Graduation can be one of the best and scary times in your life. After graduation, there come financial responsibilities. No stress, but the decisions you make today about spending and saving can be the difference between struggling for the rest of your life and building a strong financial future.
As a twenty-something right after graduation, I had no idea what to do with my finances and how to take control of my money.
Whether you decide to continue your education or look for work, you must manage your money the right way. This is especially true when you are starting. After reading a lot of books, watching YouTube videos and experimenting, here are some tips for surviving finances after graduation.
- Track your fixed expenses
It is not a philosophical mindset not to spend a lot of money on stupid or unnecessary things. One of the best ways to control your money and keep your budget on track is knowing where your money is going.
Whether you buy Hijabs Canada from Hijab stores Toronto or online Hijab stores in Canada, make sure to write it. The goal isn't to bother you so much that you don't want to spend your hard-earned money on finding out too much. The point is to help you know where the money is actually going.
Once you know where your money is going, you will be able to cut out unnecessary or extravagant expenses from your daily life. This habit will help you save more and or spend money on your loved ones.
I am not recommending that you track every single dollar that you spend; rather fixed monthly expenses can be tracked such as car payments, insurance payments, rent payment and etc. Then you can make changes to your daily spending habits because you will know the amount of money left to spend.
- Stay away from debt
If you've recently graduated from college, you probably have at least some student loans or credit card debt. Even paying $100 a month can be surprisingly difficult at this point in your life – but keep going and do it! Do not add more debt or burden by getting additional credit card debt at this stage in your life.
Along with having an emergency credit card, a credit card's wise use creates a much-needed good credit score. It is best to pay off the charges as soon as possible and avoid taking more debts. Get a credit card that has $500 credit limit which forces you to pay off your credit card regularly and helps you stay within budget.
- Get advice
Getting advice from someone’s can be quite boring information, but something you will need to know as an adult for many reasons. You can ask your parents for good advice, attend seminars on financial management, read books, watch YouTube videos or look for your own financial advisor.
Good advice will help you to survive the finances after your graduation in a better way. The more you know about the debt-to-income ratio, saving, budgeting and spending habits; the more you will be able to take control of your finances.
- Find an activity that fits your budget
This applies to any life stage, but especially when funds are limited as a recent graduate, think about how you spend your time. If you find pleasure in shopping and are a hijabi, make a reasonable budget before visiting hijab stores. Your entertainment budget will likely be small, so do things like picnics with friends instead of going for a luxury dinner.
Every activity does not need to cost money and you can enjoy everyday activities by spending a minimal or no money at all. For example, going for a walk on a sunny day, going for a hike or a trail, going out for a run or cooking a nice dinner at home. Do what you enjoy but do it within your means to build long-term financial health!
- Limit your spending
Remember that making irresponsible financial decisions because you are a young person or spending more stops telling yourself this. Otherwise, you will be in more debt five years from now than when you graduated from college. It's a tough pill to swallow, but it's part of becoming a real adult in the real world.
Everyone has their own path, and different things work with different people. To survive finances after your graduation, put yourself in a positive financial position, surround yourself with people who support you when you are on the point of breaking.
Do not be cheap or hold back your wealth but do not be extravagant or overspend and find a middle path that is good for your financial health.
6. Give Charity (Sadaqah)
The best advice that we can recommend is to give away a portion of your wealth to charity. There are numerous Hadith about sadaqah such as below:
Sadaqa benefits the believer not just in this life but in the hereafter as well.
Sadaqa averts calamity and increases sustenance and blessings in one’s life. Allah says in the Qur’an, “Who is it that would loan Allah a goodly loan so He may multiply it for him many times over? And it is Allah who withholds and grants abundance, and to Him you will be returned,” (Qur’an, 2: 245).
The Prophet (peace be upon him) said “Sadaqah extinguishes sin as water extinguishes fire,” (Hadith, Tirmidhi). He also said that Allah offers relief on the Day of Judgement for those who give sadaqa: “The believer’s shade on the Day of Resurrection will be their charity,” (Hadith, Tirmidhi).
Rajab, Shaban and Ramadan are a time to increase our good deeds and to connect with those who regularly go without food and water. Let's try make the most of our blessings by giving to those who need it most.
We also want to recommend Muslim charities in Canada that are making a huge impact not just locally but globally as well!
Charity is a positive engagement, and in Islam, it is obligatory to help others. Not only it makes the charity a supportive task, but it also brings people together in emotional and physical ways to donate. There are lives in the world that you can save through charity. No matter how much you’re donating, it will make some difference in society.
There are a lot of programs and online Muslim charities in Canada to which you can donate. As there are different kinds of organizations, you also can choose the one you want and contribute to the cause you will like to support the most. It doesn't matter which organization you are choosing, as long as it is an authentic one and is working to better the people. Some of the most famous Muslim Charities in Canada are here.
- National Zakat Foundation
It is one of the most dependable online charities in Canada with various programs locally and globally as well – their main goal is make an impact locally. National Zakat Foundation promotes this thought that with the power of Zakat, one can help to change the lives of some of the most vulnerable members of the community, including converts, people with disabilities, single parents, elderly, newcomers, and refugees. They have come up with the mission to offer their end-to-end zakat service. They prefer to establish a self-sufficient and selfless Canadian Muslim community, where no one will be left abandoned.
- Islamic Relief Canada
It is their mission to empower the relationship between their beneficiaries and donors and maintain a high level of transparency. At Islamic Relief Canada, the entire team works with the community to empower their resilience to disasters. It provides essential aid for an emergency when a disaster occurs. It helps the poor to access essential services, including healthcare, sanitation, water, and education. They handle the primary reasons for poverty and make sure that the most vulnerable people worldwide influence advocacy and programs. Their mission is to help all humanity.
- Penny appeal Canada
They work on several Zakat projects. Moreover, the entire team at Penny appeal Canada performs for emergency response, income generation, food security, and water provision. Donating helps out meet people who are inspired by the same reasons behind your level of inspiration. It is a source of creating opportunities. They have awesome partnerships in the Ontario area and they are also expanding within Canada.
- ICNA Relief
At ICNA Relief, the entire team works with the focus that there are no borders, no boundaries. People can work together on those causes on which the vulnerable need assistance. It leads to promote generosity in the community. As per the organization, donation or charity should be encouraged because when people in your family or community observe you donating, it is very likely that they will adopt the same mindset, especially children.
- Nisa Homes
This is a non-profit and non-government organization that can offer a safe, secure shelter for women. At Nisa Homes, converts, veterans, the disabled, and other women come to stay and live here. It supports families, children, and women who experience domestic issues or homelessness. It is the best place for women seeking asylum, and they can get support with religious freedom, including using hijab practices, prayers, and others.
Remember to give in charity on a regular basis such as every week on Friday, every month or quarterly and expect the reward from Allah! Make sure it fits your budget and your lifestyle!