{"id":42882,"date":"2022-02-16T17:39:08","date_gmt":"2022-02-16T09:39:08","guid":{"rendered":"https:\/\/www.iqiglobal.com\/blog\/?p=42882"},"modified":"2026-01-09T16:10:54","modified_gmt":"2026-01-09T08:10:54","slug":"manage-finances-fresh-grads","status":"publish","type":"post","link":"https:\/\/iqiglobal.com\/blog\/manage-finances-fresh-grads\/","title":{"rendered":"Fresh Grads Still Don’t Know How to Manage Finances (Why is That?)"},"content":{"rendered":"\n

If you have successfully obtained your first job after graduation, congratulations! It is an astounding achievement that you’ve accomplished. Now that you’ve put in the work in your education, traversing through mountains of quizzes, exams and assignments, you’re finally ready to get your start on the ‘adult life’ everyone’s been raving about. But with great power comes great responsibility, and by responsibility – we mean how to manage finances. <\/p>\n

However, be warned young padawan, for the road ahead is not all sunshine and rainbows. As satisfying as it is to finally be able to sustain yourself with your own efforts, many graduates make the mistake of not planning ahead in terms of personal finances. As such, they often either don’t keep track of their spending or worse, spend more than they can possibly afford. <\/p>\n

We’re not here to incite fear, quite the opposite actually – we want to help YOU (Mr\/Ms fresh graduate) have the best or at least, the second best financial planning that will help you keep your expenses in check. The key step to manage finances is to break it down to a foundational level. <\/p>\n

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  1. \n

    What is Financial Literacy? <\/span><\/a><\/h2>\n<\/li>\n
  2. \n

    How Should Fresh Grads Allocate Budget? <\/span><\/a><\/h2>\n<\/li>\n
  3. \n

    What are Common Mistakes that Fresh Graduates Make in Money Management? <\/span><\/a><\/h2>\n<\/li>\n
  4. \n

    Why Are Investments Important? <\/span><\/a><\/h2>\n<\/li>\n<\/ol>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

     <\/p>\n

    1. <\/a>What is Financial Literacy?<\/h2>\n

    \"\"<\/p>\n

    The first step to taking charge of your finances is to embed financial literacy into your veins. Well, not literally<\/em>, but you get the idea. You may read at this term and feel overwhelmed by it’s seemingly ‘complicated’ magnitude, but it isn’t like that actually, not at all. <\/p>\n

    To put in layman terms, financial literacy is basically understanding and implementing your financial resources so you can get the most out of your money – be it in personal financial management, budgeting or investing. <\/strong><\/p>\n

    Personal finances are tough to everyone, and we understand that it can make you anxious, but – the earlier you start understanding and breaking down the complexities of financial management, the sooner you will be thriving in financial literacy. <\/p>\n

     <\/p>\n

    2. <\/a>How Should Fresh Graduates Allocate Their Budget?<\/h2>\n

    \"\"After graduation there are certain key financial responsibilities that fresh grads can expect, most notably are their student loans. <\/strong><\/p>\n

    Take PTPTN for example, which revolves a loan scheme to help students pay out their student expenses, and depends heavily on students to pay back the loan so newer students can benefit from it too. On top of student loans, you may also meet with various other commitments after you graduate, such as rent, monthly car repayments, bills and so on. <\/p>\n

    So the question still stands, how does one allocate their budget amid this situation? There are two rules of budgeting you can follow which are: <\/p>\n

     <\/p>\n

    80\/20 Method 💰<\/h3>\n

    There’s actually not much to explain, the 80\/20 rule simply means allocating 80% to your wants and needs and the other 20% to savings.<\/strong> This budgeting method is excellent for people who want a straightforward, clear cut saving strategy. <\/p>\n

    It focuses on paying yourself first, ensuring that you have money coming in to your savings each month – as well as breaking down the bulk of your salary to your necessities. <\/p>\n

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    50\/20\/30 Method 💵<\/strong><\/h3>\n

    Ah yes, the 80\/20 method actually originated from the 50\/20\/30 method. This budgeting technique breaks down your after-tax income into three categories: <\/p>\n