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The Ultimate Guide to Manage Your First Pay check Right

The Ultimate Guide to Manage Your First Pay check Right

The excitement of your first real job comes with the anticipation of your first real paycheck, in addition to musings about what to do with your hard earned money. However, when it comes down to the payday, nothing can rain on your parade more than receiving a much smaller figure than you were promised. Deductions for health insurance premiums, taxes, and certain other employee related costs can leave a rather inadequate amount to pay for your rent, food, bills, and other necessities. However, if you spare some time for saving and budgeting, you might even be able to pay off your loans and retirement funds down the road, in addition to making ends meet.  While managing your own finances can be a rather daunting task, this feat is absolutely necessary for people with limited means.

Developing a realistic budget based on your expenses and initial salary can foremost ensure that you don’t end up broke and back to your parent’s nest by the end of the month. It can be hard to know what to do with your money when you have never had to deal with an actual budget, so here are a few tips on helping millennials make budget for their first job:

First things first—pay off debt

Auto loan debts, student load debt, credit card debt; sounds familiar? These debts plague the lives of every young worker. Why not leverage your new source of income to roll the ball with repaying your debts, just like your lenders expect you to. This is all the more important because the sky high interest rates can cripple your financial standing in the long run, and make it a challenge to move forward with your career. As a new earner, paying off debts should be high on your list. This doesn’t entail paying off the entire balance, until you are far behind on your payments, but you should factor into your paycheck the fact that you are right on schedule with your payments.

If you are one of those people who get into the habit of paying only the minimum payment for your credit card debt each month, it’s high time to change your ways as soon as possible. Minimum payments can protract your payments out to years, costing thousands of dollars in interest. Make it your utmost priority to pay off your high interest credit card debt first, before it accumulates to insurmountable monstrosity.

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If you have any pending student loans, you generally get 3-6 months after graduation before you are expected to pay. Instead of whiling away your grace period to rest on your laurels, you should plan how to go about your payments before they commence. Factor in the minimum payment in your budget and determine if perhaps you can afford to spare more than the minimum. If so great! You can simply restructure your budget around it.

Set a Budget

If prior to this job you were in in school, chances are your finances were pretty basic and making ends meet was no rocket science. You likely had some preliminary utilities and bills to pay, and your education was probably funded by student loans or any third party source. However, now that you have crossed over to the workforce threshold and all that comes with it, your cash flow needs will undergo a drastic transformation, causing you to rethink how to make the most of your money.

After you determine what portion of your paychecks will be left over after payroll and income taxes, it is time to sit back and jot down your monthly expenses; i.e. your needs and probable wants. How much is your current rent and will you be moving to a nicer place now that you have the extra cash? How much time do you get before you absolutely have to start paying back your student loans, and how much can you afford to pay? Such big expenditures determine where a significant chunk of your money has to go every month.

When working up your budget, it is prudent to start with your fixed monthly bills, including your credit card payments, internet, phone, utilities, car insurance, renters insurance, student loan,  car payment, and your rent. To that, add up your variable work related monthly expenses, including:

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  • Travel

Only a fortunate few get to live within a walking proximity of their workplace; the rest have to travel and traveling requires cash. So unless you cycle to work, you need to add the cost of traveling to your expenditures. If you use public transport, it’s a good decision to purchase a season ticket that lasts an entire year.

  • Clothes

If your job entails special clothing or a uniform, this is generally supplied by the employer. However, considering your personal wardrobe and everyday work clothing, such as smart clothing and suits, you need to buy them yourself. While work clothes can touch the higher end of the price spectrum, you can shop around super markets and the high streets to find reasonable work wear ranges, or even check online stores for great bargains.

  • Food and drink

You’ll need to have lunch at the office everyday so you can decide between taking your own in and buying it there. Eating out regularly can cast a shadow over you finances, but some companies incorporate canteens that offer cheaper meals to employees.

  • Mobile phone

Being away from your family and friends while at work requires you to use your phone every day. Check to see if you are not going overboard with your allowances and also consider switching your phone tariff.

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  • Socializing

This expenditure is the toughest to figure out on your first job since you are not familiar with the social scene of your new workplace. Whether you would need to join a dinner party to be “one of the girls”, or decamp to the wine bar with the entire team for the happy hour every Thursday, how you choose to socialize at work dictates your budgeting decisions.

Next, you need to deduct your monthly expenditures and cash needs from your take-home pay to calculate your discretionary income before deciding what portion of this pay you want to save each month. If the remnant of your salary doesn’t promise much prospects for saving, review your variable expenses, such as entertainment, shopping, and other miscellaneous, to see where you can cut back.

Once you get a hold of monthly savings goal, make sure to automate the transfer of funds into your saving account so that you avoid tapping into your savings every now and then for impulse buys.

Plan for Emergencies

Planning for a saving fund from day one lends you the resources you need to make major purchases down the road, in addition to helping you weather financial storms. A broken cell phone, a car accident, or a layoff can greatly disrupt your income and wreak havoc on your budget. Putting away some petty cash in the sunny days can help you avert using credit cards and get sucked deeper into the swamp on a rainy day.

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To garner a vestige of financial stability, you should ideally try to save the equivalent of up to 3-6 month’s worth of your salary. Once you have met this goal successfully, forget that the money exists. Keep your money isolated by moving it to an account not linked to checking. Going to such rigid measures ensures that you don’t transfer funds with the push of a button for whimsical purchases.

Limit Your Debt

While regularly using a credit card can help you build credit, it is not prudent to make impulse purchases that you can’t pay for right away. If you are already in the throes of a high-interest credit card debt, devote a significant chunk of your cash that you have set aside for savings towards your outstanding balances. While paying off high interest debts should be your utmost priority, do not overlook the necessity of having an emergency fund in place.

The grace period that you are entitled to before you have to start paying back your student loans, is a great time to save as much as you can or even cut some credit card debt. Budgeting your salary from the beginning can avert your paycheck from draining as soon as the bills start pouring in.

Save for Retirement

Sign up as soon as possible if your company offers a 401(k) retirement savings plan. If not, a traditional Individual Retirement Account (IRA) or a ROTH might suit you better. While these contributions come out of your pocket, if you get used to your full pay and delay enrollment, it might be harder for you to allocate money into your retirement funds later. It’s better to start saving early as it helps your investments to grow and bolsters the money that you will make over the years. Even if you find it hard to contribute a lot at the start, consider a minimum to get your employer’s best matching contribution, or perhaps 1 percent contribution, and then build up from there. I wrote this article with help of my childhood friend and co-founder of couponbend.com Vicki James. She is my best friend and we discussed many points before i complete this awesome article.Enjoy reading!

Featured photo credit: Earn Real Money via lifehack.org

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Last Updated on November 5, 2018

20 Best Places to Work for a Great Career in 2018

20 Best Places to Work for a Great Career in 2018

Looking for a job? There’s no doubt to the fact you will want to work with a company that appreciates you for who you are.

Well, good news. The labor market today is one that has peened up with more opportunities for advancement and personal employee improvement. This is partly due to the fact that a lot of companies have been made to understand the value of their biggest assets: the employees.

To wit, here’s a list of companies- across a wide array of industries- that have been able to develop working environments that are healthy and accommodating to workers.

Take a look at these 20 best place to work for a great career:

1. Salesforce, San Francisco, California,

    Salesforce is in the information technology business and the company ranks highest due to their commitment to learning and innovation. They are ready to try new things and everyone with a new idea is always welcome to share it at the company. The company has also been known to exhibit an exceptional approach to alignment.

    Find out more about careers in Salesforce

    2. Wegmans Food Markets Inc.,Rochester, New York

      Based in Rochester, New York, employees have been known to enjoy a sense of purpose from working here. The company has been able to achieve an optimal level of engagement across all working tiers and they’ve been able to achieve great things together. They even do deliveries.

      Find out more about careers in Wegmans

      3. Ultimate Software, Weston, Florida

        Employees get amazing benefits here but that’s not the only reason why this place is so awesome to work. Whenever there is a need or a death of an Ultipeep or any of other family members, the company shows love and support like no other.

        Find out more about careers in Ultimate Software

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        4.The Boston Consulting Group, Inc., Boston, Massachusetts

          Development is at the center of anything that goes on here. The business is about people and employees are the company’s biggest asset. Employees are able to challenge the status and also leave impacts on clients.

          Find out more about careers in The Boston Consulting Group

          5. Edward Jones, St. Louis, Missouri

            Edward Jones is admired for their ability to acknowledge history without being mired down by it. The company builds on a solid foundation but there is also a level of flexibility that allows for innovation.

            Find out more about careers in Edward Jones

            6. Kimpton Hotels and Restaurants, San Francisco, California

              Kimpton is a trendsetter in the hospitality industry. The company always strives to try something different and that perspective is welcomed there at all times. Enjoy the weekends with luxury rooms, conformable mattress, furnished and well dressed service staff. A great opportunity for job seekers.

              Find out more about careers in Kimpton Hotels and Restaurants

              7. Workday, Pleasanton, California

                Newbies will find no issues with feeling welcome and at home here as this has always been a core culture component of the IT giant. Everyone is treated like family and this fosters a sense of oneness.

                Find out more about careers in Workday

                8. Genentech, South San Francisco, California

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                  Here, employees are encouraged to be themselves. There is a feeling of care, safety, and acceptance that you get here that you can’t get at many firms. The development of an all-inclusive environment has always been foundational.

                  Find out more about careers in Genetech

                  9. Deloitte, New York, New York

                    Deloitte is one of the biggest professional service providers in the world, noted for their focus on constant learning, development and improvement. They invest in their employees and are concerned about their well being.

                    Find out more about careers in Deloitte

                    10. Baird, Milwaukee, Wisconsin

                      Baird is a financial services provide that is known for adopting a “no asshole policy’ which guides the way people relate with and respect each other, regardless of their position on the company’s hierarchy.

                      Find out more about careers in Baird

                      11. Quicken Loans, Detroit, Michigan

                        At Quicken Loans, the views and opinions of everyone are respected and heard. The organization is revered for the amount of investment they put in their team members and everyone looks for ways to grow and be better.

                        Find out more about careers in Quicken Loans

                        12. Capital One, Mclean, Florida

                          Capital One has adopted a culture that encourages employees to take risks and try new things. They foster a healthy work-life balance and associates are challenged to live better lives.

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                          Find out more about careers in Capital One

                          13. Cooley LLP, Palo Alto, California

                            Cooley LLP is a law firm known for their ability to care about the company culture and being able to develop a working environment that is empowering and fun. Cooley is known to go for the best when it comes to their employees, regardless of the occasion.

                            Find out more about careers in Cooley LLP

                            14. Southern Ohio Medical Center, Portsmouth, Ohio

                              The medical center has been known for their propensity to delegate so much to their employees, thereby providing them with the ability to grow and learn on the job. In the end, you get a workplace that is all-engaging and super fun.

                              Find out more about careers in Southern Ohio Medical Center

                              15. American Express, New York, New York

                                American Express is a firm that celebrates wins, no matter how small. Everyone is made to share the same attitude towards service and the people they are to serve, thereby making people care about what they do.

                                Find out more about careers in American Express

                                16. Adobe Systems Inc., San Jose, California

                                  The culture at Adobe Systems is one that encourages employees to develop their own ideas and get a strong viewpoint. As opposed to encouraging competition, work-life balance is fostered everywhere here.

                                  Find out more about careers in Adobe Systems Inc.

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                                  17. The Cheesecake Factory Inc., Calabasas, California

                                    The Cheesecake Factory rewards dedication and hard work. Promotions come pretty easy, and there is always space for guidance to develop your experience and skills.

                                    Find out more about careers in The Cheesecake Factory Inc.

                                    18. Sap America, Newtown Square, Pennsylvania

                                      If you’re looking for a new career path, SAP might be the best bet for you. The company is adept at recognizing value and transferable skills. And you can always look for a new path while maintaining your employment.

                                      Find out more about careers in Sap America

                                      19. NVIDIA Corporation, Santa Clara, California

                                        NVIDIA is known for looking after even the smallest of things. With even a “pets allowed” policy this company accepts you for who you are, and helps you to work within your personality. Advancement is also fostered, and you are able to collaborate effectively.

                                        Find out more about careers in NVIDIA

                                        20. KPMG LLP, New York, New York

                                          Communication and progressive collaboration are the foundation of this company’s workforce treatment. Regardless of the level you are, someone is always at the ready to help and the company rewards extra effort with gratitude.

                                          Find out more about careers in KPMG LLP

                                          All in all, it’s safe to say that you will be able to find somewhere to apply your skills (whatever they are) that is all inclusive and highly accommodative. Companies today are being made to understand how much they can get when they treat their employees right and this has opened the door to an encouraging work environment for all.

                                          Happy job hunting!

                                          Featured photo credit: Pexels via pexels.com

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