Advertising
Advertising

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.

Advertising

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:

Advertising

  • 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.

Advertising

  • 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.

Advertising

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

More by this author

6 Reasons Why French Press Makes the Best Coffee 9 Things To Remember If You Love Someone Who Doesn’t Easily Show Affection 12 Ways To Earn More Money While You Have A Full-Time Job 7 Steps to Reduce Your Laptop’s Fan Noise & Increase Speed 7 Ideas To Decorate Your Home Using LED Strip Lights

Trending in Work

1 10 Secrets of Making Every Presentation Fun, Engaging, and Enjoyable 2 Top 5 Easy-to-Use Accounting Software for Small Businesses 3 10 Best Success Books You Need to Read to Be Great at Business 4 16 Young And Successful Entrepreneurs Who Prove That Age Is Nothing but a Number 5 How to Use Visual Learning to Work More Effectively

Read Next

Advertising
Advertising
Advertising

Last Updated on February 11, 2021

10 Secrets of Making Every Presentation Fun, Engaging, and Enjoyable

10 Secrets of Making Every Presentation Fun, Engaging, and Enjoyable

Not a lot of people are good at public speaking. You could even say that virtually everyone needs to get some practice, and preferably good guidance, before they can learn to stay calm when facing a room full of people. Having all eyes on you is an uncomfortable experience and it takes time to get used to. However, even if you can manage to control your stage fright and stay focused, it doesn’t necessarily mean that your presentation won’t put people to sleep. This is usually the case with long presentations on a very dull subject, with the presenter speaking in a monotone voice and dimming the lights to play a PowerPoint presentation.

You have to work hard to develop the right skills

If you want to be remembered and actually get people engaged, you need to make your presentation fun and enjoyable, without coming off as corny or desperate to please. I know, it doesn’t sound that easy at all! A good presentation during a promotional event or given to an important client can be a game changer for your business, so it is easy to get stressed out and fail to perform all that well. Luckily, giving an interesting lecture is something that can be practiced and perfected. There is plenty of advice out there on the topic, but let’s look at the most important aspects of giving a memorable and fun presentation.

1. Make your presentation short and sweet

With very long, meandering speeches you tend to lose the audience pretty early on, and from then on out it’s just a test of endurance for the few bravest listeners. Not only will people’s attention start to drop rapidly after sitting and listening to you talk for 30 minutes, but you also risk watering down your core ideas and leaving your audience with little in the way of key phrases and important bits of information to take away from the whole ordeal. Famous speakers throughout history have known the importance of condensing the information by using well thought out sentences and short phrases loaded with meaning.

JFK’s famous: ”It’s not what your country can do for you, but what you can do for your country,” expresses so much in very few words and gets the audience thinking. Ancient Spartans, for example were famous for their quick, dry wit, often demolishing their opponent’s argument with a single word or phrase. You’ll want to channel that ancient spirit and be as concise as possible when preparing your presentation.

Advertising

2. Open up with a good ice breaker

At the beginning, you are new to the audience. There is no rapport, no trust and the atmosphere is fairly neutral. Even if some of the people there know you personally, the concept of you as an authority on a particular matter giving a speech will be foreign to them. The best way to encourage a warm and friendly atmosphere is to get some kind of emotional response out of the audience right at the beginning. It doesn’t matter what emotion it is, you just need to connect with them on a more personal level. It can be shock, curiosity, laughter, knowing smirks, nervousness – whatever gets them out of that initial feeling of indifference. There are different kinds of effective ice-breakers, but generally speaking, the most successful ones utilize one of these tactics:

  • Joking
  • Tugging on their heart strings
  • Dropping a bombastic statement
  • Telling an interesting and relevant anecdote
  • Using a metaphor or drawing comparisons

You can make a small, self-deprecating comment, stir the presentation one way and then suddenly surprise the audience, use sarcasm, open up with a short childhood story that taught you a lesson, quote a famous person and elaborate on it from personal experience, use an inspirational anecdote or hit them with a bit of nostalgia. Just remember to keep it short and move on once you’ve gotten a reaction.

3. Keep things simple and to the point

Once you’re done warming up the crowd you can ease them into the core concepts and important ideas that you will be presenting. Keep the same presentation style thoughout. If you’ve started off a bit ironic, using dry wit, you can’t just jump into a boring monologue. If you’ve started off with a bang, telling a couple of great little jokes and getting the crowd riled up, you have to keep them happy by throwing in little jokes here and there and being generally positive and energetic during the presentation. You need a certain structure that you won’t deviate too far from at any point. A good game plan consists of several important points that need to be addressed efficiently. This means moving on from one point to another in a logical manner, coming to a sound conclusion and making sure to accentuate the key information.

4. Use a healthy dose of humor

Some of the best speeches and presentations in the world, which have been heard and viewed by millions, all feature plenty of humor. No matter the subject, a great speaker will use natural charisma, humor and beautiful language to convey their points and get the crowd excited about what they are saying. A great example of building rapport with the audience through the use of humor is Barrack Obama talking about the government building Iron Man.

Advertising

It is silly and fun, and absolutely not something that you would expect from a man in a position of power speaking in such a serious setting – and it’s exactly why it works. The more serious the situation and the bigger the accent on proper social behavior, the harder your jokes will hit.

5. Try to tell a story instead of ranting

Some people can do all of the above things right and still manage to turn their short and fun little presentation into a chaotic mess of information. You don’t want your speech to look like you just threw a bunch of information in a blender in no particular order. To avoid rambling, create a strong structure. Start with the ice breaker, introduce the core concepts and your goals briefly, elaborate on the various points in a bit more detail, draw logical conclusions and leave your audience with a clear takeaway message. You want to flow naturally from one part to the next like you are telling a big story chapter by chapter.

6. Practice your delivery

Standing in front of the mirror and practicing a speech or presentation is a technique as old as mirrors – well, come to think of it, as old as human speech, since you can see yourself reflected in any clear and calm body of water – and that means that it is tried and true. The theory is incredibly simple, yet the real problem is actually putting in the effort day in and day out. Work on your posture, your tone of voice, accent, pauses between sentences and facial expressions. The most important thing is to talk slowly and loudly enough to be heard and understood clearly. Many famous speakers, such as Demosthenes and King George VI, overcame speech impediments through hard work.

Advertising

7. Move around and use your hands

Although you won’t instill confidence in your project if you are very jittery, moving around erratically, not knowing what to do with your hands and making fast movements, standing dead still can be just as bad. You shouldn’t be afraid to use your arms and hands when talking as it makes you seem more passionate and confident. The same goes for moving around and taking up some space. However, try to make slower, calculated and deliberate movements. You want your movements to seem powerful, yet effortless. You can achieve this through practice.

8. Engage the audience by making them relate

Sometimes you will lose the audience somewhat in techno-babble, numbers, graphs and abstract ideas. At that point it is important to reel them back in using some good, old-fashioned storytelling. Make comparisons to events from everyday life that most people are more than familiar with. By making things look simple, not only will you help your audience get a better understanding of the subject by enabling them to visualize the information more clearly, you will also draw a connection between you. After all, you are all just regular people with similar experience, you just happen to be performing different roles at the moment.

9. Use funny images in your slides

Although slides are not really necessary at all times, if you do need them to make your point and present your information more effectively, it’s best to liven them up. They say that facts aren’t always black and white, and your presentation should reflect this. Add a bit of color, make the information stand out and use an interesting animation to switch from slide to slide. You can use the slides to add some more humor, both in terms of the text and the images. An image that is used to elicit a positive response needs to be funny within the context of what you are discussing. For example, if you are discussing the topic of authority, an image of Eric Cartman from South Park in a police uniform, demanding that you respect his “authoritah,” is a nice way to have a bit of fun and lighten things up.

Advertising

10. End on a more serious note

When all is said and done you will want the audience to remember the core concepts and keep thinking about what you have said after the presentation is over. This is why you should let things naturally calm down and end with an important idea, quote or even a question. Plant a seed in their mind and make them think. Let us turn to Patrick Henry for a great way to end a speech: “Is life so dear or peace so sweet as to be purchased at the price of chains and slavery? Forbid it, Almighty God! I know not what course others may take; but as for me, give me liberty or give me death.”

As you can see, there is quite a bit to learn when it comes to giving a good presentation, one that is both memorable and fun. Be sure to work on your skills tirelessly and follow in the footsteps of great orators.

Featured photo credit: Austin Distel via unsplash.com

Read Next