We always seek money and life lessons from the elders, because they have experienced everything that you are about to encounter in life and especially to personal finance. You might think that every opinion of the elders is just the same but no, every person may have dealt with same situations but managed to find solutions in different approaches.

Before you splash out on luxurious lifestyle and fancy things, here are the pieces of advice you need to incorporate as soon as you bid goodbye to your alma mater.

1. Set boundaries

As a first time employee, you may receive tons of hang out invites with new colleagues or weekend bonding with old friends. As a recent graduate, you must learn how to live within your means to avoid bankruptcy.

To attain financial literacy and freedom, it’s not only about declining several party invites from friends and colleagues, but also check your spending habits. For instance, your current salary is $500 a month, let’s divide the amount to 26 days to identify how much you earn on a daily basis:

$500 x 26 days= $19.23 this is the total money you earn every day you go to work. Then, divide the $19.23 to the number of working hours you are obliged to comply and you will get your hourly rate: $19.23/8 working hours, you have $2 per hour.

Buying a branded blouse worth $25 per item is beyond your daily rate, might as well save up for the coming days and go back to the retail store when you’re savings are ready.

2. Never Neglect Your Financial Obligations

As soon as you have landed a job, it would be easy on your part to request for a personal loan from a private licensed moneylender to make ends meet as a starter. Since you have proof of billing and income, valid IDs and active bank accounts, the licensed moneylender will deposit your loan directly to your bank.

However, neglecting your financial obligations also hurts your personal finance. For example, after ten years you’d like to buy your very first property through housing loan, licensed moneylenders will conduct a background check before they approve your loan request. You might have some troubles, if these moneylenders have proven that you have a bad credit score.

To avoid a bad credit score, here are the best ways to handle your personal finances and obligations:

  • No matter what happens, always pay on time to avoid late payment fees.
  • Don’t let any of your friends or relatives use your credentials when borrowing. There are instances that no matter how close you are with friends, if they suddenly turn their backs on you because they don’t have suffice money to pay the loan, you will still need to pay the licensed moneylender.
  • Borrow only the amount you can repay. It’s not advisable to request a bigger loan from any licensed Singapore moneylender for attending parties, buying expensive things and get a smartphone which is totally unnecessary for the moment.

3. Prioritize and incorporate your goals

Prioritizing your life goals will really depend on your personality, but the top priorities that everyone would definitely try their best are as follows:

  • Establish emergency funds
  • Repay debts
  • Purchase a property
  • Give back to parents
  • Save for the retirement years

Having these goals can motivate you to work and save more for the future, even if sometimes you feel low every time you realize your batch mates are getting ahead of you either in career aspect, love life and personal life.

4. Find fun in simple things

Everybody knows how much you love to have your own space, privacy and no rules to follow. But not everything may go as you planned, sometimes you have to wait for the right moment, handle your personal finance well before you achieve anything you want in life.

For now, you must find fun in simple things such as the following:

  • Learn how to cook, don’t you know that the best way to win a man’s heart is through his stomach? Aside from making your ideal man fall in love with you, cooking is an essential skill for both men and women. Home cooked meals are way better than ordered food from fast-food restaurants or even at the fine dining with preservatives. You can save more money if you can cook at home.
  • Hangout with friends during happy hour is more like hitting two birds with one stone. You get to have fun with friends and loosen up from hectic schedule at work while taking advantage of discounted beer bottles and affordable appetizers.
  • Feeling bored at home is sometimes inevitable during weekends, find free stuff near your area. There are mobile applications that can point you to free sightseeing spots in the area like local museums, recreational activities, free admission to the parks. You don’t need to shell out huge amount of money.

There are setbacks and unexpected expenses you may encounter, but staying responsible to your financial obligations can help you reach your goals and keep you closer towards success.

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