Updated: May 24, 2021
Landing your first job after school, whether you left after high school or went on to University, is an exciting venture and an opportunity to grasp with both hands.
Not only are you immersing yourself in the world of work for the first time, but you’re also getting money, which is considered a huge perk.
However, despite all the excitement, your first job is also the opportunity to start preparing yourself financially for the rest of your life – but what are the best moves to make? We’ve put together a quick guide for you below!
Even though funding options such as payday loans could be available in a financial emergency, having money set aside to cover big purchases or unexpected outgoings is important.
This may seem like a bit of a given, but the best thing you can do with your first-ever paycheck is use some of it to start up a savings account.
Every month, you can contribute an affordable sum to the account and watch as your balance grows over the months. In no time, you’ll have a healthy amount for when you need it.
Many savings accounts come with an interest percentage too, which essentially means that they will give you money just for having money that helps to build upon your savings – all you have to do is put the money in!
Start Tackling Debts – If You Have Any!
Not everyone will have worked up debt by the time they get their first job, but if you have student loans or consumer debts hanging over your head, start paying them off now.
It can be tempting to blow your first paycheck on the purchase you’ve been dying to make but leaving those debts to get bigger and bigger with interest could prove harmful to your credit score or cause issues down the line.
Start Building Up A Retirement Fund
We know it’s likely that you’re a good 50 years away from retirement, but building up your retirement fund now could ultimately add up to a much more comfortable lifestyle when you finally come around to it.
If your work offers a matched pension scheme you may want to consider taking it. But on the side, you could try and set up an alternate savings account to your emergency one to start putting funds into the “˜retirement pot’ so to speak.
Get To Know Your Taxes
Knowing what you need to pay when it needs to be paid, and when you can expect to see it go out of your bank account or paycheck will save you from any unexpected losses and better budget the money you do have around essential outgoings.
This is particularly important if you’re a freelancer, as you’ll need to pay these yourself in most cases as opposed to your place of work doing the tax calculations for you!
Invest In Yourself!
Finally, once all of the “˜boring’ stuff is aside, you can spend the rest of your paycheck on yourself! You’ve worked hard to get the money you have and so it’s time to start investing back into yourself and your own self-care.
Whether you opt for just treating yourself to a night out with friends, or finally picking up those shoes or that outfit you’ve been dying for, make sure you take out some of your paychecks to do exactly that.
You’ll not only be able to celebrate your new job in style, but you’ll also feel a lot better mentally knowing that all of your work is worth it in the end!
This article is contributed by Connor Christopher.
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