Starting a career comes with a certain thrill and nervousness most people are not prepared to handle. A new career brings with it a professional and life-enhancing flexibility or other benefits. It could also strain your finances if you are not well prepared. Outlined below are tips to help you safely navigate the turbulent and tricky waters of a new career.
Pencil out a budget
Starting a new career is like visiting an unknown place, you don’t know how much gas your car will consume, but if you’re prepared for the worst, nothing surprises you. The only way you can achieve this is by mapping out a budget. Mapping out a budget will help you quickly adapt to sudden changes and will help you monitor your spending, whether you are spending more than you make.
Your budget should first comprise of essentials like rent, utilities, transportation, and groceries. This is to enable you to ascertain how much is left for other spending and saving.
Although, you’ll be tempted to eat out, take expensive taxis or buy expensive clothes. It doesn’t matter how fat your paycheck is, you’ll always need the extra money sometime so stick to your budget and always spend less than you make.
Plan for school
If like most careers, your career requires more study, add schooling to your timetable. Educating yourself more will increase your chances of survival in your chosen field and reduce competition. Planning for school could be full time or part time depending on the abundance of time you have. Also helpful are sites like FinAid.org that hosts a platform where you can get teaching jobs or fellowships.
Keep on saving
The importance of saving cannot be overemphasized. For a career starter, retirement contributions you make early will help in maximizing the time your money has to grow. A new career could tempt you to spend lavishly so that you can belong to the ‘club’. Don’t do it. Out of every dollar earned, save something for the rainy day. Open an IRA and keep saving while going through your career.
Steer clear of debt
“Debt is a dream killer.” This is the first rule, stay off debt. Debt can stop you from doing a lot of things, it could stop you from taking that dream job simply because the salary cannot cover your monthly spending. Debt could even shut the door completely on a favorable job offer. While on the contrary, a debt-free life will shower you with energy and motivation to pursue a wide array of career opportunities.
Although staying off the debt completely can prove to be a difficult task for a career starter, owing to the numerous students’ debts incurred in college and grad school, a debt-free life is achievable. All you have to do is read the article from the beginning until you get it right.
I know what you’re thinking, that it’s too soon to start investing. No, it’s never too soon. The key to a good investment is starting early. Which means more time for your money to grow. A good investment option is buying stocks or mutual funds. All these will go a long way in securing your future, but you must start now while you still can.