How to be a rich graduate after university?

After several long hard years of studying, being in debt, living on beans n' toast; things have finally paid off by securing yourself a good job. With the 8 till 5 job, making enough to get  a nice car, nice clothes and travel foreign countries, doesn't make you any richer than a student.

Many graduate still struggle financially after securing a good job and others start early savings at the very start of their career. For this article, these two graduate shall be name as 'Credit-Card Bob' and 'Stingy Simon'.

'Credit Card Bob'
When Bob finished his university, he earn himself a good job at  a top employer firm for his field of work. Since his graduation, banks have offered him loans and credit cards. Thinking he can repay the bank in a couple of months time, Bob gave his signature and agrees to the terms and condition.

Bob's lifestyle change drastically. New clothes, expensive restaurants, fancy laptop are few of many things Bob have signed for. Payments through his credit cards/loans comes promptly on time and Bob's happy making the payments.

The company bonus was released after Christmas. It was a good year for the company and Bob's hard work in the office have been paid with a handsome bonus. The money was later use to clear his credit card debts. I asked Bob how much savings does he have and Bob replied:-

Amex credit limit = £4000
Citibank Visa credit limit = £5000
Money available to spent = £9000
Savings = £0


'I have £9000 to spent for the next few months!' I feel so rich that I will fly to South Africa and watch the World Cup with my girlfriend.


'Stingy Simon'
Stingy Simon had his fair share of parties and Epic nights during his university years. Same as Bob, Simon joined the same company after graduation. At work both Simon and Bob excel in their field of work and always praised by higher management.

Simon still shops at Asda for his groceries and daily need for the house. Occasionally Simon drops by Mark and Spencer for a nice bottle of wine on special occasions.  Simon claims Boots, Tesco, Nectar store points whenever he can during shopping. Bob laughs at Simon at times because Simon is trying to save a couple of pennies. However Simon honestly enjoys his shopping for a good bargain on his weekend routes to the shop.

Credit card and loan company have also approached Simon. Being cautious of the interest rates and his unfinished student loans he refuses the offer and just stuck to a strict budget regime. The company bonus came as well for Simon. I ask Simon how much savings do you have and he replied:-

Credit Card = NONE
Student loan = £2000
Bonus = £9000 (same as Bob)

Paid off student loan and savings = £7000


'I have £7000.00 only, considering investments for the future'


Bob Claims he has £9000
Simon Claims he has £7000

By comparison Bob seems to be £2000 richer than Simon.
Bob is spending money which he doesn't own and Simon is saving money which he rightfully own.

Two people can have entirely different perception and neither of them are wrong. These are real-life examples which are common across the younger generations today. Bob will always be working in the same rat race day in day out trying to pay his debts off. While Simon is saving his hard earn cash and spending wisely; eventually earn enough for a capital return investment such as house, bonds and shares.

It all comes down to strict budgeting and discipline of money spending. Saving pound a day can help you save £365.00 a year. What can saving a couple of hundred pounds a month enable us to do?

A wise man once said:-

A Student is someone who can make £10.00 each day

A Master is someone who can save £10.00 each day