Now that you have completed a program in the field of your choosing (whether it be trade school, University, or College) it is time to make tons of money and live life up.
Many people will read that statement and agreed whole heartedly with it. I am not saying that you should not celebrate your accomplishments up to date, but you should do so with the understanding that the real journey is yet to begin. Completing your studies, as difficult as it may have been is nowhere close to the real world. The daunting task of finding your first job is the first major challenge on the road to success in the real world. Once you have found your first real job in your field of study, this how to guide will show you how to survive your first year in the workforce whiles focusing on career planning:
Before you begin career planning decide to stay at home
No matter how uncool it is to be a career person living at home, it is essential to easing your transition into the real world. The career planning processing and working on career development is a very challenging aspect of life. Living at home will take some stress off your shoulders. Also living at home will save a lot of money so when you are prepared to move out (own or rent) you will have enough money set aside to be comfortable. Some people will argue that their parents will charge them rent, but let’s be honest your parents rent is cheaper than that of most 1 bed room pads in a city.
Start paying off your student loan immediately
Many young people will be fortunate enough to not have any debt once they graduate, unfortunately on the flip side many students will finish their studies with over $20,000 of debt. The student loan most likely was interest free during the time of your studies, but now that you have completed your studies the interest will start accruing. There’s no doubt in denying the importance of career planning but it is essential to start paying off your student debt immediately. If you don’t take the proper initiative to start paying off student loads as soon as possible then you will be in your 30s worrying about a loan that should have been paid off many years ago.
Invest in yourself by focusing on career development
You have already learned a great wealth of information, but to let you in on a little secret, the learning process never ends in life. Check to see if the company you are working for offers courses that will advance your knowledge and allow you to move on up. Investing in yourself also refers to any costs that you may incur while trying to improve yourself and your career.
Start a savings account
As simple as it sounds you must immediately open up a savings account and begin making payments (automatic withdrawals from your pay check works best).If you have no student debt and choose to live at home then all the power to you, as you are in an enviable position because you can save a large chunk of your income. Even if you are in the worst possible scenario of living on your own and paying back a student loan you should still open a savings account. Even if you save $50 a week it still adds up and gets you into the habit of savings.
Don’t hesitate to enjoy yourself
I am not contradicting myself, I am simply stating that if you have your savings on track and have followed the four previous steps then once in a while you deserve a break (vacation or time off at home). A couple of days off will do you good, just make sure you do not take an extended vacation for no reason. Career development planning is important but your body needs its rest and your young soul needs some relaxation.
photo: thecareersgroup
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I like the idea of setting a “fun budget” so you don’t feel guilty for not saving every cent, but there are still limits there to keep you from going overboard.
I am a firm believe of taking a vacation at least once a year where I recharge my batteries. I usually travel to an all inclusive resort down south (Mexico, Dominican, etc.). I am able to do this because I set aside a specified amount of money every paycheck so that I have enough money in my vacation account to travel at least once a year.
I do exactly the same. I cut out silly coffees and lunches out so that I have enough for a wonderful experience abroad. Okay so this isn’t what everyone’s passion may be but I think a lot of students fall into the trap of drinking and partying to excess because university is labelled in this way.
I think people who struggle financially in their first year should take a step back and really assess what they really want. Is clubbing five nights a week really making me happy? Do I even have time to club five nights a week? If your passion truly is clubbing then fair enough but there must be other parts in your life where you spend money that doesn’t bring much in the way of satisfaction. If you cut back in that area then you will can put the savings towards your clubbing budget. In life you can’t win financially in every way without some sort of effort or sacrifice at the beginning. Much like life your student years will show you that sacrifices need to be made to prevent a complete, financial meltdown.
It is funny when you think about it, saving money tips sound foolish until you actually try them out. I always thought drinking coffee and eating at work was just a minor expense. When you actually cut both out you realize how much money you are able to save. Then you think about it and you realize how much extra money you have in your bank account to spend on items that truly make you happy (traveling in my case).
As for the clubbing aspect, I love to go out once in a while with my friends and have a good time. Then on the other hand I have buddies who go out 3 times a week and then they complain to me, “how come you have so much fun when you are out.” The answer is that by waiting to go out (hint: delayed gratification) I enjoy it more.
It’s totally cool to stay at home after College while we set ourselves up for success. It’s amazing how much money can be saved. $500-800 a month for rent is a lot of money to save that could be put toward something other than an apartment complex’s maintenance fund.
I’m actually 3 years out of College and just moved back home because I’m getting married soon. Actually, my fiancee is doing the same. Together, we’re saving over $10,000 which we’ll put toward a home.
Many people are in a situation where they are not able to live at home, however, if your parents allow you to stay with them then why not? If you live in a big city like me (Toronto) you will not find a bachelor apartment for less than $500 a month. Imagine saving at least $6000 yearly on rent, you could so much with that amount of money. Granted, most young guys will have the excuse of wanting to live on their own to bring back girls. Let’s be honest, chances are you do not score every night. You are better off just renting a hotel/motel room a few times a month when do you want to spend an evening with a female friend.