5 financially savvy ways to plan for your future (2024)

If you’re a recent post-secondary graduate who is trying to decide what to do for the rest of your life, or know of one, you’re not alone. Transitioning from two decades of the structure that comes with formal education to managing your life on your own can be a significant adjustment.

There’s no one-size-fits-all answer to what comes next after graduation because everyone’s path is unique, and today’s grads will likely have two or even three significant careers before they retire. But as you make choices that align with your goals and values, there are several financial considerations to keep in mind.

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Determine what you like

Start by temporarily setting your stress aside and reflect on the overall experience of gaining your post-secondary education. In all likelihood, the road to graduation was filled with a lot of studying and hard work, punctuated by sleepless nights worrying about course obligations, how to make ends meet and whether you’ll ever be able to pay back your student loans.

But as you think back, determine what you liked best and what you’d like to do more of. Trust your instincts and use these newfound insights to shape future decisions about career opportunities.

Don’t neglect the present

Resist neglecting the present as you focus on planning your future. A big part of this transition time is your budget. Most students are eager to shed their poor student lifestyle in favour of more fun and establishing themselves financially. The trick, however, is to avoid spending more until you can truly afford it.

Until you get to that point, outline a budget for your current situation and aim to not spend more than you earn. If you have student loans, payments will in most cases start six months after graduation. But if you supplemented your student life with consumer debt or high-interest credit cards, you’ll need to factor those payments in right away.

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Work more

Pick up extra hours at work or take on a new part-time job that will cover the minimum required payments so that you don’t fall behind, because a poor credit rating could impact job opportunities. If you had the good fortune to live at home rent free while going to school, ask your parents if they will extend that consideration for a few more months while you get yourself sorted out. If they are able to help, adjust your budget and focus on your job search.

Looking for work is like having a full-time job, so don’t be surprised if most of your day consists of updating your resumé, exploring job boards, researching companies you’d like to work for, networking, seeking out informational interview opportunities and adjusting your cover letter for the various jobs you apply for.

Tap into any help your post-secondary institution provides. Work isn’t only about the money. Although that’s a large part of it, personal satisfaction, career development or advancement opportunities, benefits and enjoyment are important as well.

Examine your benefits

Benefits are ultimately part of your overall compensation package, but many young adults seeking their first full-time job aren’t fully aware of how they work. Avoid underestimating the significant impact of extended benefits on your paycheque and explore the wide range of options available to find ones that align with your goals or needs.

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For example, if you plan to return to school, look for an employer that offers tuition reimbursem*nt and schedules that accommodate part-time studies. Health or vision expenses for yourself or your family can quickly add up and what employers offer varies greatly. Research different options and know what questions to ask when discussing a job offer.

If your goal is to travel, you might want to look for an employer that offers flexible work arrangements or allows you to bank overtime for additional paid time off. And if you want to retire early, employers matching registered retirement savings plan contributions or a solid pension plan may be of prime importance to you.

Reconsider long-term commitments

The desire for future stability often leads us to consider long-term commitments. During times of transition, however, this can inadvertently hold us back. For example, if you need to relocate for work, a discounted cellphone plan with a local carrier might provide reliable coverage in your new city. Depending on your lifestyle, taking on a car loan or lease might prove unnecessary if you end up living close to work and/or public transportation.

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Even setting up utilities in a temporary rental could result in cancellation charges if they can’t be transferred to a new location or if they’re not needed (for example, if a new roommate already has services set up). Paying a little more each month can sometimes save you money in the long run by keeping your options open.

Amidst all your planning and job searching, don’t lose sight of celebrating your achievement. Recognizing that you are transitioning from one life chapter to the next is crucial, both mentally and emotionally. This might just be the closest thing to a rite of passage into adulthood, and framing your emotions this way can positively influence your money management style.

Sandra Fry is a Winnipeg-based credit counsellor at Credit Counselling Society, a non-profit organization that has helped Canadians manage debt for more than 27 years.

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