If you are starting your entry level position straight from undergrad, then you will have an increase in your monthly income. Even if you are not coming from college, you’re new job will give you the money that you need to maintain a stable lifestyle, in most cases. There are a few key tips to make sure that you’re getting the most out of your money
1.) Savings Account: Even if you have a checking account already set up, set up a savings account too. Now you may be thinking, whats the purpose of having money that you can’t directly access. That’s the Idea! If you can’t spend it as fast as you can the money in your checking account then there’s a higher chance that it will last longer than a day. It’s important to pay yourself first. After you get your check, pay your bills that are due within that pay period and then put an decent amount into your savings account. This way you will be saving money for a rainy day, emergency, new house, or whatever.
2.) Employee Contributions: If you’re employer has a matching contribution program for their retirement funds, please take advantage. I know many entry level people think, “I’m young, why do I need to worry about my retirement fund?” This is very wrong! This is like someone walking up to you and saying “If you show me you have 10 dollars in you’re wallet, I’ll give you 8 more,” and you saying “No, Thats fine, I don’t want it.” This is not smart, why would you even think about turning down free money? Even if you cannot contribute the maximum amount, any decent amount will payoff in the long run.
3.) Budget: Everyone needs a budget especially when you start having a consistent income. For some people it is hard to say, I only have $300 and I can only spend it on certain things. Having a budget in your head does not work. Write it down so you can constantly look at it and not have any slip ups. When you have an extra $100 in you pocket and you are stuck between buying a new pair of shoes or putting it into your savings account, knowing that you have a monthly goal helps.
These are just a few tips that can help you save your money and make important financial decisions. The worst feeling is when you just got paid on Friday and by Monday the money is gone. No one wants to have a job and still be broke because they are living outside of their means, this is where these tips will come in handy the most.