Congratulations, you have just landed your first job. You are probably excited about starting your career but I bet that what excites you more is all that money that you will be getting at the end of the month. Tito Mboweni! Learning to be financially responsible is one of the most important parts of being an adult. It’s okay to ball but let’s be responsible. Here are a few tips on how you can save some of your first pay cheque.
Draw up a budget
By now you probably know how much you are going to be paid and you will be able to work out your expenses. Do the maths, take your income and then minus your expenses from that amount, the money that is left over can be used for savings.
Writing your expenses down on paper can help you focus on where your money will be going.
First things first
Before spending money on the things that you want, make sure that you have spent money on the things that you need. List your priorities from the most to least urgent. Things like electricity, food and transport money to get to work would be more important than a new dress or a night out. This is not to say that you shouldn’t go out or buy yourself something nice, just make sure that the necessities are taken care of before spending on luxuries.
Put a little away for a rainy day
You can start saving from the first pay cheque. After drawing up your budget, you can tell how much extra money you will have left after your expenses. Save at least ten percent of your left over money. You can open a seperate savings account or a savings pocket at your chosen bank - with the tax-free accounts, you can save without fear that you will lose any interest you earn. To open a savings account, you will need your ID and a proof of residence for most banks.
Quick Tip: Create saving goals. Whether it is saving to buy textbooks for school or paying for a gym membership- your goals will help you to focus on and stop you from spending recklessly.
Keep track of your savings on paper. Can you tell us how much you have saved so far?
Tell us about how you spent your first pay cheque in the comments below!