That’s it, you have entered professional life and your first salary has just been transferred to your account? The first instinct is to keep a cool head to avoid doing crazy things. To save and spend your money intelligently, good organization is essential. To do this, discover our advice in this article to ensure good management of your income.
Managing your first salary: 3 things to do
When you start your career, it is not always easy to manage your first salary. There is no specific rule intended for young professionals to help them better control their budget. It is important to know how to organize yourself and always have money aside in case of the unexpected, whether it is your first post-study job or a summer job. In order to build up a security fund, here are the three things to do.
Pay your bills
In the list of monthly expenses to plan for, bills come first. Indeed, it is recommended to take stock of expenses on electricity, water, gas and mobile plans, among others. This will give you an idea of the approximate amount to allocate every month. It is important to pay bills on time, especially at the start of each month, once your money is in your bank account. It is also preferable to pay them by credit card.
On the other hand, to learn how to manage your first salary, it is advisable to do what is necessary to reduce your electricity, water and gas expenses. The first step is to analyze your consumption in order to take the necessary measures. To do this, here are some tips that could be of great help to you:
- Turn off the tap when soaping your hands and use a glass of water to brush your teeth;
- Systematically turn off the lights when you leave a room;
- Use the dishwasher and washing machine only during off-peak hours;
- Unplug all devices on standby, especially before bed or before leaving your home in the morning.
You can also think about changing electricity and gas supplier by comparing their offers beforehand and taking into account indirect taxes.
Invest or save
It is necessary that know how to save to face the unexpected in the best conditions. This will make it easier for you to finance a project that is close to your heart, such as buying the house of your dreams, but after a few years. For example, you can deposit your savings into an account with a high interest rate or into the bank account.
You can also get into trading. Investing in cryptocurrencies, like Bitcoin, is a preferred solution. Are you taking your first steps in this financial system? Register on a trading platform offering features that allow you to invest easily, like BitIQ. In addition, this type of independent, fully digital currency is available 24/7.
Taking out life insurance is also a worthwhile investment. In fact, you are free to set the amount to invest, knowing that no minimum amount is imposed. Please note that this profitable investment allows you to obtain an attractive return thanks in particular to compound interest. In short, the profits are reinvested, which results in an increase in your capital. Therefore, by letting your savings work for at least eight years, you can be sure of having a nice sum of money set aside.
To please yourself
For good manage your finances, it is better to combine pleasure and necessity. Is special clothing required for your first job? You should create a capsule wardrobe, as your first position will undoubtedly add value to your career. If you’re required to come to the office in a suit, consider shopping for one every three months. Don’t forget to find out about sales periods to save money while looking great.
Know the limits not to be exceeded to better manage your first salary, that’s good, but don’t forget to schedule some leisure time. So, even if you are taking your first steps in professional life, consider planning your vacation now to relieve stress. To do this, it is best to define the budget necessary for an unforgettable vacation. It will be easier for you to calculate the amount of money to put aside every month in order to satisfy all your desires during your stay away from the hubbub of everyday life.
