6 Investment Tips for College Graduates

The final year of college is probably the most overwhelming period of one's school life that no one stops to think about their future investment plan. The last semester, especially, is a mixture of excitement and trepidation. You have officially cleared the 8-4-4 system, and you are ready to step into the working class officially. In your mind, you have your first few paychecks budgeted for all the stuff you have desired but never got the money to buy. But wait; there are other important things than those flashy things you have always wanted.

Save, save and save- You ask how? Well, this is how you do it. Once you start working, the first thing you should do is open two accounts, a checking account, and a deposit account. The opening two of accounts is probably the best advice I got from my dad after clearing college. I know I will thank him later.

Have a pre-planned budget- once you land your first job; ensure you have drafted a budget on how you want to use your money. Regardless of how much you earn and on what basis you get paid, you need to plan your money. Decide how much you will be spending monthly and how much will be going into savings.

Avoid debt accumulation- I have a friend of who takes an overdraft every other month, his salary which is way higher than you would expect finishes up on the third day. Worse still, he is ever in debt with friends and fast money lending institutions. I know there are many others out there who are like my friend. You will be surprised to know that the things that put such person into so much debt are not that important. It takes a lot of exercises to use your money only on the most important stuff.

Cancel that credit card- why on earth will somebody earning a good salary and has no family want a credit card? Owning a credit card is the worst temptation you can ever have in your pocket. I have been a victim, and within the two months that I owned the credit card, I have to admit the kind of stuff I bought with it were ridiculous. That was not until I went to the bank and got half of my salary deducted! Don't wish to know how fast I shredded that card. If you must own one, you need to be very smart and disciplined on using it.

Start paying off your student loan immediately- if you depended on HELB loan, it is a wise idea to start paying off soonest. Don't postpone until you start getting a "fat" salary. That time might never happen anytime soon. Include the loan payment in your pre-budget immediately you get a notice that you need to start paying.

Ensure you are paying your medical cover- you are now an official grown up and no longer depends on your parents medical cover. Make sure you have a good medical plan. Many companies have plans for their employees while still paying the mandatory NHIF. In case your employer is limited to NHIF alone, try getting a personal cover from one of the many insurance companies. Some are quite affordable and can help you big time on a bad day.

Congratulations graduate! You just climbed your way to success simply by following the above tips.

#FlorenceKarimi