Budgeting Breakdown

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:

  1. Identifying your “needs” and your “wants.” Limit spending on “wants.”
  2. Building an emergency fund for unexpected expenses.
  3. Paying off your student loans.
  4. Building a great credit rating by paying all of your bills on time.
  5. Start saving! Look into RSPs, TFSAs or your employer’s pension plan.

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.

  1. Essential Costs (50%): These are the “needs” you outlined earlier. Some examples include shelter, food, and transportation.
  2. Financial Priorities (30%): This will go towards debt repayment, savings and emergency funds.
  3. Lifestyle Priorities (20%): These are the “wants” you outlined earlier. They reflect what is important to you such as entertainment, hobbies, and fitness.

Tip: Know your outstanding student loan amount and the required monthly payment.

We offer money coaching for Mac alumni.

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