Adulting advice for new graduates
Got your first job post uni? Here are some things to think about.
So – you're finally out of education, have got your feet under the table at your new job and are awaiting that first graduate paycheque. Good times. While it is undeniably tempting to spend the lot the minute it hits your bank account, that (sadly) might not be your best move.
Understanding your money is the key to keeping it (and eventually making more) - so we’ve rounded up our top tips for any graduate looking for some basic financial wisdom.
Note this is not intended to be regulated financial advice and there is no substitute for professional advice from someone who understands your individual circumstances. This simply introduces you to some concepts that are worth thinking about!
Start budgeting
Looking at your income and outgoings, and working out how much money you have to spend each month, is a crucial first step. Start by listing your monthly income (from your job, side gigs, etc.) and fixed expenses (rent, bills, transportation, etc.)
Once you can see how much you’ll have left over after non-negotiable expenses, start allocating a portion to different categories, like eating out, gym memberships, and shopping.
Budgeting apps like Monzo and Emma can help you stay on top of your spending caps, and will send you an alert if you’ve overspent on any category, meaning you can shuffle your money around to accommodate and won’t end up short before your next paycheque comes in.
Create a ‘just in case’ fund
We hate to say it, but unexpected bills and payments have featured a lot more in adult life than we had hoped. Whether it’s an energy price increase impacting your bills, or a hen/stag do you can’t get out of demanding expensive flights - it happens to the best of us.
Having a little stash of money set aside means you’ve got a cushion for when the hard times hit. Plus, it’s great at soothing you in the middle of the night when the random financial anxiety creeps in. Putting away whatever you can and doing so consistently, even if it is only a few £pounds per week is a good start.
This is an easy way to think about starting to save if you’ve never been employed and earned your own income before. We like to think about savings in two buckets: short term for reasons like the above, but also long term to do things that you are really desperate for. There are so many apps and products out there designed to help you save, just checkout moneysupermarket.
Understand your workplace pension
Take the time to get to know your workplace pension, and decide what contributions you want to make. You will automatically be enrolled into a Pension scheme (if you’re eligible), but it’s a good idea to understand what the scheme is, how it works and, if your employer does any contribution matching, make sure you’re making the most of it — it’s free money!
Being frugal is kinda cool
Being on top of your finances will help you make better choices and can actually free you up to do more. By not taking on a rental contract or car loan you may not be able to afford, and keeping your outgoings to a minimum, you can plan and do much more with what's left.
If you’re thinking about the long term and getting on the property ladder you may even want to start paying attention to your credit score, which you can check using services like Experian, Equifax, or Credit Karma to ensure it’s accurate and to monitor your credit health. They also offer advice on how to improve your score should you need to.