25 July 2008
	FM Campus Recruitment Edition Cash flow management By Robert Quarshie Starting a career can be an expensive exercise, so build a nest egg now to save you from falling into debt

The monthly battle to make ends meet is one of the greatest challenges of student life. But starting out in the "real" working world isn't any simpler. "I battled to decide which medical aid to choose, how much insurance to get and don't even get me started on the ever-confusing tax bracket that I suddenly fell into," says television presenter Bianca Lorenzo-Perez. " I struggled to find a balance between my minimal salary and my numerous expenses." Starting out in the working world isn't cheap. To begin with, you may need to relocate to take up your new position. While some of the bigger, more generous companies may assist you with this task, most don't. Start budgeting for a plane or bus ticket, or petrol costs if you are driving - as well as the costs of moving your belongings across the country. When you reach your destination, you'll need a place to call home - and the money to secure it. Not only will you need to put down a deposit, you will need to pay for the first month's accommodation - but you'll get your first pay cheque only at the end of the month. "It's about cash-flow management," says Macquarie First South economist Gina Schoeman. "The initial outlay of moving city and starting up is quite large and you need savings." You are probably also going to have to upgrade your wardrobe - ripped jeans and trainers aren't going to cut it in a financial organisation. Put some money aside for this. You don't have to impress people by arriving for your first day of work wearing an Armani or Gucci suit, but you do need to look presentable. Transport will eat into your monthly budget. But if you want to get yourself a set of wheels, you need to be in a position to put a down a deposit. "If you can put a deposit down, the amount of interest you'll pay over the term of your loan will decrease substantially," says Schoeman. And don't get suckered into buying a car beyond your means. Your first car should merely be something with good resale value - after all, you may want to upgrade as your salary increases. It is equally important to manage credit wisely. With little or no experience in using credit, many go on spending sprees. Others use it as an expensive way to bail themselves out of their financial woes. A bad credit rating will make getting a loan to start a business or buy a house or car next to impossible. "Starting off anywhere is hard, but you have to deal with the tough times," says Lorenzo-Perez. "Just try to be careful with your money and it will sort itself out."