The advent of a chapter brings new changes. If you have just finished college and started your first formal job, you will need to adjust to your environment. New clothes to suit the office will replace your casual wear, and so will your life in general. Do not be surprised if you lose most of your friends to the new busy schedule.
As grim as the thought of losing some of your friends may be, there are perks to employment. You now have a consistent stream of income and a paycheck. You can even move out of home!
Before you spend that first paycheck, you may want to read these pointers for some insight.
- Plan Your Finances
Seeing that you are (probably) only getting your hands on your own money for the first time, you may be tempted to blow it all at once. How you manage your first income may determine how secure your future will be. The first thing you may want to agree with yourself is to live within your means. If you cannot pay it off with the money in your account, then do not take it on credit.
- Build Credit Wisely
A credit card is not all that bad if you use it wisely and pay all your debts when they become due. As you grow in your career, you may need to take a mortgage or to take a car loan. Since you will need a credit report, it is wise to start building a stellar reputation with the banks as soon as you get a stable job.
- Save And Invest
There is more to life than computers and formal. You should afford a holiday occasionally to reward yourself for the work you have put in all quarter long. You could open a separate bank account and put aside some cash every month to pay for a holiday.
Additionally, you should allocate some money to wealth creation. Most employers have a 401k in place so that you can get started with your investment agenda as soon as you start working. If none is in place, consult a financial expert to help you set it up and to guide you. Set a goal with a timeline and work towards achieving it.
- Start Planning For Retirement
It is never too late to get started on retirement. In fact, experts advise that you start putting money aside as soon as you get your first job (precisely in your mid-20s). Essentially, the sooner you start, the more time your money will have to grow, and so the more you will have for retirement. You can identify an IRA account that suits you and then start directing some of your income there.
Secure your Future
It is never too soon to be conscious of your spending. When you start planning your finances as soon as you start working, you will be setting yourself up for a future of financial independence.