Getting first salary gives financial freedom to young earners, isn’t it? If you are thinking you are financially free after receiving your first pay check, Stop! Wait a moment!
You just entered the 1st step of financial freedom, don’t just enjoy the “Live in the Moment”, instead think of your financial future ahead!
A young earner should develop these financial habits to lead a peaceful life during retirement. One should implement this Financial Habits from their early career. They are-
- Pay Yourself First– After receiving their first salary, one should set aside 30-40% of his earnings for future needs and spend the rest. One should mandatory save atleast 30-40% from their initial career.
If one started saving from their first pay check, it would inculcate savings habit in the future too which would develop into a huge corpus in your golden years(Retirement)
- Investment in financial knowledge pays you the best interest- Gaining formal education from books would not suffice your earning capacity. You should be a natural-learner.
Gaining technical knowledge from formal education would show the path to your earnings, but you should gain financial knowledge around you.
You should try to learn basics of financial knowledge and take help from financial experts, if needed. But you should not stop gaining financial information around you! Do you think it is not possible?It is possible! In todays digital era, financial information is at your finger tips. You can find vast information on google where you can learn the basics, up on experience you would be master in financial knowledge.
- Search for second source of income– You should not satisfied with your primary income. You should make money works for you! Can’t understand! You should create “Passive Income” to support your financial health in the absence of the primary income.
Life is uncertain! No one would predicts when would your physical health doesn’t supports you to work further! So you should think of creating “Passive Income” from your early years.
- Never work for money instead work in what ever field you like– Even though they don’t like that job, Some people works for monthly pay-outs! Yes monthly salary is important, but doing work without interest would make you feel uncomfortable as years passby!
So identify which field do you love to work and choose that job! By doing your job whole-heartedly you will enjoy the work and automatically that money would satisfy you than the previous one!
But don’t neglect to learn latest updates in your interested field as technology is upgrading faster than before. If you upgrade, then only you will enjoy your job!
- Set your financial dream– Some don’t have any financial goals. But every one should set a financial dream and it should be SMART-
- S- Smart
- M- Measurable
- A- Achievable
- R- Realistic
- T-Time Bound
You should work towards achieving Your financial goal and should have a burning desire to achieve them!