5 Financial Habits To Start With Your First Job
July 09, 2020
You have finally got your first ever job. When you receive your first pay cheque, you also need to develop financial habits to keep your finances in order. Read further to know career planning, personal finance tips and money management tips.
Your first salary marks the starting phase of you being financially independent. But what would you do with all the money you receive at the end of every month? Some people spend the entire income on expenses and fun activities, while there are others who save as much as they can. If you belong to the former category, then it's time you inculcate a habit of being financially responsible. The early you follow the habit; you won't experience any undue financial burden. Whether you're earning big or small, it is vital to manage money well and start saving to build wealth.
Top 5 Financial Habits You Should Start With Your First Job:
- Identify Your Goals: Set your goals clear. Each year make a habit of defining goals to ensure proper money management. Take some time out to note down those targets and what steps you will take in terms of personal finance to achieve them.
- Try Budgeting Every Expense: A monthly budget expels the desire to spend money on non-essential items. For each month, you should set aside money that will cover your upfront expenses, and you can use the balance income to save or invest. To make the budgeting calculation convenient, you can use an online expense calculator to know where you are spending your money most and how you can cut back on it.
- Open a Savings Account: It's never too early to start saving. How about implementing this habit with your first pay cheque? You should open a Savings Account as soon as you start your career. Choose a bank that fits your lifestyle and needs.
- Start Building A Credit History: As you start working, you may not have a credit history. In such cases, you can avail of a Credit Card from a reputed bank like ICICI Bank. A Credit Card can be a great option if you use the credit responsibly. Precisely, you should avoid spending more than your ability to repay the Credit Card debt, as it will ultimately hamper your credit history.
- Applying for A Loan: In case you're thinking of buying a car or a high-end gadget, you don't need to borrow credit from your family and friends. It's quick and easy with ICICI Bank's PayLater, Consumer Finance or Personal Loan options. With your first job, you may experience a low cash balance when you want to make any purchases. In such a situation, the Bank offers PayLater option with zero interest digital credit or you can opt for Consumer Finance to pay for the product in easy Equated Monthly Instalments (EMIs).
Financial matters should be a priority from the time you start working. If you're unable to manage the money matters, you can seek the help of a financial planner or advisor. Happy financial planning!
Terms and Conditions apply.
The contents of this document are meant merely for information purposes. The information contained herein is subject to updation, completion, revision, verification and amendment and the same may change materially. The information provided herein is not intended for distribution to, or use by, any person in any jurisdiction where such distribution or use would (by reason of that person‘s nationality, residence or otherwise) be contrary to law or regulation or would subject lClCl Bank or its affiliates to any licensing or registration requirements. This document is not an offer, invitation or solicitation of any kind to buy or sell any security and is not intended to create any rights or obligations. Nothing in this document is intended to constitute legal, tax, securities or investment advice, or opinion regarding the appropriateness of any investment, or a solicitation for any product or service. Please obtain professional legal, tax and other investment advice before making any investment. Any investment decisions that may be made by you shall be at your sole discretion, independent analysis and at your own evaluation of the risks involved. The use of any information set out in this document is entirely at the recipient's own risk. The information set out in this document has been prepared by ICICI Bank based upon projections which have been determined in good faith by lClCl Bank and from sources deemed reliable. There can be no assurance that such projections will prove to be accurate. lClCl Bank does not accept any responsibility for any errors whether caused by negligence or otherwise or for any loss or damage incurred by anyone in reliance on anything set out in this document. The information set out in this document has been prepared by ICICI Bank based upon projections which have been determined in good faith and sources considered reliable by lClCl Bank. In preparing this document we have relied upon and assumed, without independent verification, the accuracy and completeness of all information available from public sources or which was provided to us or which was otherwise reviewed by us. Past performance cannot be a guide to future performance. 'lClCl ' and the 'I-man' logo are the trademarks and property of lCICl Bank. Misuse of any intellectual property, or any other content displayed herein is strictly prohibited.