3 Smart Ways to Manage Your Money After Getting a Full Time Job

In a previous blog post, I discussed my shift in job hunting strategy to align with my interests. I’m thrilled to announce that I have recently accepted a full-time job offer! I’m filled with immense gratitude and anticipation for the exciting journey ahead.

Ever since securing this job, one aspect that has been on my mind consistently is finances. Specifically, I’ve been contemplating the best course of action now that I have a stable and regular income. In the past, I have written about cultivating financial habits as a beginner. After careful consideration of my goals, extensive research, and meaningful conversations with trusted friends and family, I have outlined the following financial approaches that I intend to implement during my first year of employment.

1. Create a budget

Do you ever find yourself in this situation? You receive an exciting notification from your bank on payday, and immediately your mind starts racing with all the amazing activities and experiences you can indulge in that month. You begin the month with good intentions, but as the weeks go by, you’re left with a dishearteningly low balance in your account, wondering where all your money went.

I used to experience this frequently until I discovered the power of budgeting. Creating a monthly budget is an excellent way to bring order to your spending habits. With a well-defined budget, you can prevent unnecessary overspending and regain control over your finances. This blogger offers valuable insights and guidance on the “what” and “how” of creating a budget. If you’re interested, I invite you to take a look and develop a budgeting strategy that suits your needs.

2. Establish a strong saving practice

I’ve been strongly encouraged to save money since my teenage years. Even though I mostly worked part-time jobs that paid minimum wage, I made it a habit to set aside a small percentage of my income. I am grateful for cultivating this habit because it is undeniably one of the wisest financial choices a person can make.

Each month, I will allocate a portion of my paycheck into three distinct categories: an emergency fund, long-term savings, and a travel fund. The purpose of an emergency fund, as the name suggests, is to provide financial support during unforeseen circumstances such as job loss, significant car or home repairs, or unexpected medical expenses. Long-term savings, preferably accruing interest over time, are reserved for future use, several years down the line. As an avid traveler, I also contribute to a travel fund that allows me to explore the world more frequently. When necessary, I tap into this fund to cover travel-related expenses like airfare and accommodation.

If you haven’t already, I highly recommend opening a savings account and regularly contributing to it. You may not have the exact three categories like I do; perhaps you have one, two, or even five. The key is to have savings that remain untouched until absolutely necessary.

3. Live simply

Despite having a full-time job, I’ve made the decision to maintain a lifestyle similar to when I worked a minimum wage position for the next year. While I allow myself occasional indulgences and enjoy nicer things, I strive to avoid unnecessary expenses and refrain from spending more than necessary. Instead, I intend to allocate the extra income into my three savings buckets.

Many people in their twenties often find themselves caught in a common pitfall of living beyond their means. This tendency is often fueled by societal pressures and the desire for validation from others. However, pursuing an unattainable lifestyle merely results in a never-ending pursuit of approval that ultimately leaves us feeling unsatisfied. By choosing to live within my means, I can align my priorities, stay focused on my savings goals, and make sensible financial decisions. There will come a time when I can enhance my lifestyle and increase my spending capacity, but for now, I choose to exercise patience and practicality in my financial decisions.

I hope this post has provided valuable insights and perhaps even inspired you to assess your own financial goals and behaviors. Embarking on the journey of financial planning can feel daunting, yet the rewards it brings are truly worth the effort.

Take this opportunity to evaluate your financial situation, identify your goals, and create a plan to achieve them. Whether it’s setting up a budget, starting a savings account, or seeking professional advice, taking proactive steps towards financial well-being can have a profound impact on your future.