Cash tips for graduates

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By Sylvia Juuko

Thousands of graduates from several universities have recently celebrated a milestone in their respective academic fields.

The field of academia is quite straight forward, depending on your capacity to comprehend and interpret scholarly material and the rules are clear.

However, what is not taught (with the exception of a few learning institutions) and perhaps the most critical is what is considered a life skill — managing your personal finances. For a fresh graduate with no income generating activity, discussing finances may seem farfetched. But remember, you handled allowances while pursuing your studies, therefore handling money is not a strange phenomenon.

Now that you have bagged your academic papers and hosted big bashes, how do you view your financial future? It is important to think about how you handled your allowances as well as the attitude and habits formed. How you approached your finances in high school and university is likely to set the tone for managing finances in the future.

For instance, did you feel a sense of entitlement? Do you think you deserve to be given money as long as you have a need? Be careful with that kind of attitude because it will prove difficult to chart your own financial path. You will expect your parent/guardian to get you a job or bail you out when you are broke.

This means that if you do not consciously work towards changing this attitude, you will expect that somebody will bail you out whenever the need arises. Once you start earning, it will be impossible to plan and save your money; after all, help is around the corner.

Another thing to consider is how you fare amongst your peers. Most of us are competitive, which is not a bad thing. While at the university, your grades were your biggest concern as far as how you fared amongst your peers.

However, the real world is a different ball game. What can help is to get like-minded peers with whom you can set financial goals.

Use your friends as accountability partners for the personal financial milestones you want to achieve.

Once you start earning, your personal finance statement is your new ‘report card.’ Just like American author Robert Kiyosaki says, when you request for a meeting with your bank manager to discuss money matters, he/she will not ask you for your report card or first class degree certificate.

The manager will ask for your bank statement. The lesson here is that while it is very important to excel in academia, it is equally vital to be on top of your game as far as personal finance management is concerned.
 

After graduation, you have to face the real world. How prepared are you? (Photo credit: Kennedy Oryema)

Anyone who is heading out in the real world should remember that they are stepping away from the predictable and structured environment of academia.

To get a good idea, as your parents/guardians what their expectations were and how the reality turned out. If you are lucky, you are going to generate income from your dream job or start a business. On the other hand, you may take years without earning an income. Or you may fall in a category of the underemployed.

Whichever circumstances you fall, your attitude matters most.

Be prepared to apply your skills in any environment that presents itself.

For many, when the euphoria of graduation settles yet there is no source of income on the horizon, it is normal to get frustrated. In such circumstances what you need to consider is the skill set you currently possess.

What is it that you do well that can generate some income?

In addition to that, do not ignore the importance of volunteering, if the opportunity arises. This can be possible if you still have free accommodation at your parents/guardians’ place. The experience garnered through volunteering SECRETARycannot be got from a lecture room.

In the real world, graduates who have landed jobs will be tempted to blow their first salary as a reward for the broke episodes at the university. Unfortunately, this habit of regular ‘partying’ persists over their work life to the extent that the salary can no longer make ends meet.

Cultivating a habit of financial discipline is critical from the start. This habit will allow you to save and invest in assets that generate income that can sustainably support the lifestyle you want.

Ultimately, as you enjoy the celebrations and partying, remember that if you ignore the good cash habits and rules of money, the repercussions will be felt in your lifetime.


The writer works with Bank of Uganda
Personalfinance222@gmail.com