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Today's post is written by Anisha Halek, a Financial Advisor dedicated to helping professional women achieve financial success.Congratulations on achieving your first full-time position! Regardless of your title or the organization that you've been hired at, having your potential validated by a company is certainly satisfying and worth celebrating. But, before you blow your first paycheck on a festive night out, keep in mind that this is also the beginning of a new journey; it's time to implement some money saving strategies to really reap the rewards of your employment.
Step 1: Create a Savings Account
When you've only recently landed your first full-time job, it's tempting to live week to week, purchasing everything you desire as soon as your balance allows for it. One way to combat this is to create a separate account specifically for saving money. Try to funnel a predetermined percentage of your salary into this account after each paycheck and promise yourself that you'll only use these funds in an emergency. Try to set this up automatically if possible.
Step 2: Practice Discipline and Reward Yourself
Of course, some promises are easily broken, especially when made to yourself with no third party to hold you accountable! A few slip ups are to be expected, but - eventually - you should start practicing discipline and restraint when it comes to spending your earnings. One method of motivating yourself to do this is to set rewards for yourself at particular milestones. For example, you could go out to a fancy restaurant once you've accumulated $5,000 in your savings account or go on a weekend getaway when you reach $10,000, and so on... just as long as the reward doesn't make a severe dent in your savings!
Step 3: Set Goals
Financial milestones are nice, but tangible results are better. Set goals for your money that relate to your current and desired lifestyle. These could include a home entertainment system, a car, or even a house (whether to live in or as an investment property). Of course, you'd be a bit ambitious to save to purchase a property outright; what you'd actually be saving for is your first home loan, such as a BOQ Home Loan. Goals like this will make it easier to stay on track with your savings, as well as help you think twice before spending money on unneeded items. Goals with sentimental value could prove even more effective; if you're saving for enough money to start a family, you're much more likely to steer away from frivolous spending.
Step 4: Invest as Soon as You Can
Even if the house mentioned above is for your own use, there are other ways you can invest your savings apart from real estate. Consider channelling a portion of your savings into stocks, bonds, or a mutual fund. Doing so can help bring in additional funds for you while also ensuring that at least some of your hard-earned money is safe should an uncontrollable shopping spree occur.
Have you recently landed your first full-time job? Have you come across any advice that has helped you save successfully and could be useful to other people in a similar situation? If so, please don't hesitate to share your tips in the comments below.
