We have all been there and done that; your first monthly salary arrives and then you find yourself with a certain amount in your bank account, something that had not happened before.
Therefore, the desire to buy the whims you have always wanted begins, but those whims usually cause a deep dent in our pocket. The truth is that, in many cases, the most important lessons come from poor decisions. And when we talk about personal finances, mastering them is a matter of learning to use them over time.
If you have just started your first job and are thinking about how you can take advantage of it to start saving, It is for that same reason that we have decided to share with you our guide to become the master of your finances despite being in your first job.
1. Save a Portion of Your Salary
The first mistake is to think about saving “what is leftover” at the end of the fortnight and the reality is that many times there is no excess, quite the opposite. For this reason, most users on Collected.Reviews opined that it is essential that when distributing household income, a fixed amount is obligatorily allocated to savings, as is done with the payment of services. For instance, you can transfer 10% of your income to your “future account”, namely an extra account for your financial investments or even transfer at least 20% of all additional income such as a Christmas bonus or a bonus to your future account.
2. Define Your Goals
Although it is normal at first, wasting your salary every fortnight can turn into a bad cycle if you get used to it. Try to start on the right foot; define and write down your goals as you start your new career path or reach out to a financial consulting company to assist with planning your financial goals. If you think and have a clear plan of action and a specific amount, it will be easier for you to take care of your money instead of spending it on temporary things that you do not need. Visualizing your goals will help you control your finances and use your money wisely.
3. Avoid Impulse Shopping
Although sometimes it is difficult not to get carried away by the desire to buy something, before doing so, give yourself some time to decide if you need it or if it is just a whim. If you’ve already bought it and stopped using it, sell it. The ideal scenario is to have a “wish list” with the things that we need or want, and have the objective of buying them over time. This way we will save money and can compare similar products from different brands and see which one is more worth it, taking into account the value for money.
4. Control Your Expenses
This last is very important because we do not usually look at the expenses we make that involve a small outlay. We think that since they are small amounts, nothing happens. Buying a coffee for breakfast or a snack to consume in the afternoon or buying a blouse that you saw in a boutique, but you will not wear until you have a social commitment can represent small expenses that for many are not taken into account on a day-to-day basis, but if they are not controlled it can affect your finance. These are the so-called ‘ant expenses’ that consist of small amounts of money that are consumed unnecessarily and that make a hole in your budget.
Lack of information they say is a fertile ground for the generation of myths, and we believe these tips will help you save with your first job salary and use your money for more important things.