Getting your first paycheck is the ultimate happiness. You might be partying with your friends or family with it or buying that game or clothing you have wanted for so long.
Have you been spending all your money after receiving your paychecks? Is that what you planned for? Certainly, no.
This first job is just the first ladder to your future plans. You might want to study further, start a new business, or another future goals. So, it is better to stop spending unnecessarily and start saving. This article will help you with the tips to save money with your first job paychecks.
Start saving for retirement
It might sound odd and you might not consider this relevant at this age. But, you should not wait until 30 to think about retirement. With the help of compounding interest, a small amount can begin to add up to a good sum of money at retirement. Also, with this, you can plan your retirement early. You can ask your employer about the retirement plans they offer.
Create a budget plan
After getting your paycheck in your hands, make a written list of what are your necessary expenses and what expenses you can avoid. Make sure you stick to your budget. If you don’t keep track of your expenses, it will be much harder to save money.
Consider your income after deducting your taxes and student loan. Then count an estimate of your utility and grocery bill, rent, and other necessary bills.
First save and then spend
Make it a habit to keep aside 30% of your paycheck immediately after receiving it. Set up an automatic reduction in your other saving account from your salary account so that you don’t miss it. You can also consider this as an emergency fund. Make sure you don’t touch this money until something urgent arises.
Prioritize your needs and wants
Before spending your money on anything, simply ask yourself if it necessary to have? Can I do without this? Buy only those things which are important to have. For instance, you cannot do without a home so rent becomes a necessary expense but you can surely bring cooked lunch to the office and avoid buying meals from outside.
Moreover, try to buy clothes and other items on sale to get everything for less. You can also buy your grocery, culinary or other daily needed things online and use discount codes and deals from CouponoBox to save on a daily basis.
Don’t buy with credit cards
A credit card is not free. Spending only from what you have is a good habit. If you are bad at managing your finances, strictly avoid using credit cards. Forget about saving, this can drag you into debt. Use cash or your debit card to pay for everything.
You don’t need to be frugal to save money. You can enjoy your life and still plan your future. It just needs to be done in the right way. Follow the above steps and you will notice a change in your lifestyle as well as in your bank account.
|Laura Himmer is a writer at Couponobox. Laura enjoys writing about fashion, lifestyle, and inspirational writing. She is a fitness freak and loves yoga.|