So, you’ve recently graduated and landed your first real job… and soon enough, you will be receiving your first paycheck. Congratulations! How exciting is it to be successfully starting a career that you’ve been studying toward for so long? However, before you get ahead of yourself and spend your hard-earned cash on the latest winter fashion or on taking your sweetie out for a five-course meal, here’s what you should do before that first paycheck lands on your desk.
We hear this word all too often, but few of us know how to actually go about it. A great place to start is with the 50/30/20 budget rule. Essentially, this means setting aside half of your paycheck for your living essentials (like rent and groceries), 30% for luxuries (like going out or travel) and 20% for your savings or paying off student-related debt. If money is tight, don’t try to skimp on contributing to your savings or paying off your debt. It is always wise to tone down the luxuries instead!
Educate Yourself about Investments
There are so many different types of investment opportunities out there, many of which can help you to grow your little nest egg much faster than you ever thought possible. Consider saving up to see a financial advisor for advice in this regard.
Understand Your Credit Score
If you’re good with money (in other words, you can control your spending) it may be a good time to start working on your credit score. The best way in which to do this is to apply for a credit card and actually use it. Just make sure to pay it off on time and to avoid going over your limit. You might also want to think about opening up a few store accounts. Once again though, it is essential that you pay back any money that you owe quickly and in full, otherwise, you may risk accumulating a negative credit score which could make it difficult for you to apply for a home loan or vehicle finance in the future.
It’s all about taking charge of your money and making it work for you. Here’s to your first paycheck and many, many more to come!