What should I do after finishing my studies?

Completing your higher education is a significant milestone, bringing both excitement and apprehension. It’s the final step before achieving a certain level of independence, but it often raises questions for soon-to-be graduates: what options do I have once university is over? While myLIFE can’t answer this question for you, we can encourage you to consider some important elements as you embark on your professional life.

Entering the job market

Once you’ve graduated, your first instinct might well be to jump straight into the labour market. The journey to the job of your dreams can be stressful, difficult and frustrating in many ways. It’s crucial that you approach it with optimism and the determination to persevere, no matter what.

It’s wise to research strategies that can boost your chances of landing the job you want. Update your CV, target companies that interest you, personalise your cover letter, and apply through as many different channels as possible (platforms, job fairs, social networks). Your first job choice is important, so take time to research and select potential employers. Not all work environments and philosophies will suit you.

Landed your first interview? There are ways to prepare that will maximise your chances of standing out and acing this stage. Before your interview, take time to learn about the type of contract on offer (permanent, fixed-term, temporary, etc.) and the benefits offered by your future employer. As the recruitment process progresses, you’ll be in a better position to negotiate your contract (salary, hours or fringe benefits).

Once you’ve signed your contract and your employment is official, you’re halfway there: you’ve got the job, now you have to make it work.

Once you’ve signed your contract and your employment is official, you’re halfway there: you’ve got the job, now you have to make it work. You only get one chance to make a good first impression, so do whatever you can to start off on the right foot with your supervisors and new colleagues. By following a few tips (observe, ask questions, communicate, get involved, etc.), you’ll seamlessly integrate into the company. Following a few tips (observe, ask questions, communicate, get involved, etc.) will help you make a smooth transition into the company.

All work deserves payment! Your first payslip, rewarding the work you’ve done, will be a source of pride. But if you don’t do your homework beforehand, the amount that’s actually paid into your account may come as a shock. Take time to examine your first payslip to understand the difference between gross salary (mentioned during your interview) and net salary (gross salary minus social security contributions, taxes, and long-term care insurance). If you hadn’t been aware of this difference, you’ll probably have to adjust your budget considerably.

Mastering your budget

As you begin to earn a steady income – likely far more than you’ve ever had before – it’s crucial to keep a level head. The key to financial stability lies in effective budget management. Balancing various expenses such as bills, groceries, housing, and transport can be challenging, but there are strategies to help you stay on track. One popular approach is the 50/30/20 rule. With this method, 50% of your income goes towards essential needs and obligations: rent, bills, charges, insurance, groceries, health expenses and transport. Then 30% is for discretionary spending: dining out, cultural activities, shopping and holidays. The remaining 20% is for savings and investments so that you can build your financial future.

Finding the right balance between living well today and preparing for tomorrow is crucial.

To implement this method and eventually achieve financial freedom, you first need to calculate your income, define and classify your expenses and adjust your budget. However you decide to go about it, finding the right balance between living well today and preparing for tomorrow is crucial.

Balancing savings and investment

Your income will vary depending on your job and professional field. Regardless of your means, how you manage your assets will impact your future. To prepare for potential difficulties and grow your capital, it’s a good idea to build your investment pyramid. This concept will help you to better understand the difference between precautionary savings, longer-term savings and investment.

Your savings account forms the base of the pyramid, and you should top it up regularly to create a safety cushion for unexpected expenses and major outlays. There are a number of small, simple steps you can take to save money at home or on your car, for example.

Next, consider long-term savings (life insurance or retirement provision) to protect yourself in case of loss of income. Finally, the peak of the pyramid represents the rest of your assets. This should be dedicated to investments that will finance your major life goals, such as buying a home, financing your children’s education, etc.

Moving into your first flat is a defining step in the transition to adult life.

Finding your first home

Moving into your first flat is a defining step in the transition to adult life. That’s why finding accommodation often becomes THE priority in your quest for independence. In Luxembourg, real estate prices make buying a home challenging for most young people. Difficult, but by no means impossible. Especially for those who prepare properly.

Many recent graduates opt for renting instead. To find a rental property, it’s important to plan ahead by searching online platforms, contacting agencies, and carefully preparing your application. Don’t be too picky, and don’t expect to find the perfect property – it doesn’t exist. Consider expanding your search to include areas surrounding major cities. Once you’ve found your ideal place, remember you’ll need to pay a security deposit. There are a number of options available to do this, including: cash or bank transfer guarantees, bank guarantees, or rental guarantee insurance. Under certain conditions, you may be eligible for a guarantee provided by the government. Finally, before you move in, you’ll need to sign a lease agreement with your landlord to define everyone’s obligations, and carry out a property inspection to protect your interests in the event of a dispute. Don’t neglect this step, as it could be costly when you move out.

If you’d rather not live alone and prefer to meet other young professionals, you have alternatives: flat-sharing or co-living. Depending on what’s important to you, you can determine which solution suits you best. With flat-sharing, you have your own room and share common areas, jointly manage daily tasks, and benefit from reduced rent. If you choose co-living, the price is higher, but you get private spaces (bedroom, bathroom, and sometimes a kitchenette) and access to common areas furnished by the managers, as well as premium services (concierge, gym, etc.) in many cases.

Exploring new horizons

Not ready to fully enter the workforce? Do you feel the urge to travel or develop new skills? If possible, consider taking a gap year so you can have time to think about your next steps. Use this chance to travel, pursue further training or volunteer. Bear in mind that a project like this requires substantial financial resources. So keep an eye on your budget. And if you decide to set out for foreign lands, don’t forget to take out travel insurance.