{"id":331,"date":"2020-03-14T06:02:19","date_gmt":"2020-03-14T06:02:19","guid":{"rendered":"https:\/\/www.invest19.com\/blog\/?p=331"},"modified":"2020-03-14T06:02:22","modified_gmt":"2020-03-14T06:02:22","slug":"financial-dilemma-amongst-fresh-out-graduates-saving-or-spending","status":"publish","type":"post","link":"https:\/\/www.invest19.com\/blog\/financial-dilemma-amongst-fresh-out-graduates-saving-or-spending\/","title":{"rendered":"Financial Dilemma amongst Fresh out Graduates: Saving or Spending?"},"content":{"rendered":"<div style=\"margin-top: 0px; margin-bottom: 0px;\" class=\"sharethis-inline-share-buttons\" ><\/div>\n<p>The moment we receive our salary, we tempted to buy a lot of things that we\u2019d in our mind for a while. It is common amongst fresh out graduates who went to college to acquire skill sets, qualifications and enhance knowledge that enable them to seek \u2013 skilled employment so that they can fulfil their desires to have an enjoyable life. By the time they came out of colleges, they get a job and start getting a decent salary. It is the moment when they find themselves in a state of fear or uncertainty <em>aka<\/em> \u2018Financial Dilemma\u2019 whether to start saving for their future or spend to fulfil their short-term desires now that they have that kind of money at hand. Truth is, it is the moment when reality hits them and they are bound to take some necessary financial decisions which may cause financial dilemmas such as managing debt, preserving capital, saving income tax or invest to generate optimal returns etc. <\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"counter-hierarchy counter-decimal ez-toc-grey\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\"><i class=\"ez-toc-glyphicon ez-toc-icon-toggle\"><\/i><\/a><\/span><\/div>\n<nav><ul class=\"ez-toc-list\"><li><a href=\"#Cause_of_Financial_Dilemma_Amongst_Fresh_Out_Graduates\" title=\"Cause of Financial\nDilemma Amongst Fresh Out Graduates\">Cause of Financial\nDilemma Amongst Fresh Out Graduates<\/a><\/li><li><a href=\"#Saving_Vs_Spending\" title=\"Saving Vs Spending\">Saving Vs Spending<\/a><\/li><li><a href=\"#Early_Investing_A_Way_to_Get_Rid_of_Financial_Dilemma\" title=\"Early Investing: A Way to Get Rid of Financial Dilemma \">Early Investing: A Way to Get Rid of Financial Dilemma <\/a><\/li><\/ul><\/nav><\/div>\n\n\n\n\n<h2 class=\"wp-block-heading\">Cause of Financial\nDilemma Amongst Fresh Out Graduates<\/h2>\n\n\n\n<p>It\nis due to two reasons that we find ourselves in the financial dilemma i.e.\nimpulse shopping and peer pressure. Well, impulse shopping will always be one\nof the top problems amongst youngsters who came fresh out of colleges as they\nhave a force of habit of spending money on unnecessary things that they don\u2019t\nreally need. The day they get money in their pocket, they start to spend it on\nweird things that play no role whatsoever. To stop this, they uninstall apps\nlike Paytm, Zomato, Swiggy, Amazon, and other apps that they often use for\nimpulse shopping. However, uninstalling apps is not the solution because the\napps are not actually the problem.<\/p>\n\n\n\n<p>Another\nbig issue is peer pressure. I don\u2019t know if you know about this but it is very\ntrending among youngsters to pay for social media. They pay for DSLR clicks,\nlikes, and comments just to get proper attention over social media. In doing\nso, they spend around 1K-2K per month. It is not like these people are models\nor anything, it is the peer pressure that made them do so. <\/p>\n\n\n\n<p>An\nurge to be accepted in a friends\u2019 community or group made us do certain things\nthat cost us a lot. Well, to be honest, these are the two most common reasons\nbehind the financial dilemma amongst youngsters. <\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Saving Vs Spending<\/h2>\n\n\n\n<p>It\nis said that to live life on your own terms you need to spend less and save\nmore to ensure that you have investments to generate a corpus that allows you\nto achieve your financial goals and maximize your long-term financial security.&nbsp; The more people participate in capital\nmarkets and make investments, the more the economy will grow strong over time.\nThe saving is indeed good for the economy of a country but sometimes the truth\nis more complicated than that. <\/p>\n\n\n\n<p>According\nto many economists, spending plays a significant role in the growth of an\neconomy as it is the only thing that keeps it afloat. The logic behind this\nreasoning is generally derived from the \u2018circular flow of economy\u2019 model. It\ntells that the cash flow in the economy is circular in nature and one person\u2019s\nspending is another person\u2019s earning, and vice-versa. <\/p>\n\n\n\n<p>Apart\nfrom this, it is the spending that increases employment. So, if people start\nspending less, the jobs will cut down. As a result, the purchasing power of\npeople will get weaken and they will find it difficult to afford things. If\nthat happens, the negative sentiment will flow in the market and the economy\nwill start going down. But, there is a major flaw in this approach. As the\nincreased spending will help in increasing the gross domestic product (GDP)\nhowever in the long-term, it will lead to more indebtedness. In addition to it,\nthe people will have the spending state of mind which will stop them from\nsaving money for long-term. <\/p>\n\n\n\n<p>Thus,\nit is important to make a&nbsp; balance\nbetween spending and saving. What\u2019s important is to encourage savings and\ninvest money in financial instruments, in the hands of people who intend to use\nit for productive use. Saving money under a mattress is going to help neither\nyou nor the nation. <\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Early Investing: A Way to Get Rid of Financial Dilemma <\/h2>\n\n\n\n<p>It\nis all our desire to achieve financial freedom to ensure that our future is\nsecure and we have enough funds to carry out our short-term and long-term\nneeds. Life is uncertain and one way to safeguard yourself against any\nunfortunate demise is to do investment for the future. It is the only way to\nsecure the financial future of ourselves and our loved ones. And investing in\nearly age is the best way to accomplish that. <\/p>\n\n\n\n<p><a href=\"https:\/\/www.invest19.com\/blog\/importance-of-investing-early-in-life\/\"><strong>Investing early<\/strong><\/a> can put you out of\nthis eternal struggle of saving or spending and allow you to make investments\nfor capital appreciation. Unfortunately, many youngsters don\u2019t give a lot of\nthought as they are way too distracted towards things that they don\u2019t actually\nneed. Instead, one should start investing as early as possible to benefit from\nthe magic of compounding in investing in high-risk high reward investment\noptions that face pace the wealth creation to attain the desired capital needed\nfor retirement or other financial goals. <\/p>\n\n\n\n<p>At an early stage, you have less of responsibilities and financial obligations that will make it easier reaching the desired corpus earlier. The early investing will improve your spending habits, helping you cut down unnecessary expenses and allow you to be a step ahead. In short, you can better manage your finances that your long-term savings won\u2019t be interrupted by the short-term spending or emergencies and your investments continue to grow over time. <\/p>\n\n\n\n<p>Hope,\nthis will help you with the financial dilemma of saving or spending.\nNevertheless, if you have any doubt or would like to contribute something to\nthis article then don\u2019t hesitate to mention in the comment section below. We\nwill be happy to have you here. <\/p>\n\n\n\n<p>Happy\nInvesting!!!<\/p>\n<div class='epvc-post-count'><span class='epvc-eye'><\/span>  <span class=\"epvc-count\"> 4,787<\/span><\/div><div class=\"pld-like-dislike-wrap pld-template-1\">\n    <div class=\"pld-like-wrap  pld-common-wrap\">\n    <a href=\"javascript:void(0);\" class=\"pld-like-trigger pld-like-dislike-trigger \" title=\"\" data-post-id=\"331\" data-trigger-type=\"like\" data-restriction=\"ip\" data-ip-check=\"0\" data-user-check=\"1\">\n                        <i class=\"fas fa-thumbs-up\"><\/i>\n                    <\/a>\n    <span class=\"pld-like-count-wrap pld-count-wrap\">2    <\/span>\n<\/div><\/div>\n\n","protected":false},"excerpt":{"rendered":"<p>The moment we receive our salary, we tempted to buy a lot of things that we\u2019d in our mind for a while. It is common [&hellip;] <span class=\"read-more-link\"><a class=\"read-more\" href=\"https:\/\/www.invest19.com\/blog\/financial-dilemma-amongst-fresh-out-graduates-saving-or-spending\/\">Read More<\/a><\/span><\/p>\n","protected":false},"author":1,"featured_media":332,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[7,12],"tags":[64,65],"class_list":["post-331","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-investment","category-wealth-management","tag-saving-or-spending","tag-early-investing"],"_links":{"self":[{"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/posts\/331","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/comments?post=331"}],"version-history":[{"count":1,"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/posts\/331\/revisions"}],"predecessor-version":[{"id":333,"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/posts\/331\/revisions\/333"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/media\/332"}],"wp:attachment":[{"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/media?parent=331"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/categories?post=331"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/tags?post=331"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}