Your first job is always special. After working hard to get a degree or diploma, landing a job is a dream. It might not be your dream job, but it is a stepping stone toward a brighter future. So, what do you do after landing your first job and getting your first salary?
Are you wondering the same thing? There are so many things you can do to safeguard your future. Instead of spending the entire salary from your first job, start saving. Start investing in your future or yourself.
Need a list of things you can do after landing your first job and salary? Try these ideas.
Pay off your student loans
Do you have student loans? Then the first thing to do after you get a job is to start paying it off. Don’t wait for notices to start coming your way. Instead, make a plan for how you will pay it off. For example, you don’t want to spend your entire first salary on repaying student loans.
Instead, you want to make a plan allowing you to start reducing your debt without going broke.
When you were a student getting a degree, you had debt. Not just the student loans but other debt. For instance, you might have credit card bills. You might owe a friend or relative money, and so on. If you have any of these, start paying them off.
Get health insurance
After you get a job, the first thing to do is get health insurance. Many companies provide health insurance, while some don’t. In any case, having two health insurance policies will not hurt. Health issues can arise at any time.
They don’t give prior notice. If you have health insurance, you can get the desired treatment without worrying about bills or money. Research your options and buy the best health insurance with good returns.
Analyze the cash flow
The in-hand amount is always different from your pay grade. Retirement benefits, PPFs, taxes, and all are cut before you get a steady amount in your hand. So you know what you are getting. But do you know how much you are spending?
If you don’t, it is time to analyze your cash flow. See how much you spend on rent, groceries, eating out, vacations, etc. Start doing this from the first month of salary itself. It will show you how much to save, invest, and more.
The recommendation is to save 30% of what you earn.
From this 30%, 10% should be invested. But for this, you should track your expenses, make a budget, and work hard to save.
If you keep adding funds to your bank account, you are not making any profit.
So instead of keeping all your money in the bank, start investing. Look at the various options, learn about them, and start investing. It is for your future. Also, invest in an emergency fund. Invest in shorter-term goals, too, like buying a house or car.
Invest in yourself
When you get a job, you want to do better at it. You want promotion and higher pay. For this, hard work alone isn’t enough.
You also need to improve your skills. According to your profession, find the skills in demand. Then, take a course to learn the skills. It will help you get ahead in your career. Start investing in yourself from your first job and salary, and hone your skills to reach the top.
Buy things you want
Yes, this is your chance to buy things you always dreamed of but couldn’t.
Sure, saving and investing are essential. But you are earning enough to satisfy your needs and wants. So, look at your budget, and see how much you can spare. Don’t go outside the budget, but buy things you want. If you need something expensive, start saving for it now.
Build your network
As soon as you get a job, start building your network. Of course, you can do it before, too. But it is essential once you start a job. Meet new people, get to know your colleagues, create a LinkedIn profile, and more.
Landing a good job after graduation is a dream for all.
Receiving your first salary is a milestone. Cherish these moments and also invest in yourself and your future.