5 Ways To Save Money On Your First Job

By Michelle Wanjiku

Just because you are young doesn’t mean you should not think about your financial future especially if you want to live a good life. In this article, see some ways in which you can save money while you are on your first job in order to better your finances.

Saving is a great way of securing your financial future because it ensures you have money to use in case of emergencies or when you retire. It will also help ensure you have money that you can put into businesses or investments that will help grow your wealth.

See some of the ways to save money on your first job

1. Save as much as you can

Because this is your fist job you probably don’t have a lot of responsibilities just yet. Maybe you are still living with a relative and you don’t have to pay rent or electricity. This is the time for you to save as much money as possible.

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Although, you might have to help out financial wherever you are staying, you still don’t have to use as much money like you would once you start living alone.

If you are living on your own then you should ensure you do so below your means. Don’t live in a house where you cannot afford rent comfortably. Self discipline is very important here, the more you have left after paying all your bills the more money you can save.

Save before you spend

It might be exciting receiving your first salary and as such you might want to treat yourself but this is not necessarily a good idea.

Before you even spend a shilling of your salary you need to save the amount you have decided first. This will ensure that no matter what you are able to save every month.

If you find that you are unable to save immediately you can set up your account so that immediately your salary comes in, some amount is sent directly to your saving account. This will prevent you from skipping to save because you have no control over it.

2. Have a written budget

It might seem repetitive but if you have something that accounts for where all your money is going then you will be in a better position to save and build your financial future.

Nobody wants to live from pay check to pay check so the trick is to be smart with your money and track your spending in order to find ways in which you can save more.

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3. Carry Lunch

The best way to save more money is to stop spending it on lunch every day when you can as easily carry food from home.

Some people spend around 100 to 300 shillings on lunch everyday which translates to around 2000 to 6000 shillings a month. This is a huge sum that can go into other things such as your retirement fund or your investments.

4. Know your needs and wants

Most young people cannot differentiate between something they truly need to buy and something they just want to buy.

Take for example, do you really need that pay to watch TV if you are never home and never watch TV anyway? Or do you just want it because you want to look cool and all.

Once you have determined what is a need and what isn’t you will be able to know what to spend money on and what can wait.

5. Have separate bank accounts

You should never have your salary account and your savings account as the same. This is because you can access your saving at any time which defeats the purpose.

Ensure you savings are in a separate account that does not have an ATM and has a limit on how many withdrawals you can make. This will prevent you from spending your savings carelessly.

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It is important to remember that for you to have a good financial future you have to start now. Make a solid financial plan and stick to it. You also need to ensure that your money works for you by looking into investment opportunities that will help you grow your money.

The writer is a Communications Officer/Digital Marketer at Career Point Kenya