Think of money as a tool to build wealth not as a commodity that is exchanged for goods and services and you will be better off than most.
Tammy Laframboise
Present pension and financial planning information to members of a pension
43
Answers
Toronto, Ontario, Canada
Updated
Tammy’s Answer
Hi Todd,
In addition to all the great advice given so far, I would like to add a "big picture" suggestion. That is to start the process by goal planning for your life.
Identify all the things that you want out of life - retire comfortably, travel widely, own a home, have a family. Maybe you would like to learn how to fly a plane someday. This goal planning exercise is for the things closer to where you are at now as well, for example, you have already identified that you plan to graduate and you plan to have a trade. You might also want to buy a car now or move to your own apartment. Spend some time really thinking about what you want out of life. Speak to friends, colleagues, relatives, mentors and ask them about their dreams and life experiences.
Next write it down. All your dreams and wants. These are your life goals. Put in as much detail as you can. For example, I want a red sportscar with a great music system. This is important because, if your parents gift you the 10 year old family vehicle, you would technically have achieved the "I want a car" goal but it would not really be what you want.
Now sort your dreams and wants along the time lines of Long Term ( in 10 years or more), Medium Term (in 5 years) and Short Term ( in 1 or 2 years).
Goal planning for your life is a good exercise to get into throughout your lifetime and can start as early as you want. My son first did this exercise when he was 12 years old and he continues to do it now that he is 31. It has enabled him to travel for 5 months, to pursue his skateboarding hobby and to get a job that really suits his personality and lifestyle. Over time your dreams and goals will change so making it an annual exercise allows for flexibility and keeps the goals relevant. I once had a client whose dream it was to travel widely but once he met his now wife that dream disappeared and his is a happily married family man with a lovely home and a job he enjoys. He doesn't regret his change of goals. And the good news is that the money he saved for travel was easily diverted to his new goals.
At this point you can then get into the nitty gritty of making a budget. Start with your goals and identify how much each of those is costing or would cost to achieve, Look at the timeline and then do the math of determining how much you need to save between now and the future date that you hope to achieve them. For example if you want a car costing $25,000 to purchase in 5 years time you would have to save $5,000 per year or $417 per month. By adding these specific saving goals to your budget you can get started on reaching the goal. It can be overwhelming when the cost of your goal is big but by breaking it down you are making progress and you can proactively decide how you are spending your money to speed up or slow down the process of reaching the goal.
I think that goal planning for life is the first and most essential component to achieve a life that is happy, healthy, fun and uniquely suited to you. Of course, you would then need to develop the financial goals component, which is guided by the life goal planning that you have first and continually engage in.
Best of luck,
Tammy
In addition to all the great advice given so far, I would like to add a "big picture" suggestion. That is to start the process by goal planning for your life.
Identify all the things that you want out of life - retire comfortably, travel widely, own a home, have a family. Maybe you would like to learn how to fly a plane someday. This goal planning exercise is for the things closer to where you are at now as well, for example, you have already identified that you plan to graduate and you plan to have a trade. You might also want to buy a car now or move to your own apartment. Spend some time really thinking about what you want out of life. Speak to friends, colleagues, relatives, mentors and ask them about their dreams and life experiences.
Next write it down. All your dreams and wants. These are your life goals. Put in as much detail as you can. For example, I want a red sportscar with a great music system. This is important because, if your parents gift you the 10 year old family vehicle, you would technically have achieved the "I want a car" goal but it would not really be what you want.
Now sort your dreams and wants along the time lines of Long Term ( in 10 years or more), Medium Term (in 5 years) and Short Term ( in 1 or 2 years).
Goal planning for your life is a good exercise to get into throughout your lifetime and can start as early as you want. My son first did this exercise when he was 12 years old and he continues to do it now that he is 31. It has enabled him to travel for 5 months, to pursue his skateboarding hobby and to get a job that really suits his personality and lifestyle. Over time your dreams and goals will change so making it an annual exercise allows for flexibility and keeps the goals relevant. I once had a client whose dream it was to travel widely but once he met his now wife that dream disappeared and his is a happily married family man with a lovely home and a job he enjoys. He doesn't regret his change of goals. And the good news is that the money he saved for travel was easily diverted to his new goals.
At this point you can then get into the nitty gritty of making a budget. Start with your goals and identify how much each of those is costing or would cost to achieve, Look at the timeline and then do the math of determining how much you need to save between now and the future date that you hope to achieve them. For example if you want a car costing $25,000 to purchase in 5 years time you would have to save $5,000 per year or $417 per month. By adding these specific saving goals to your budget you can get started on reaching the goal. It can be overwhelming when the cost of your goal is big but by breaking it down you are making progress and you can proactively decide how you are spending your money to speed up or slow down the process of reaching the goal.
I think that goal planning for life is the first and most essential component to achieve a life that is happy, healthy, fun and uniquely suited to you. Of course, you would then need to develop the financial goals component, which is guided by the life goal planning that you have first and continually engage in.
Best of luck,
Tammy
Matthew Gillespie
Data Analyst
4
Answers
Chapel Hill, North Carolina
Updated
Matthew’s Answer
There are great answers to this question regarding saving, budgeting, burn vs spend, etc. I want to give a few more specific strategies that might be helpful:
Treat your credit card like a debit card, and NEVER let it charge you interest. This will improve your credit score, earn rewards points/cashback, and provide an extra layer of security from hackers.
Learn to cook. Eating out is expensive (and often much less healthy), so save it for when you are with friends. Look for simple recipes and marinades, and invest in a decent spice portfolio and an air fryer. It won't take long before you like your own cooking better than the restaurant food anyway!
A college degree provides valuable income opportunities... sometimes. There are degrees with much lower returns on investment... if you've always dreamed of studying sociology or political science, be sure to pair that with a second major with higher earning potential. Starting in Community College and transferring to a 4-year public university dramatically reduces the cost of college as well. Where you go and what you study will have a huge impact on the financial value of college. And don't discount the value of trade schools!
Stay safe and healthy! Medical debt is crushing our population, driven by poor diets and sedentary lifestyles. You won't easily see the savings benefits of eating healthy and staying active but believe me, they are massive assets to your finances. Take care of yourself :)
Matthew recommends the following next steps:
George Katsinis Jr. - AFC®
Personal Financial Counselor
45
Answers
Salem, Oregon
Updated
George’s Answer
Spend less than you make! Then..
1. Save some
2. Invest some
3. Give some
1. Save some
2. Invest some
3. Give some
Great advice George! Can you give more detail about how much is ideal to save, invest, and give?
Sharyn Grose, Admin
Anthony Calhoun
Automotive Technician
10
Answers
Cincinnati, Ohio
Updated
Anthony’s Answer
To keep it short and simple try and invest 20-30% of your income. Stay out of debt if you are in it pay it off. Read books like The Richest Man of Babylon, The Intelligent Investor and others. You will either earn compound interest or pay it.
William Nwaogu
Construction, CAD and BIM
265
Answers
Lagos, Nigeria
Updated
William’s Answer
Financials management is the secret to financial success.
Measure your decisions, choices and options with financial weighing balance.
Always do your cost planning by means of budget. Make provision for contingencies to tackle unforseen expenses. Avoid deficit budgets as they lead to debts, avoid surplus budgets as they lead to waste, and maintenance relatively balanced budget margin of plus or minus 10%.
Prepare your balance sheet. See the picture off your assets and liabilities to ensure that you live below your means.
Be self discipline by been prudent in your personal finance. Ensure you prioritize your needs above your wants in order of importance. Remember that wants and needs are inexhaustible.
Avoid bad credit score so that you do not spend all your earnings in debt servicing instead of solving your needs.
Work hard and price your jobs or work well to prevent working the size of whale and earning the size of a mosquito. Cash flow problems may surface with more resources committed to work, but little outcome for your satisfaction.
Work smart, but do not cheat. Save energy as it is money, avoid waste in general and apply ergonomics.
Work more with adequate rest. Remember that health is wealth.
Be rich, and not just wealthy. Many wealthy are slaves to materialism, which the rich enjoy financial freedom.
Measure your decisions, choices and options with financial weighing balance.
Always do your cost planning by means of budget. Make provision for contingencies to tackle unforseen expenses. Avoid deficit budgets as they lead to debts, avoid surplus budgets as they lead to waste, and maintenance relatively balanced budget margin of plus or minus 10%.
Prepare your balance sheet. See the picture off your assets and liabilities to ensure that you live below your means.
Be self discipline by been prudent in your personal finance. Ensure you prioritize your needs above your wants in order of importance. Remember that wants and needs are inexhaustible.
Avoid bad credit score so that you do not spend all your earnings in debt servicing instead of solving your needs.
Work hard and price your jobs or work well to prevent working the size of whale and earning the size of a mosquito. Cash flow problems may surface with more resources committed to work, but little outcome for your satisfaction.
Work smart, but do not cheat. Save energy as it is money, avoid waste in general and apply ergonomics.
Work more with adequate rest. Remember that health is wealth.
Be rich, and not just wealthy. Many wealthy are slaves to materialism, which the rich enjoy financial freedom.