The only day better than Friday – Pay Day
The thought of receiving my first pay cheque was extremely exciting until I soon realized it meant paying my own bills, which helped me come to the conclusion that I am quite an expense.
Having a background in financial planning, receiving my first pay cheque was not about how quickly I could blow it, but rather how I could use it to achieve my financial goals.
I absolutely love budgeting so long before being even close to approaching pay day I already knew how my cheque would be spent. Not a night out on the town – but rather on rent, household expenses, fuel, entertainment, my phone contract, a gym contract, provision for unforeseen expenses, saving towards travelling, some money to spend, car insurance, medical aid, taxes and one that not many young people my age think about – savings toward retirement.
Not only is this vital so that one can retire comfortably however you get a tax benefit from contributing as well – it’s a win-win situation!
After drafting my budget, I soon realized that the figure I came to and the figure on my pay cheque did not coincide. This can be a great worry however I am lucky enough that my parents are helping with the shortfall for my first year.
Something I did not include in my original budget was income protection as one often thinks that we are young and invincible however – that is not the case. Anything could happen and paying under R100 to cover that risk is extremely worth it in my eyes.
I have not taken out life cover, which surprisingly a lot of young people who just start out in the working world do take out even though they have no dependent’s or liabilities to pay. It is so important, especially when starting out and not earning too much money, to spend what you have wisely and not waste it on things that are unnecessary.
As the quote goes, it’s not about how much money you make, it’s about how you save it!