April 2, 2022
How to Save Money at Your First Job
Use these strategies to save during your new career.
Create and prepare a budget
Receiving your first paycheck can feel very rewarding. However, it’s crucial to recognize the importance of budgeting your money. Begin by calculating your salary after taxes and withholding. Next you can create a list of monthly expenses divided into needs and wants. Needs would be costs like rent, gas, and groceries. Wants could include eating out, traveling, clothes, and entertainment. Seeing how much you spend a month will give you a clearer idea of your average spending habits and finances.
Tackle student loans and debt
Having to pay back student debt and loans can feel overwhelming when you have a starting salary. Getting rid of debt is not going to happen overnight. It will take time, hard work, and some financial sacrifice. But it’s doable! Make sure to always make the minimum payment, account for your debt in a monthly budget, and when you have extra cash, put that towards a payment. The quicker you get rid of your loans, the sooner you can spend money on your terms.
Plan for the unknown
Life is full of surprises, from major medical expenses to unexpected home repairs. Many people aren’t prepared for these unpredictable financial blows. It’s important to set aside around one to two months of your paycheck into savings to prepare for additional expenses that you may encounter.
Save for retirement
Although retirement may seem relatively far away, it’s essential to start saving now, rather than later. Depositing money into a retirement account early in your career will only ensure more money in the future thanks to compound interest. Simply setting aside small amounts of your paycheck each month for retirement will greatly benefit you in the long run.
Managing income from your first job can seem challenging. However, applying these four easy tips early on in your career will help you live the life you want even while being on a small budget. Citizens first bank can help you manage your money and set future financial goals. Give us a call or come into one of our branches today!