AFTER years of relentless hard work and dedication, you have finally achieved your goal of earning a college degree. As you walk across the stage, diploma in hand, pride and fulfillment radiate from you. The cheers of your family and friends fill the air, celebrating this monumental achievement alongside you.

This is a thrilling time, so relish every moment. However, once the celebrations end, the selfies are taken, and you've enjoyed your well-deserved break, the true journey begins. You are about to embark on the next phase of your life — adulthood. This transition will bring both the joy and the challenges of newfound independence, offering experiences that will shape your future.

Perhaps in a few months, you will join the labor force, start a new career and make your own money. Now that's the most exciting part: making your own money! But are you truly ready to handle your own finances? Are you equipped with the right skill sets to make wise money decisions?

It's a good bet that most of you never thought of those questions before simply because the only agenda you have right now is how to get a job and make money, right? Well, here's the thing. The way you manage your finances, especially in the next few years of your working life, is the most crucial one.

Now is the time to develop the right money mindset because, chances are, the way you'll treat money when you're starting out will help form your money habits in the future. And your discipline to exhibit good money habits will heavily dictate the outcome of your financial life.

Being in the workforce for the first time is the perfect time for you to get your financial life started on the right foot. Consider these money lessons to help you navigate the exciting "jungle" of adulthood.

1. Pay your "future self" first. Soon you'll face a decision on how to spend your hard-earned money. You will be in a state of euphoria as you hold your first paycheck. Money coming from your own labor, not from Mommy and Daddy — you'll get excited and want to treat everyone in your household to celebrate. Go ahead. Enjoy and celebrate the fruits of your first crack at employment. But after all the excitement and celebration, learn to relax.

Take a deep breath and reflect. Think about your future and ask yourself, what do I want to achieve five or 10 years from now? How do I want to see myself in the future? If you dream of seeing yourself down the road enjoying all the finest things in the world, then you need to start saving for that future. Saving should not be painful if done the right way. Pay your future self first but do not forget to take care of your present self as well. I encourage you to start implementing a simple spending plan that will work for you.

2. A spending plan will help you to keep tabs on where your money goes. Try dividing your monthly income into four baskets:

– Necessity basket — the part of your income that you'll spend on your living expenses like food, transportation, rent and others. Make sure this basket is spent on living expenses alone — shopping not included!

– Investment basket — the part of your income that you'll allocate for your savings and investments. This basket will be your ticket to wealth building and will greatly dictate the outcome of your future self. There's no magic formula on how much you should allocate for this basket but it's a good start if you can allocate 20 percent of your monthly income to this basket and regularly increase it as your income goes up over time.

– Gift basket aka BIR (Bureau of Inay/Itay Revenue) — the part of your income that will be allocated if you want to give back or provide monthly allowances for your parents.

– Feel good basket — the part of your income that will be spent on the "wants" of your present self (finally!) This is your indulgence fund; spend it any way you want, be it on your favorite clothing line, a trip to a fine dining restaurant or a relaxing massage. Treat yourself for working hard.

You see, building a bright future is not entirely about penny-pinching and depriving yourself. It's a balancing act between your today and your tomorrow. Implement a spending plan and allocate more percentage of your income to things that matter to you.

As you step into this new chapter, remember that the way you handle your finances now will set the foundation for your future. Embrace the challenges and joys of independence with a balanced approach to spending and saving. By developing good money habits today, you are paving the way for a secure and prosperous financial future.

Jesi Bondoc is a registered financial planner of RFP Philippines. To learn more about financial planning, attend the 108th RFP program this July 2024. Please email info@rfp.ph or visit rfp.ph for details.