5 Financial Habits to Start With Your First Job

-

The habits that you start out doing are the ones that will follow you throughout your life. When you are starting your first job after college, you are in a great position to make some choices that can help you to be successful financially. A survival guide can help you stay on track when looking for your job.
Landing a good job is only part of being able to build wealth and being successful. It is just as important to manage your money well and start saving in order to make it work for you. Even if you are not making a lot of money, these habits can set you down the path to building wealth and being successful.

01
Save for Retirement 

 Fingers of a man with a currency of Euro, paying a plant that grows with coins of the euro-zoneThe first thing you should do is save for retirement. If your company offers a matching contribution, then contribute up to that percentage in order to take full advantage of the match. If you are out of debt, you can work up to saving between ten and fifteen percent of your income for retirement. The earlier you start, the lower the percentage you need to contribute because your money will begin earning interest and increasing your retirement savings. You will eventually reach a point where the interest is greater than your annual contributions.

02
Budget

Hand and pie chartAlthough this may seem like an obvious step, it is one thing that many people struggle. Creating the habit of planning your spending and sticking to your budget will help you do more with the money that you earn. You can make a large amount of money and still end up in debt or with little to show for it or you may not make as much as you thought you would. Learning to budget is the key to building your wealth and taking control of your finances. If you do not know how to budget, find budgeting software and take classes about budgeting. The YNAB company offers a variety of free training classes you can take to help you get control of your budget. Your church or bank may also offer budgeting classes.  

03
Set Goals and Create a Plan 

 Businessman at workstation in startup officeIt helps to have a clear cut plan when it comes to building wealth and as you go throughout your life. Take the time to set financial goals each year. A part of this process should be learning about the next step so that you are ready. Read books about finances, subscribe to magazines, and attend classes so that when it is time to take the next step in your plan you are ready.

04
Avoid Debt  

 Credit cards in leather wallet on wooden backgroundOnce you land your first job, stop using your credit cards. Limit the amount of debt that you take on from here on out. Other than buying a car or buying a home, you should try to pay cash for everything else that you need. If you currently have credit card debt, personal loans, or student loans work out a plan that will help you to pay off your debt more quickly. Your budget will help you to reach these goals. Take a minute to add up how much you owe in debt payments each month and then determine what you could do with the money if you were not in debt.

05
Give Back 

 Volunteer packing tin cans into cardboard box

 Whether it is money or time, make it a priority to find a way to give back to your community or the world in general. There are so many people struggling throughout the world, and you have the opportunity to make a difference. If you establish the habit when you are young, it will be easier to continue to help as you get older and busier. The volunteer opportunities may be simple like volunteering for a day or two each year at your local food pantry or more extensive like doing volunteer tourism. No matter what you choose, be sure to research to make sure that the money or time that you donate is doing the good you want it to.

SOURCE:www.thebalancecareers.com

Comments

Post a Comment

Popular posts from this blog

Top 7 Ways To Hold On To Your Dreams

-
By:   Deborah Brown Have you given up on your dreams? Would you like to get them back? Many of us give up on our dreams. Often our dreams slip away without our even realizing it. Our dreams are who we are. They give us an incentive to get out of bed everyday. They are the reason we were born, and our destiny to fulfill while we are here. They are within your grasp. And yes, they can come true. It's up to you to decide if they will. What can you do if you've given up on your dreams? Follow these easy steps: Remember you are worth it. You deserve to live your dreams. Recognizing this is the hardest and most necessary step. Most of us think that only other people get to live their dreams. Only other people are lucky enough, not us. We think we don't deserve it but the only thing these thoughts do is keep us from moving forward. Remember that your dreams are important. Once you know how important living your dreams is to your health and mental well being, then yo
Read more »---->

7 Effective Ways to Develop Your Negotiation Skills

-
Image
1. Practise Saying ‘No’ Human beings are programmed to be non-confrontational. From a young age, we’re taught to follow orders or else get punished, and as adults, we’re taught the same thing. Time and again, we’re told to ‘let it go’ and ‘just go with the flow’ so we don’t upset the client or the boss. This lifelong habit of avoiding confrontation and just saying ‘yes’ weakens your negotiation skills. But not to worry; you can still reprogramme your mind by practising saying ‘no’. You can start with something small like going home on time or refusing to work extra hours, especially if you’re already raking in too much overtime. If that seems like a big step for you, then you can start by saying ‘no’ to that annoying colleague who loves sabotaging your healthy eating habits by tempting you with a piece of chocolate cake. These might seem like small steps, but taking the opportunity to say ‘no’ to minor instances will help you say ‘no’ to bigger things – whether it’s
Read more »---->