Hello Sophisticated Spenders!
When I got my first summer job 23 years ago, I spent that money faster than you can say supercalifragilisticexpialidoc
Over that 23 year span I held over 30 jobs and I learned valuable lessons at every single one.
Here are a few ways to maximize your income at any salary:
1: Sign up for the 401k. My first question (after when’s lunchtime) has always been, “When can I sign up for the 401k?” This question is immediately followed by, “How much is the company match?” We ALL know that one day we will retire. Why not start saving while you are young and full of energy? And if your company will match your contributions that’s a win, win situation. NEVER pass on free money!
2: Set it and forget it. I have each paycheck going in 3 different directions: 1 account for bills, 1 account for fun and 1 account for savings. This makes sure I am always living within my means. When the money in my fun money account is gone for the month, I get really creative on ways to have fun for free!
3: Invest! Find your comfort zone and own it! I invest in a whole bunch of different things. I bought the duplex that I grew up in. I own stocks in my favorite companies. I’ve invested in my blog. I invest in myself all the time. I invested in my education (hello student loans). And I also invested $400 in my fitness certifications and now I earn around $400 a month teaching fitness classes on my lunch break at my job.
4: Pay off debt! I wasn’t always smart with my money. But you can guarantee I pay $0 in credit card interest. I make sure I pay off my credit card in FULL! My only loans are mortgages (on my investment properties) and student loans. My loans all bring money in my pocket in the form of rental income and my fancy pants engineering job that I have thanks to my engineering degree.
5: ALWAYS have an emergency fund! I try to keep at least 3 months living expenses socked away for emergencies. Emergencies have a way of happening at the worse possible times. Just when you think you can’t handle anything else going wrong…something goes wrong. Your emergency fund will keep you out of the nearest homeless shelter so please take this step seriously!
You can follow steps 1-5 no matter where you are in your career. I would recommend getting started TODAY! You will be glad you did!