Financial Planning for your First PayCheque
For most guys who have got their first paycheque, they believe that you must have a lot of CASH to invest. Therefore, most of these guys would prefer to reward themselves with few good meals, buy some new gadgets, or put down the deposit for gym classes.. Probably some of them would consider saving a little..
Here’s some Money tips for you if you have recently got your 1st paycheque,
1) Budget your monthly living expenses according to your lifestyle needs. Live within your means & don’t brag around as if you have just won lottery!
2) Put aside a little for money for emergency cash or ‘rainy days’. I’ll recommend around 3 months.. If you are one who have problem getting job, put aside 6 months of your expenses.
3) Buy Insurance while premiums are low for your age band.
4) Leaving your savings in bank alone ain’t enough. Inflation is expected to average at around 5.5% and your bank ain’t a generous one.. Start a regular savings plan via investing.. For a fresh graduate who is in his/her 20s, you should be able to go through cycles of bull & bear runs without much problem.. Set aside a certain percentage of your salary for a long-term plan and then watch the power of compounding takes place.. Albert Einstein referred the Power of Compounding as the 8th wonder of the world!