I’VE GOT MY FIRST JOB AND NEED HELP SAVING
I am 23 years old and have just got my first job. How do I handle my finances in order to save from my very first salary?
It is indeed a wonderful idea when you start gearing for long-term financial planning at an early stage.
Handling money is not just a challenge but an art that needs to be learnt to have a smooth and settled lifestyle. The reason I say sooner is because we all make mistakes. If we learn from our mistakes early in life and never repeat them, we could save ourselves from a lot of mistakes that might cost us dear in later life.
The first salary is something we always cherish and try to use it significantly. However, keeping a certain percentage to initiate a brighter future will be memorable. So start planning from today, give yourself a direction, put a timeline for objectives and draw the financial plan to use the money wisely.
Initially, it is not necessary to fix a percentage every month towards saving, but at least try to put a certain portion of salary aside. This practice will inculcate the habit of saving in you, but remember, to achieve longterm goals, you need to have discipline and focus. Adhering to the financial plan is essential. Plan, save and invest to build a brighter future.
Plan to keep aside a sum for a worse-case scenario. Start building your corpus to handle emergency situations first. Consider investing in some fixed deposit schemes or short-term interest return schemes.
Look for low premium insurance policies. This saving habit will keep you on your saving and investment plan. It’s also important to reward yourself after achieving a certain milestone in your financial planning, as it helps to keep the momentum to achieve bigger objectives.
Monitor purchasing habits spend with what you have and depend less on plastic money. This will keep you away from high-interest debt. Plan your shopping and adhere to it. This will regulate your spending habit.
You would be approaching towards the bigger accountabilities in life such as weddings, home purchase, parent’s responsibility. Build up the savings, evade high interest debt, and understand the importance of insurance and investment, as this all will strengthen the financial health, and you can enjoy life more confidently with greater peace of mind.