5 Financial Advices

You’ve probably earned some financial nuggets during your summer job or college part-time jobs. You probably know how hard it is to earn every dollar through your lawn-mowing and baby-sitting gigs. But the world take a different turn when you get your first real job after college and the demand for better financial management becomes even more consuming.

Have a Budget
You are now out on your own, a full-fledged independent individual. If you’re not careful with your money, you could end up blowing your paychecks to night outs with colleagues, lunch dates and shopping sprees. As a result, you’ll have to make ends meet while waiting for the next paycheck. A budget will help you manage your income effectively and ensure that you’ll still have money left for emergencies.

Start your Savings Right Away
If you still don’t have one, now is a good time to establish your savings. Your savings will come in handy in times of emergency, so make sure to tuck away a portion of your income regularly. You might also want to ask your employer if this can be automated in the payroll. Furthermore, save a portion of your irregular income – bonuses, commissions etc – into your savings account so it grows quickly.

..Take Advantage of Employee Benefits
As an employee, you have access to different benefits that will help your finances significantly. Take advantage of your medical, dental and different forms of insurances. Contribute to your pension. Ask your boss or HR about what benefits you are entitled with. You never know, you shouldn’t have spent out-of-the-pocket for a medical emergency when your health insurance policy can cover it.

Handle your Credit Card with Care
Having a stable job makes it easy for you to get a credit card. But that doesn’t mean that you should use your credit card indiscriminately. Indeed, a credit card affords you a form of convenience that cash cannot, but mismanaging it will hurt your financially down the road.

Live Within your Means
You might think that you can now splurge on anything you want because you have a steady paycheck to rely on. Doing so can be financially disastrous. Most of your paycheck will go to paying debts. What happens when you get laid off or become disabled? Those paychecks will stop coming. Living within your means helps you to enjoy your life without wrecking havoc to your finances. You will be able to save and stay afloat in case an unexpected event happens.

Having your first job is a very exciting but it’s also full of financial temptations. It will feel like you can buy anything. But be wise with your money, spend reasonably, save generously and you will be alright no matter what happens.