Business

Saturday March 28, 2009

Grads need to make themselves marketable

By EILEEN HEE


THERE’S a common joke about college students and how well they manage money. Most undergraduates are usually so broke that there’s no money to manage!

The thing about university life is that everyone pretty much expects you to have no cash, to scrap by on a part-time job and live off student loans. But soon after graduation, society expects you to instantly become financially responsible. No more dozing off in class. Get up and go to work instead. You no longer have a good case to borrow hundreds or thousands of dollars from your parents. Instead, you’ll need to work to settle your student loan.

This reality can be a rude awakening and may push some graduates to pursue another degree and go back to school for a few more years, just to get away from all that responsibility. In addition, these days, college diplomas no longer assure comfortable and high-paying jobs.

Most fresh university graduates are earning a monthly salary of between RM 1,800 and RM2,300.

The question is – how can fresh graduates get an edge over the rest when seeking a job and how can they manage their finances?

To get an edge in the workforce, recent foreign graduate Elisha C has one simple suggestion – travel. Taking a year out to travel can provide “soft skills” such as planning, initiative, decision-making and problem solving, which other university graduates may lack.

“Going backpacking and hitting the road undoubtedly hones life skills,” she says adding that devoting a year to travel was a character building experience that added weight to her CV.

Arul W, who travelled by bus from England to Kathmandu right after graduation also advocates globetrotting. “I learned about myself and learned about other people. Then, at 18, I wasn’t an adult but was cocky and arrogant. When I returned home from the trip, I felt like I’d turned into an adult,” he says.

To be marketable, graduates should be knowledgeable about a variety of subject matters and not just about the field of their major. He says that graduates should be able to hold a conversation on the science of how a pie is made to simple plumbing.

“Its about having a myriad of skills,” he says.

He points out that from his travels, graduates from other Western countries had an inclination to be more knowledgeable and articulate “because they are avid readers and watch documentaries.”

Voluntary work could also be an avenue to build confidence and leadership skills and there are plenty of such opportunities available. “Altruism looks good on a CV,” he adds.

Sandy Samuel doesn’t like to waste time. She says that to carve that edge to enter into the world of employment, one should start from the undergraduate days. “Hold a variety of jobs within the scope and do internships in big companies,” she says.

“If you are competing for a job with other graduates with similar qualifications, a year’s work experience may impress the employers. It basically says: ‘I’ve already worked with clients,” she says.

Once you’ve landed the job, it is hard to ever forget the feeling when you get your first paycheck. But try to resist the urge to splurge.

Financial planner Chear Wheng Khet urges fresh graduates to start managing their new salary early.

“Most graduates earn RM1,500 to RM2,500 upon graduation and if you deduct their monthly contribution to EPF, their monthly take-home pay is RM1,100 to RM2,000.

Typically, the average spending pattern of a fresh graduate who has just entered a new job will be something like this – RM500 for rental, RM200 for public transport, RM400 for food, RM150 for personal care, RM100 for recreation and sports and perhaps be able to save about RM250 a month.

With student loans to settle, the need for a new wardrobe and possibly relocation cost, below are some of the tips to help newly-employed graduates to build a secure nest egg:

·Open a financial freedom account and deposit 10% of your monthly salary there every month.

·Keep proper records of spending to monitor.

·Set a monthly expenditure budget and compare that with the actual amount spent. There are free software in the market that can be used.

·Buy a medical card to protect against hospitalisation and surgical cost if the cover from the employer is inadequate.

·Create an emergency fund for rainy days; put this money in fixed deposit or money market fund. The amount should be around 3 to 6 months of monthly mandatory expenses.

·If you really need to use the credit card, pay them in full by end-month. A credit card should be treated like a form of payment, not extra money.

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