As a new graduate organizing your priorities is an important part to controlling your spending, overcoming unexpected financial changes, and achieving financial goals.
Budget priorities for a new graduate include:
- Identifying your “needs” and your “wants” – limit spending on “wants”
- Building an emergency fund for unexpected expenses
- Paying off your student loans
- Building a great credit rating by paying all of your bills on time
- Start saving! Look into RSPs, TFSAs or your employer’s pension plan.
For more information, take a look at the budgeting infographic.
Tip: You can get an estimate of your anticipated position earnings by using the Wage Search tool from the Canadian Job Bank.
Consider the 50/20/30 Rule
If you don’t want to track of all your expenses precisely, keep the 50/20/30 rule in mind to budgeting.
- Essential Costs: These are the “needs” you outlined earlier. Some examples include shelter, food, and transportation.
- Financial Priorities: This will go towards debt repayment, savings and emergency funds.
- Lifestyle Priorities: These are the “wants” you outlined earlier. They reflect what is important to you such as entertainment, hobbies, and fitness.
Tip: Your outstanding student loan amount and required monthly payment is outlined here