Dream Big, Achieve It! Financial Planning for New Graduates to Reach Their Goals

After spending a long time adventuring in university, it's finally time for new graduates to embark on their real-world adventures! Of course, many may have planned extensively on how to manage their finances. So, how much will new graduates actually spend, and how should they plan if they want to follow their dreams?

This isn't a difficult task. Let's plan ahead with Rabbit Finance and take a look at the money you'll need!

Financial Planning to Follow New Graduates' Dreams

• Time to Live Life: How About Traveling to Europe?

After years of studying, many may wish to broaden their horizons. Some might dream of going on a Work & Travel adventure, especially new graduates. This is a great opportunity because once you start a full-time job, taking extended leave for travel becomes challenging.

But did you know that traveling abroad or even just Work & Travel can be quite expensive? This includes flight tickets (even if you wait for promotions). Additionally, there are accommodation costs, food expenses, and travel insurance costs that vary depending on the country you choose to visit, the currency exchange rates, and the duration of your stay.

For example:

If you plan to travel to Europe for 7 days, your estimated expenses might look like this:

• Flight tickets: 25,000-30,000 THB
• Visa fees: approximately 2,500 – 6,000 THB
• Accommodation: (minimum) 1,000 – 2,000 THB per night x 7 = 7,000 – 14,000 THB
• Train tickets: depending on routes and frequency, estimate at least 10,000 THB
• Food: around 500 – 1,000 THB per day x 7 = 3,500 – 7,000 THB

Total necessary expenses: approximately 48,000 – 70,500 THB (excluding shopping or other purchases) for a 7-day trip.

In the case of Work & Travel, many might think it costs less than traveling to Europe independently.

In reality, you still need to pay project fees to the agency, around 40,000 THB. This doesn't include flight tickets, visa fees, and pocket money of about $1,000 or around 30,000 THB. Altogether, it could reach up to 100,000 THB, and be prepared that working abroad may not pay off as much as you think.

As you can see, traveling to Europe can be quite costly due to the currency differences. If you want to save on expenses, consider traveling in Asia, which can be quite interesting. Or if you're genuinely interested in Europe, starting to save money today isn't a bad idea!

• Let's Get Real! Time for a Master's Degree!

Some may choose to gain more experience by going abroad, while others may still have a burning desire to continue their studies and pursue a Master's degree. It's important to note that costs at the Master's level are generally higher than at the Bachelor's level, especially for those not focusing on scholarships.

Typically, the cost of pursuing a higher degree varies by university, but overall, tuition starts at around 10,000 THB. Some universities have different fees for daytime versus evening classes, and those studying part-time to avoid impacting their main job will also face different costs.

Additionally, there are registration fees and costs for various textbooks, which can require you to prepare hundreds of thousands of THB before completing a Master's program.

For those considering studying abroad, this will incur even higher costs due to currency exchange rates, and you might need to prepare up to a million THB. This doesn't even include living expenses, flight tickets, and visa fees.

New graduates may worry about saving enough money. Taking on freelance work occasionally or working while pursuing further studies can help alleviate some of these expenses, as long as you manage your time well.

• Want a Car to Drive Family Around?

With public transport issues, many might want to consider getting a car. Not only can it be used in the city, but it also makes traveling to other provinces or picking up loved ones much easier. However, did you know that buying a car actually incurs more costs than you might think, including:

1. Insurance premiums because most new cars must have comprehensive insurance as required by finance companies (unless purchased outright). Therefore, you should prepare around 20,000 – 30,000 THB for a 1.5-liter car (the higher the car price, the more expensive the insurance).

2. Registration fees vary by model, but typically the dealership adds a small service fee, rounding it to a neat number like 3,500 THB or 5,000 THB.

3. Deposit for the new license plate is usually around 2,000 – 3,000 THB, which will be refunded when you return the car to change from temporary plates to permanent ones.

4. Monthly fuel costs.

5. Other equipment costs, including repair costs if you order additional accessories not included in the package. New drivers may also face repair costs from minor accidents.

Car prices today have many banks offering easy installment plans, but be cautious about additional costs.

These can complicate your car payments. Saving for these additional costs before purchasing can help reduce your financial burden.

• Want a Home or Condo of Your Own?

Many people dream of owning their own home. At the very least, when they get married and start a family, they won't have to burden their parents. Some may find it appealing to have a condo in the city for convenience.

Of course, to own a home or condo, significant funds are required. While it's true that you can apply for a loan from a bank, don't forget that before applying for a loan, there are many other expenses involved in buying a condo or house, such as:

1. Reservation deposit varies by property but generally ranges from 20,000 – 50,000 THB.

2. Contract money is usually a large sum, starting from tens of thousands to hundreds of thousands THB.

3. Down payment is currently required to be at least 10% of the purchase price (including reservation and contract money) due to the Bank of Thailand's regulations on LTV ratios for commercial banks.

4. Appraisal fees are paid on the day of the loan application, averaging 2,000 – 3,000 THB per appraisal. The more banks you apply to, the more you pay.

5. Mortgage registration fees are paid on the day of ownership transfer, typically 1% of the mortgaged value.

6. Transfer fees are also paid on the day of ownership transfer, usually 2% of the assessed land value.

7. Common fund contributions are often used for maintenance or repairs of shared property.

Additionally, there may be other costs such as utility meter fees, building insurance home insurance, or interior decoration expenses.

It can take years of saving and long-term payments to finally own a home or condo.

If you save diligently and set aside funds for these costs early on, it will make paying for a home or condo much easier.

• Want to Get Married? Save for the Wedding!

Many couples who have been together since university want to get married after graduation. But did you know that weddings can be quite expensive?

If you have a large family and strict elders regarding wedding arrangements, the costs can increase significantly, especially if your parents hold high positions. The details can add up, including:

1. Venue and guest meal costs, which depend on the number of guests, can range from tens of thousands to hundreds of thousands THB.

2. Wedding attire and favors, starting from tens of thousands to hundreds of thousands THB. If you can reduce costs by making your own favors or finding affordable suppliers, and choosing less expensive wedding attire, this can help manage expenses.

3. Bride price should be discussed with the bride's family. Some families may not return the bride price to the groom, while others might return it for you to use. It's essential to clarify this to manage your finances effectively. Some families may not even require a bride price.

Overall, we can't specify a clear amount for wedding expenses as it varies widely.

However, weddings can be quite costly, especially if you plan a grand event, potentially requiring a budget of up to a million THB.

(Unless the family is not strict about wedding expenses, it could be done for tens of thousands THB.)

In addition to weddings, planning for the future and having children is also something to consider. If you're confident about settling down with the right person, discussing future savings and wedding expenses early can help you avoid rushing to save money or needing to borrow money for the wedding.

Because every dream requires financial backing, starting to save money today or even before graduation is crucial.

Besides various saving methods, the most important thing to help you reach your financial goals is to focus on discipline in saving.

If you realize that you lack discipline or want to find other ways to save money, consider savings insurance from Rabbit Finance, which offers a selection tailored to different lifestyles, whether it's short-term savings insurance for those wanting to save for a short period or long-term life savings insurance that allows you to save until retirement.

Achieving success isn't difficult; just as important as saving discipline is your physical and mental strength. If you're determined, your dreams will no longer feel out of reach!

Thank you for the information from rabbitfinance.com