Financial Management From Day One
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photo credit: James Cridland
Starting a new job is an excellent time to look into setting your finances up better. An interesting article from Mint gives a long list of tips for new employees who want to do something about managing their finances from the word go. The tips include:
- Get your pay check paid by direct deposit rather than a check in the hand - it’s less tempting to spend it. (In most countries outside the United States, getting paid by check is impossible - bank deposits are the only way).
- Arrange for direct payments from your salary into a savings or investment account - pay yourself before you pay others!
- With a new income amount, it’s a great time to draw up a personal budget and find good strategies to help you stick to it.
- Use part of the new income to build up an emergency fund.
- Make sure you get sufficient health coverage from your new employer, or set up your own if the employer doesn’t offer any.
- Learn more about tax deductions and tax liability so that you can maximise how much money you get to take home each month by knowing what should be withheld.
- Use the regular income to regularly service your debt and try to reduce it as much as possible.
- Set up the right kind of retirement savings accounts. If you have a 401K that your employer will match, contribute the maximum amount possible.
Tags: finance | Investment | savings
This entry was posted on Sunday, August 10th, 2008 at 4:20 am and is filed under Financial Planning. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.
