Investing in education is the primary step to financial security and the decision is taken by people with a hope that you get placed in decent salaried jobs or sometimes high-paid jobs.
Getting a job right out of college is very hard even if the economy is thriving. The pandemic has devastated the job market so much that the numbers are worrisome with over 40 million people in the U.S. unable to work at some point due to COVID-19.
The chances of the professional world willing to hire fresh graduates to look bleak and hence lateral thinking can aid you to tackle the emergency.
Job Market Is Demand Driven
Every individual graduating from a college seeking a job is telling employers that he or she is ready to serve them for a decent salary. It does make sense to the employers if the opportunities are good enough and hiring is not a problem. On the contrary, if it is a recession then it disturbs the equilibrium and leads to a mismatch in the ratio of opportunity vs. workforce.
The job market entirely depends on the business possibilities and demand for the same.
With the current crisis controlling the economy, no company will bet their chances of recruiting fresh graduates. Companies have the advantage of appointing experienced individuals, who given the high unemployment rate will compromise with the pay. Investing time to train a fresher is avoided whereas an experienced employee will get the job done in less time.
Obviously, experience and knowledge for less salary benefit the organization.
Budgeting: An Opportunity To Learn
The pressure and desperation of getting a job for postgraduates are understandable but the silver lining is you can get a taste of budgeting during difficult times such as a pandemic. The lessons that you learn in this phase will help you mature, grow stronger, and realize the importance of money management.
Get Used To The Basics
Naturally, at your age, there is a problem in prioritizing the cost for essentials and non-essentials while spending on the latter is quite common. The necessities must always be at the top of your list and evaluating what you need for survival is crucial.
Employment and income are unstable and a change in your lifestyle is recommended. The time is appropriate to bring in discipline in the way you spend money.
As you scout around for a job you need to secure the funds that are left in the kitty. If you are lucky to get a part-time or freelancing job start your savings right away.
Your basic expenses are rent if you’re staying away from family, utility bills like groceries, food, and gas. Savings is a parallel process and leaving it untouched can come to your rescue when you are running out of cash. The question is if your earning is used up only to clear the bills and the savings become negligible, then what? Here comes the concept of good debt, savings need support as well to be converted into an emergency fund. Pay your bills through payment apps so that the funds allotted for the same are diverted to savings. The payment app services provide interest-free funds and also help in buying you time to repay the borrowed money.
Planning And Practice Leads To Progress
Miscellaneous expenses like online shopping, food orders, and binge shopping are the actual culprit affecting your savings in the long-term. The key is planning your spending on essentials that are part of your daily life. The results can wait but the practice of saving money regularly is the foundation of your financial stability in the future.
Till you bag an offer of a full-time job, adopting a strict methodology to save funds during the COVID-19 pandemic allows you to reap the benefits later and it will be worth the efforts.
By Karthick V.