First Job Not Setting A Budget

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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

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