Saving Tips On Your First Job
A first job is a benchmark for every single individual in his or her life. Feelings like accomplishment and pride, is what one experiences. Along with these feelings, also comes the paycheck. This brings in the power to spend. Most people try buying their favorite gadget or their favorite apparel of an expensive brand with their first salary. But very often, they don’t keep a track of their expenditure, and it vanishes a little too quickly!
So how does one manage to save money from a paycheck, which they have received for the first time in their life?
An important aspect, which one needs to understand, is that when they start their first job, they may not start at a very high designation. Their position maybe that of a trainee, or an intern. Their salaries are not too high, and thus, one may need to cut back on a lot of expenses. The stress is even more if you have just passed out of college and have to clear your student loans too.
Most people are fresh graduates and have never experienced a professional set up. They do not know the norms of the industry or the work culture. In the process to fit in, one may shop for certain kind of clothing like formal outfits, which may cost a lot. In spite of that, one can save money in the following ways:
Divide and Save
One needs to split the salary into several different parts, so as to inculcate the habit of saving. This division needs to be done in the specific way. Firstly, separate the money you require for shopping from the one you plan to save. The one that needs to be saved should be added to a bank. For the section, which needs to be splurged, spend it wisely and prudently.
Invest in smaller markets
Make investments in smaller markets, like stocks of brands which are rather safe and do not fluctuate too much. Another way of saving money off your first job is by starting a recurring deposit at a local bank. These deposits can be started at a monthly deduction, of any amount a person wishes to invest.
Another element, which needs to be taken care of on a first job, is to avoid unnecessary and lavish expenses, since salaries may not be very high. These include elements like avoiding too many outings, and opting for public transport etc. These savings may seem minor in the start, but in the long run, they provide great financial support.
Control Gen Y needs
Most fresh recruits belong to Gen Y i.e. the age group of 20 years to 35 years. This age group is the one who shops the most. Advertising to a great extent, influences them. These professionals love to indulge in purchasing things from big brands, and this boom of brands affects their pockets largely. These spending habits need to be controlled greatly, and Gen Y needs to spend their incomes more prudently.
A first job can bring in a lot of responsibility, and a certain pressure to build a bright image and impress others. But saving a certain portion of the income can also be done alongside, if planned well. After all, sooner or later one realizes the effort it takes to earn that paycheck at the end of every month!
James Hopes is a financial adviser and a stock trader mostly involved in commodity trading. His website http://HowToTradeCommodities.co.uk provides completed information on how to trade commodities for higher returns.