4 Ways To Manage Your Money With Your First Job

 Few things in the world compare to the thrill of landing your first job. You are finally financially independent and free to chart the course of your own life. Of course, having your own income comes with its own challenges – like charting the course of your own life! Here’s how you can manage your finances so that you can fulfil all your dreams:

#1 Start a savings account separate from your salary account.

When you accepted your job offer, the HR department may have put you through an orientation process to get you acquainted with the essentials. One of these involved opening an account to deposit your salary in. While some companies accept existing savings accounts, others insist on employees opening accounts with a partner bank. In either case, you must now open a savings account that is separate from the salary account. Use this new account to deposit monthly savings in – start by setting aside AED 50 or 100 every month. You can increase the savings amount gradually when you are able to save more or when your income increases. Do not withdraw from the savings fund for any reason, only add to it. Over a couple of years, you will have a considerable amount of money set aside that you can use to realise a dream.

#2 Get a good credit card.

One of the most effective ways to manage your finances is to get a credit card. A credit card appears attractive because it helps you spend money for expensive purchases even when you don’t have ready cash on you. However, it also offers reward points (redeemable for future benefits), a range of experiences, benefits for those who like to travel, and so on. You can have a jet setting lifestyle with the right credit card, without straining your income too much – provided you pay your bills on time! Apply by checking your eligibility for a credit card in Dubai. Your eligibility for the credit card is determined by your income, age and credit history.

#3 Start building a ‘dream fund’.

At your age, you have your entire life ahead of you and a bright future that you can’t wait to explore. But you must plan well ahead to be able to realise all your dreams. Nothing great is ever accomplished without a roadmap for the future. List down all your goals and dreams for the year, then two years hence, five years hence, and so on. Your dream wish list could include buying a car, buying a house, taking a baking or wine course in France, starting your own firm, getting married and starting a family, etc. Put a date against each dream, and how much money you will need to realise it. Now take a look at your projected finances and start working backwards from each dream. Some good measures to have a sum of money for the future are to save regularly, make the right investments and stay away from unnecessary expenses.

#4 Buy insurance.

Though you feel invincible at a young age, there really is no way to predict what the future will bring. Are you certain that your loved ones can manage without your income in your absence? If you have even a single dependent, you must ensure that their future needs are taken care of even when you are not present in their lives. You can buy a term insurance plan to safeguard your loved ones’ future, and also your own finances by buying health insurance, car insurance, etc.

We hope these money management tips help you build a financial corpus that will help you realise all your dreams.