It may be tempting to start spending when you receive that first paycheque from your new job. Everyone has been there, the sudden influx of cash, the flying feeling of newly earned financial stability. However, a lot of people don't know that it’s what you do with that first cheque that will set you on the road to either success or ruin. It’s easy to stay on the straight and narrow with a little planning though.
Set up a savings account if you don’t already have one.
Australians are saving more now than they were five years ago. However, the incontrovertible truth remains, we still don’t save enough. Setting aside a chunk of your income every month for retirement, unexpected expenses, or emergencies is not only smart, it’s essential. There are many options for saving, and banks are now competing with higher interest rates in order to earn your business. Whether you put your money in the stock market, a bond account, or a simple saver, the important thing is to just save, wherever you can which goes hand in hand with the next point.
Take stock of all your expenses right away.
By understanding the breakdown of costs that you face every month you can better plan for your future. Taking account of your rent, utilities, average spending on nights out and groceries, and current saving habits can help you make smarter financial decisions across the board. One way to achieve this is to think of your cash flow as a pie chart. Instead of the price of your housing bill, consider it as a percentage of your overall spending. This way, you can make immediate changes to the proportions of cash leaving your account in relation to your priorities.
Learn about your tax burden.
Understanding the different taxes you will incur can help you get a better sense of the net earnings you have available to you. For example, knowing whether or not you must pay the medical levy surcharge, can signal whether you will owe additional expenses to the government, or need to seek out a private health insurer. Just as you account for all of your outgoing expenses every month so too must you evaluate the tax threshold you fall within. Balancing your personal budget is essential to financial stability over the long term, so knowing the discrepancy between your gross and net pay is crucial.
Understand your medical options.
Getting a handle on your taxable income is important, but not as important as your health. Financials aside, more Australians are covered at private hospitals than public health services. The federal government provides some of the best healthcare on the global market through a robust public system, but that infrastructure is taxed by a large population. However, because of the strength of public medical services, private patients are able to find coverage through other means at affordable rates.
Round out your wardrobe with stylish and affordable clothing.
Now that you have a full-time position, you need to look the part too. Ditch the ragged jeans and six-year-old trousers and shop for affordable yet stylish clothing online. Search for essential business savvy items like no iron womens blouses, suits, professional denim, oxford shirts, and work-appropriate shoes. There’s simply no excuse for showing up to work looking sloppy. First impressions make a lasting imprint on your colleagues and supervisors. You wouldn’t go to an interview looking unkempt, so don’t spend your days in the office afterwards that way.
Your new gig should be an exciting part of your life, and the pay that comes along with it ought to be just as liberating. Make sure you carefully consider the financial decisions you will be making in the first weeks or months after stating in that new role in order to set off on the right path.