// Graduate Tips to Manage your Money
by Linjie, 5th August 2016
Congratulations, you have landed your dream graduate job in London. Against all the odds, you were able to secure a full-time role in one of the world's most competitive job markets. Now comes the hard part, how do you manage your new salary? We understand that this task may seem daunting and you might not even know where to start. Well, you have come to the right place, here are some tips on how to take control of your finances from day one.
Where are you going to live?
Make sure you are realistic about where you are living compared to your salary. While you may want to rent in a lovely part of central London, your salary may not allow you to do so while maintaining a reasonable social life. The last thing you want is to have to sit in your flat all day because you can't afford to do anything.
Do you know how much everything should be? If an unscrupulous person is trying to sell you a sandwich for £10 and you don’t know whether to buy the Expatisan is super helpful if you want to work out average prices.
Money In, Money Out?
Next, organisation is key. Make a list of all of the things that you own and owe. This can include savings before starting work, any money you owe to your parents or university. Next, calculate of all of your monthly living expenses which in London most often includes; rent, utilities, council tax, travel card, and food. Now subtract your monthly salary from these required expenses, you should allocate the remaining amount to entertainment and savings. The most important thing is to ensure that you have funds in your savings account at all times in case an emergency situation arises that requires funds immediately. Additionally, create a plan for affordable monthly payments for any debts that you owe.
Don’t know how to Budget? Check out this great online tool here and you can have your finances sorted in 5 minutes.
When I’m Grey and Old
Your next step should be to set up a pension. This may seem unnecessary at your age, but it is never too early to start. Even if you only contribute a few your earnings, in many cases your company will match it. As it can be confusing to get your head around, you should discuss all of the options you have in terms of pension schemes and company shares with your employer.
Want to figure out how much you would need at that grand old age and what you need to save every month? Check out this handy calculator.
Remember, staying organised and managing an ongoing plan is the best way to ensure success and reduce stress. Good luck with your first job and enjoy your time in London!