6 Things You Must Do After You Get Your First Job

 

Getting your first job is a transition to one’s life. But if you do not take careful steps to manage your cash flow it may lead you to a miserable financial situation full of debts and no savings. Take your decision carefully and remember the following points.

Every year a lot of students are graduating from universities and colleges. Though the economy of Bangladesh is stronger than ever until the job sector is quite competitive. A recent statistics of the British Council showed that around 40% of the graduate are unemployed every year. So, congratulations to you that you landed on your first job!!!

Getting the first job after graduation is very exciting, challenging and even stressful. but, the biggest challenge after getting the job is the management of money and personal finance. Many of us fail to lead a peaceful life because of poor money management and lack of knowledge about personal finance.

The following 6 things will not only teach you to manage your money properly but also lead you to financial success:-
  • Understand Your Salary
After getting the first salary, it gives immense pleasure but the numbers in the bank account vanish within the blink of an eye. Understanding your salary can tell you about how to manage money. Generally, your appointment letter contains your gross salary. But you only get the net salary in your bank account after all the deductions.
  • Create a Budget
Your every decision impacts your budget. “The temptation to spend money affects most people, but can be especially challenging for people who have a sudden increase in income or wealth,” said financial planner Tim Hewitt.
You can use the thumb rule of 50-20-30 for your budget consideration. Allocate 50 percent of your income to needs, 20 percent to savings and 30 percent to pay your debts. But in the case of our country, a fresh graduate has no debts. So, you can use the 50-50 rule. You can also use apps or excel sheets to track your budget.
  • Automate Your Emergency Savings Plan
The best way to building savings habits is to create an automatic savings plan. It’s better to save your money before you start spending. Try to choose easily accessible accounts.
This savings plan can be your emergency fund. You can take help from this account rather borrow from someone. Try to save at least 5 times of your gross salary as soon as possible.
  • Get an Insurance
Insurance is boring until you take a trip to the hospital. We have a negative mentality toward insurance. Remember the future is always uncertain so be well prepared to face it. MetLife or Guardian life can be an option.
  • Set your financial goals
Do you want to have a house? Have a wedding ? Have a child ? or want to take a trip to Bali? Setting aside some money for each of your goal for the next few years will make it less intimidating when the time comes to act.
  • Begin Savings for Retirement
If you are like most young people starting out their first job, the thought of retirement seems like an eternity away. while it may be true that you have 40 or more years to retire, don’t wait to begin saving. Check if your employer has any retirement plan otherwise do this at your own.

Even you are young, healthy, single and without any dependents, the mentioned points will lead you to enjoy financial freedom and live a life. Hope you a successful career…

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