Aw Yeah, Personal Finance! | The Odyssey Online
Start writing a post
Student Life

Aw Yeah, Personal Finance!

How to spend your money after graduation and rent and monthlies and food and debt and...

49
Aw Yeah, Personal Finance!
Business Insider

NOTE: This is just a short rant about basic financial advice. For more advanced things, seek advice from a professional or teach yourself through research online or at your local library.

So you've graduated, gotten your job, and have started making those sweet, sweet stacks (regardless of how small they may be, relative to how much you were making before you had a job, they are still stacks). You're sitting at home, looking at your first paycheck sitting comfortably in your bank account and you suddenly realize that you're not certain that you're spending it correctly. You have no formal or informal training in taking care of your own money, because schools stopped teaching those classes in the late 80s and your parents have always helped you take care of this sort of thing up until now. Well, the beauty of being human is that there's always time to learn, especially now that you are trying to pursue delicious financial independency.

First of all, it's okay to ask for help either in learning or in making it to the next month. Your parents are valuable sources of information and are probably more interested in helping you succeed than watching you fail. Another excellent source is the internet, which is full of solid advice and those willing to lend it. I myself tend to lurk around the personal finance subreddit, picking up tidbits of knowledge to help me reach my monetary goals. Here are some of the things I've picked up.

When it comes to a place to live, try not to spend more than a third of your monthly income between rent and utilities. So if you make $900 a month, no more than $300 of it should be going to housing, unless you can justify giving up an extra $100-200 for a prime location or decent living space. This is also the first expense you should take into account, as the roof over your head is probably the most important asset to your functionality. This price should be set in stone, make sure it's not likely to change at any point during your residency. Make sure your housemates are not going to abandon ship unexpectedly, make sure your landlord is reasonable, and make sure you don't use too much water, electricity, or gas. Keep this amount as constant as possible.

The expenses that allow you to function in society are your cell phone, internet, and car insurance. Most places won't hire you without a way to contact you or a form of reliable transport, and most places' job applications are entirely online now anyways. Do what you can without these until you can afford to regularly upkeep them, and when you can, try and be keep these fees as close to under a third of your monthly income as possible. At this point, I will mention that haggling is acceptable and should be pursued whenever possible. The majority of salespeople are looking to make a sale wherever they can and might be willing to take a hit if it means getting a regular customer. These three fees should also take priority over any monthly fees that are for entertainment purposes.

The last third of your income gets spent in a few ways in order of importance:
1. Food: On a budget, a single person can survive pretty well on about $45 a week, but spend what you feel is appropriate so long as it doesn't extend past a ninth of your income. If you have a medical condition (celiac, primarily), then you should spend a bit more so you can nourish yourself properly.
2. Debt: Pay this off as quickly as possible, but do not starve because of it. If it begins to make you struggle, contact your bank and help them to help you create a plan that will get rid of it. Much like the salespeople, they just want their money, they don't really mind how quickly it comes in.
3. Savings: After food, make sure that a certain amount of your money goes straight into an account that you will not touch except for emergencies or large purchases (which should rarely exceed a tenth of these funds).
4. Hobbies: The things that help you keep your sanity and give you a sense of fulfillment. You can reasonably pursue and sustain up to two of these on a reasonable budget, but one should do you just fine. These are not really a luxury as they help you remain a human being enough to keep going until you arrive at a more ideal situation, and can also help you generate income in some cases.
5. Entertainment and luxuries: Different from hobbies, because entertainment doesn't really fulfill you in the same way, nor does it offer potential money back, and so it takes a lower order of importance.

In the world we live in, your money is your most important resource, second only to air. Treat it with respect and care, put it in the best possible places, and it can help you achieve your goals. Again, there is much much more information on good ways to manage your money, and your access to it is virtually unlimited so long as there's a library nearby or some wifi. Never stop pursuing or improving your financial stability and do whatever it takes to achieve it.

Report this Content
This article has not been reviewed by Odyssey HQ and solely reflects the ideas and opinions of the creator.
Entertainment

Every Girl Needs To Listen To 'She Used To Be Mine' By Sara Bareilles

These powerful lyrics remind us how much good is inside each of us and that sometimes we are too blinded by our imperfections to see the other side of the coin, to see all of that good.

541052
Every Girl Needs To Listen To 'She Used To Be Mine' By Sara Bareilles

The song was sent to me late in the middle of the night. I was still awake enough to plug in my headphones and listen to it immediately. I always did this when my best friend sent me songs, never wasting a moment. She had sent a message with this one too, telling me it reminded her so much of both of us and what we have each been through in the past couple of months.

Keep Reading...Show less
Zodiac wheel with signs and symbols surrounding a central sun against a starry sky.

What's your sign? It's one of the first questions some of us are asked when approached by someone in a bar, at a party or even when having lunch with some of our friends. Astrology, for centuries, has been one of the largest phenomenons out there. There's a reason why many magazines and newspapers have a horoscope page, and there's also a reason why almost every bookstore or library has a section dedicated completely to astrology. Many of us could just be curious about why some of us act differently than others and whom we will get along with best, and others may just want to see if their sign does, in fact, match their personality.

Keep Reading...Show less
Entertainment

20 Song Lyrics To Put A Spring Into Your Instagram Captions

"On an island in the sun, We'll be playing and having fun"

425132
Person in front of neon musical instruments; glowing red and white lights.
Photo by Spencer Imbrock on Unsplash

Whenever I post a picture to Instagram, it takes me so long to come up with a caption. I want to be funny, clever, cute and direct all at the same time. It can be frustrating! So I just look for some online. I really like to find a song lyric that goes with my picture, I just feel like it gives the picture a certain vibe.

Here's a list of song lyrics that can go with any picture you want to post!

Keep Reading...Show less
Chalk drawing of scales weighing "good" and "bad" on a blackboard.
WP content

Being a good person does not depend on your religion or status in life, your race or skin color, political views or culture. It depends on how good you treat others.

We are all born to do something great. Whether that be to grow up and become a doctor and save the lives of thousands of people, run a marathon, win the Noble Peace Prize, or be the greatest mother or father for your own future children one day. Regardless, we are all born with a purpose. But in between birth and death lies a path that life paves for us; a path that we must fill with something that gives our lives meaning.

Keep Reading...Show less

Subscribe to Our Newsletter

Facebook Comments