How To Be Money Smart In Your 20s - From The Graduate World To The Corporate World.

Life as an undergraduate can be expensive if finances are not properly managed, from takeaway coffees to student nights bank balances can struggle to keep up with all these expenses however, life as a graduate student stepping into the corporate world should motivate students to become more money smart and spend less on unnecessary purchases by knowing the differences between needs and wants.

It can be a stressful, scary and nerve-wrecking time making the move but here are some tips which I believe will make the transition a little smoother in terms of finances…

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Learning how to budget from a student is a very important skill to acquire as it will benefit you the whole way through your life. If you are either trying to save up for a once in a lifetime holiday or planning on purchasing your first car as a reward for yourself from graduating or whether you want to have that emergency fund , a well thought out budget is what is necessary for you.

Here are some useful tips to help you get on the right track with your budget;

• Firstly work out where you stand with your income.
• Figure out where all your money is going (Essentials vs Non essential expenses)
• Form a weekly realistic budget
• Use budgeting tools such as budgeting apps

2.  Food Expenses:

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This one may seem like a very obvious tip however, prepping and planning your meals and bringing in your own snacks and lunch into work will prevent you from unnecessarily eating out and paying for overpriced food and drinks. If

you are still living at home the costs won’t be as much but for those graduates living outside of home ensure that you

• Make a weekly food budget and stick strictly to it.
• Buy in bulk if there are items you use regularly.
• Take advantage of deals on offer.
• Don’t waste leftovers.
• If sharing accommodation split the cost of the weekly shop.
• Bring your own water bottle around with you and coffee cup if needed to eliminate costs on paying for an overpriced water bottle and to also be environmentally friendly.

3. Transport:

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Commuting into work each day may seem like a costly expense however, if your commute is pre planned the journey in and out each day won’t break the bank.

Here are some tips to help make your journey in and out of work each day hassle free:

• If you are starting a new position in an office which you have not been in before, ensure you pre plan and check the journey from where you live to the office and assess all your options, even try and do a trial trip one morning.
• Options may include, Buses, Trains, Luas, Cycling, Driving or even just a short walk if you are very lucky which will of course be free!!
• If opting for the public transport options, ensure you have yourself a travel card such as a Leap Card which will provide you with cheaper fares and prevent you from having to scramble to find loose change each morning.
• If you have your full drivers license and a car, check with your office if they have parking facilities you could avail off for a reduced rate or even free of charge!!
• Avoid ordering taxis just because it may seem like the ‘easy option’. If coming home late at night, see if you can taxi-share with friends to split the fare.

4. Be smart with savings:

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Being smart with your savings in your 20s is very beneficial for your future. One very smart tip which I heard about and find very yourself is to set up a savings account at a different bank to your checking account. For example, use your Bank of Ireland account as your everyday account and then set up an AIB account as your savings account. This tip will decrease the temptation to frequently be pulling savings into your main account as you will not be seeing the temptation. The savings can not also be moved quickly between accounts as it usually takes around two to three business days for the funds to go through. If you stick to this tip you will start to see a nice amount of funds for those ‘rainy day’ purchases.

The following are some basic financial mistakes to avoid in your 20s:

• Going into debt.
• Relying on using and living off credit cards.
• Failing to financially plan.
• Not tracking your spending.
• Careless spending.

At the end of the day, don’t be too hard on yourself as you are still young and evidently going through some of the best years so the panic about finances should not be taking over. Once you are clever with your finances it certainly is possible to save money without being too restrictive. You will be able to find ways to treat yourself and even eventually purchase that dream car that you have been working hard to save up for.

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