My first salary made me financially independent. How to Manage Your First Salary and made you Financial Independence.
Financial Independence
I never termed myself as the black sheep of the family but after four years of unemployment. The thought hit me hard. I felt a burden to my parents, who worked hard to educate me. I was an excellent, bright student and studied in the best University and studied engineering courses. Nothing was a miss; I felt nature was against me. I deserved a proper job and decent life. All my friends and schoolmates were in good-paying positions. They all talked about their first salary, the feeling and the independence. I was so blinded by engineering jobs that I missed all casual jobs coming forth.
The thoughts we too exhausting, and I decided to take a walk, and in a few minutes, I was at the local market. It was busy, noisy and all kinds of trade going on. It wasn’t exciting, but I needed destruction to stop my thinking. However, there was one distracting voice that kept calling “cashew nuts fresh and affordable.” I almost dropped dead on seeing who’s calling out for cashew nuts. A long time school colleague finished our engineering course four years ago. He was thrilled to see me, he was looking perfect, and I was astonished. Why sell at the market while you’ve got a degree. My friend was not just a trader but the owner of the big cashew nut processing company. This challenged me; I felt stupid for overlooking all the businesses and casual jobs coming my way.
After a cup of coffee, my career perspective total changed. I was willing to scoop low and earn from whatever job presented to me. I recall walking home with new vigour and ready to face head-on. My friend offered a position in the company, which I gladly accepted. The next day I dress and left for work focused and ready to start a new life. It was challenging, educating and eye-opening opportunity.
The end month came fast, and I receive my paycheck. It was thrilling; this was my first pay in four years. The years had taught me hard lessons. I took half of the amount and requested my friend to guide me on saving schemes. I also bought my parents a gift appreciating their efforts to educate and host me for four years without any frustrations. The rest I managed through the new month. I stayed in the company for four months saving most of my salary. When I research different schemes and investment methods and how I can create wealth. I now know it’s not about the education but the attitude you have in life.
Today am one of the renowned businessmen in have invested in different securities. My sacrifice for the four months earned me various equities in the stock market. I have invested in the food (farm product) business and venturing into different potential markets. Over the years, I have learned few life lessons, especially on first time salary. The small money decision makes a significant impact in future.
Your Expenses and Savings
First time salary is the greatest elevator to financial freedom. You might feel obligated to enjoy with friends and family for your achievements. However, it’s the stepping stone to having a solid financial backup. In my case, my friend was kind enough to help me start my saving journey. He never misled me but offered financial education through his financial planner. It’s not a shame to have someone ahead of you. Spend on important stuff save your salary on potential platforms. It never hurts to start early; sometimes, I think I could have accepted all casual jobs presented. However, we all have perfect timing, save and invest for better returns in future.
Use your Company saving scheme or private saving scheme.
Various companies offer employees saving schemes such as 401(K) plans or Roth IRAs. Ensure to take advantage and invest in the programs. For companies without saving programs, research for good established saving firms. You can set an automated money debit service where the money is debited from your bank account every month. You can assume the amount transferred to the saving scheme is a bill that is mandatory to pay. However, any amount you decided is better than none. Never feel intimidated for not performing like others.
Pay Off Debts
Don’t use the whole salary to pay off your debts. First, make a list of the debts you have accumulated. In my case, I listed my student loan, credit card, app loans and friend’s loans (had quite many). After saving your portion, next take a particular per cent and direct it to the debts. This will offer more freedom, and once done; you will get more free money, which you can invest in projects or add to the saving schemes.
Emergency Fund
Life is not too perfect; you can lose your job or wield tragedy in your life something unexpected. This might mess with your finances leading to debts. To curb any emergency, ensure to have a different platform or bank account. Save you emergency funds to help you through a rough patch in life.
Health Saving Account
Health is a critical component of your finances. Insuring your health helps create more wealth. You are comfortable and assured of better health services. Various health insurance schemes are worth saving direct part of your salary to the scheme every month. Take advantage of a health saving policy in your company for guaranteed health insurance.
Am thankful to my friend and financial planners. I have learned a few aspects which have helped me in the financial investment path. It’s not easy, but no setback should define your financial path. Always try again and focus on your goal. Don’t compare your income or education levels; it’s a different race for everyone to focus on yours.