Having clear financial goals is an obligation for everyone, even for those of you who are still fresh graduates and have just started working. Clear financial goals will affect how you plan finances, for example, such as measuring the minimum amount of salary you receive during your first job interview. It’s also easy for you to project priority matters into financial planning later. Therefore, here are some financial goals that you should prioritize.
Emergency Fund Allocation
This financial goal is usually forgotten by many people, especially for fresh graduates who have just started working. In addition to daily needs, you also have to allocate income to be put into an emergency fund post. Emergency fund posts are intended for needs that you cannot predict in advance.
At the very least, you should allocate 10% of your total income as an emergency fund. This means, if your salary is large, then at least it must be diverted to an emergency fund post every month. Don’t use money in an emergency fund post if there really isn’t an emergency going on. Having an emergency fund can make you feel more secure in carrying out your daily activities. Having an emergency fund is also a sign that you are mature and wise in managing your own financial planning.
Pension Fund Allocation
There’s nothing wrong with starting to allocate as well as making retirement funds your financial goal, even if you’re just starting to work. The earlier you set up a retirement fund, the more funds you will collect later.
If 10% of your main income has been allocated for an emergency fund, then try to allocate 20% -30% of your main income for a retirement fund. The percentage is much higher considering your needs after retirement are also not small. When allocating both special funds, both emergency funds and retirement funds, prioritize emergency funds first.
Retirement funds can be a measure of protection and old age security that you can try early on, especially if you work after college without any dependents. This is your chance to save and be better prepared to make a living after you are no longer working.