Life After School: Tips to Create a Strong Financial Future

Ah yes, life after school. Welcome to a bold new world where you aren’t forced to spend thousands on textbooks and where participation doesn’t count as half your grade. Oh -- and you know that nightmare you’ve had for the past few years? The one where you show up to write that final exam naked? That’s gone too! Good times.

And what’s more, the fun is just starting! Because, you’re at the beginning of very rewarding journey towards a strong financial future.

OK – yes, we know. This may not strike you as the most thrilling journey in the world. But along the way wouldn’t it be amazing to be able to afford that sweet ride you’ve been thinking about? And we know you’ve always dreamed of taking 6 months off to take that trip around the world. Or better yet – you could retire early and build that log cabin you’ve been dreaming about! Those are the kind of perks building a strong financial future gets you.

So, now that you know where the rewarding journey is headed, where do you start? The answer is refreshingly simple. You start here, and now, by following these 3 great tips:

1. Make saving a habit.

Congratulations: you managed to make it to those classes on early Monday morning. And even more admirably, you stayed awake through them (at least, through most of them). You proved that if you put your mind to it, you can make anything a habit.

So, now’s the time to take your amazing talent for developing habits, and apply it to saving for the future. If you could put $100 a week towards an RRSP your life savings could look something like this: using an average rate of 10%, a 25-year old who contributes $5000 annually to his or her RRSP will wind up with $2,212,965 at age 65. Yes, that’s right. $200,000 in lifetime contributions could turn into over 2.2 million, not bad, not bad at all. Don’t worry though, you don’t have to start with $100 a week, any amount is better than nothing.

To make it even easier to become a multi-millionaire you can set up automatic transfers to your RRSP or even to a straight up savings account here at Weyburn Credit Union, just ask, and we will automatically deduct a pre-set amount each week, every other week, or any other frequency you choose.

2. Shop sensibly.

Now that costly tuition and $100 textbooks are behind you, it may be tempting to start buying all of the cool things you’ve been putting off – like a new iPhone, or maybe even an awesome new car.

As enticing as it may be to let your credit and debit cards go crazy, you’ll be doing yourself a huge favor if you shop sensibly and stay within your means. Yes, we know that doesn’t sound like fun. But, it’s a lot less fun to be overwhelmed by debt. Because when that happens, you won’t just have to sell your cool stuff. You might also be forced to accept a job that you don’t love, just to pay the bills. Not cool.

3. Build a good credit history.

Though you may still be a few years away from deciding what colour you’d like your new Benz to be, or whether you should buy your winter home in the Bahamas or South Beach, it’s never too early to start building a good credit history. And you do this by regularly paying your bills, which include your student debt, credit card debt, car loans, and other financial obligations.

In less time than you think, your good credit history will allow you to apply for loans and even a mortgage at an attractive interest rate, which can springboard you ahead much farther on your journey.

Talk to Us to Get Started

Your personal journey towards a strong financial future doesn’t have to be long and difficult, and you definitely don’t have to go it alone. Simply drop by your local Weyburn Credit Union branch, email us at info@weyburncu.ca, or call us at 306-842-6641 to schedule a chat with one of our friendly Financial Advisors.

We’ll help you learn more about the solutions we offer that are designed for members just like you. And, we’ll help ensure that the most rewarding time of your life is yet to come!