Starting your first job marks the beginning of your career and life as an adult. It is a big achievement and comes with many opportunities. The feeling of receiving your hard-earned money is the best in the world and cannot be described in words. Once you lock in your position, you must remember that the job market is full of competition and new opportunities. You must keep honing your skills and march forward to achieve your goals. However, that is not the only thing you need to concentrate on, you need to learn how to manage your finances. It is easier to commit major financial mistakes when the prospect of your monthly check is right in front of you. Some of the avoidable financial mistakes that most people make while starting a new job …show more content…
To manage your salary well and start saving, it is necessary to plan a budget and stick to it. It will act as a guidance to spend accordingly else you are likely to spend lavishly on unnecessary things. Setting up a small percentage of your income for saving every month will also help inculcate the habit of saving early on. Making Big Purchases: No matter how well your first job pays, it is not advisable to make big purchases right away such as a new car, laptop, smartphone, etc. These purchases are essentially liabilities that can upset your monthly budget even if you might be able to afford these things at first. These purchases will seem perfectly viable in the beginning of the month but will start pinching your pocket before the next pay check if you indulge mindlessly. Using Credit Cards: Credit cards are ruling the banking and financial sectors these days and creating a buzz. However, this does not mean you also have to switch to credit cards. Despite the many benefits of credit cards, they can be quite dangerous if not used judiciously. Stop falling in the trap of the banks that lurk customers with exciting rewards, offers, mileage, and points just to make you believe that it is th best for you. Credit cards should only be used when absolutely necessary and you can pay off the credit card bill on
Over-Utilisation of Your Credit Card Limit: People often over utilise their credit card limits and this result in a high credit balance in their account. High balances on credit cards are also a cause of low credit scores. It is always better to pay your credit card bills every month. If you are not able to control your spending habits, then it may make sense to go for a card with a lower limit. This way, you will not build up a large debt and easily be able to pay all your dues. Another thing to note, credit card bills have a minimum sum to pay along with the overall outstanding. If you are unable to pay off the total amount you owe, it makes sense keep paying the minimum amount due until then.
2. Do you often pay close to the minimum payment on your credit cards because of lack of available funds?
I. Main Point 2: It is important to pay your credit card balance off every month. If you do
1. Stop using your credit cards. The most frank, no nonsense advice you would ever get
My first job was at a grocery store I was excited of meeting new people, making friends, gaining experience, but most importantly was excited to earn my own money. My pay rate was nine ten and pay day was every Friday. The first day I worked was on a Sunday afternoon in which I worked a heavy eight hour shift from eight in the early morning to four in the calm afternoon. It was a very productive day I did many go-backs, the hourly
Much has been written about the dangers of misusing credit cards, and it is true that many people have run into serious problems because of the careless use of credit. Used properly, though, credit cards can be a source of many benefits, and can provide certain protections and warranties not available when paying by cash, cheque or debit card.
Spend less money? We all know that we should probably spend less, we just don't realize how simple it really is. If you need to spend less money in order to have more money, you need to learn how to make a budget and how to make it work for you. First, keep track of where you spend your money for at least 2 weeks.
You can always consolidate your debt and save some money - never do it. Consolidating credit card debt will also save you a lot of money. If you manage to get into debt, there is a great chance that you have a lot of money on a
In order to keep this up, you'll need to keep the money to the side and pay off the balance when it's due. Don't swipe the card knowing that you don't have the money to cover the expenses. Most people do this and that's why they experience serious credit card debt. 3. Use it for dire emergencies and necessities.
If we don 't have credit cards, we can’t build our credit history. If we don 't have a credit history, we aren 't allowed to buy cars or houses with low monthly payments. Having credit cards is a cycle in life because without one thing, we can 't have the other. When people have credit cards they have to use them. It doesn 't help that banks offer many credit cards to people, ending in high debt. Banks also encourage low monthly payments. If people pay low monthly payments, they will never end up paying their credit card debt off. They will probably end up paying for the objects they bought, two or three times. People aren 't forced to pay high monthly payments in order for it to take longer to pay the card off. If it takes longer for a person to pay a credit card debt, the credit card companies will be making a lot of money. I can definitely say I have experienced this because I am always offered to get a credit card. There are many stores that carry their own credit cards, and offer them for their customers. Offers are tempting and they can add to a future of credit card debt.
When choosing and selecting a credit card it's important to remember that your introductory rate will only last for a specific amount of time before increasing. This change usually takes effect after six months to a year. Many consumers are attracted to theses low-interest rates unaware the issuer will later increase their rates. I think it's also important for credit card holders to know how to avoid paying interest on purchases. Unaware of these charges, consumers can quickly acclimate fees. They will not charge you any interest on purchases if you pay your entire balance by the due date each
In conclusion, the best way to manage your money is to keep a budget and record all your transaction to see where your money is going. Living with a budget isn’t the easiest thing in the world, but it can be a great alternative to worrying about how you are going to pay for your expenses. Budgeting allows you to create a spending plan for your money; it ensures that you will always have money for the things that are important to you. Following a budget will also keep you out of debt. If you don’t balance your budget and spend more than you make, you will have financial problems. Many people don’t realize that they spend more than they earn and slowly sink deeper into debt every year.
In the Article “Should teens have credit cards?” it states “It is better to operate on a ‘pay-as-you-go’ basis than use credit” (1). Spending a credit card is using money that a young adult does not have if they really needed to charge it to a credit card. It is safer to spend the cash that the teenager actually does have that way they do not owe any money to a credit card company. In the article “Should teens have credit cards?” it also states “Spending too much—a mistake easily made—an run up debts that it takes months or years and may even lead to a bad credit rating” (1). A young adult that uses a credit card instead of cash at hand is leading that young adult down a bad road. Using a card to pay for something that a young adult does not have the cash to pay for, leads to
After saving, make retirement a priority and always stick to it as a goal. 2. Always evaluate your retirement needs.
Having money saved away for emergencies is a must! People do not always know exactly what is to happen in their future, but having money set aside for certain purposes can make the process much easier. For example, one day someone could be making $28 an hour and living financially well, to being laid off and not having any other source of income until