When you land your life’s first job, it is an indeed exciting moment. You are impatient to experience all those real-world feelings, more specifically the feeling of your first salary. You must be already having plans on the things that you would buy with your first salary. Well, this ‘first salary’ is extremely special for the young people as they know that they are making their own money. This is why almost everyone remembers their first job and their first payslip.
But if you’re careless while handling your new-found wealth, you will soon be in trouble. This is why you have to be watchful about how you save money in your first job. We will help you with few tips so that you can follow them and make sure you don’t squander your wealth unnecessarily and end up broke by the middle of the month.
1: Inculcate the habit of saving from the beginning
When you start off with your new job, if you don’t have any pressing financial needs, you can definitely plan to save 50% of your salary and use the remaining 50% for your needs. However, for doing that in a proper manner, you have to know your priorities, your groceries, food items, transportation costs and other bills. When after meeting all these expenses you see that there’s still some money left, you should then think of spending it on your wants. Experts say that emergency savings should comprise of at least 4-6 months worth your salary.
2: Save funds before you spend money
This is yet another straightforward point that you have to remember as someone who has just starting earning money. Make sure you set aside monthly savings before you spend for your wants and needs. You should stick to your financial goal instead of settling down for less. No matter how little is the amount that you earn from your first job, saving is necessary. It is during your early 30s that you should dream of becoming a millionaire during your late future.
3: Maintain a diary and a budget (that’s written!)
Do you have a list of your monthly budget? If answered no, get it now! You should write down your regular expenses as this is the best way in which you can track your funds. Would you ever want to get astonished at the end of the day to think that you’ve got no money left for anything else? Though maintaining a budget may sound tedious, yet it is a MUST!
4: Prioritize your needs over wants
It is vital to classify your needs and wants and also know the difference between the two. Before you splurge in eating in a new restaurant or buying a new dress, ask yourself whether it’s an impulsive buy it not. Can you arrange cash for it and yet be able to meet your other expenses?
So, now that you’re working, make sure you take the steps mentioned above to save money so as to inculcate the habit of saving money while on your first job.