From your first month’s salary and beyond

You might be reading this after having just had your adult child start their first job, or you might have just started your first job, fresh out of school or university.

Starting your first job is an exciting milestone but comes with much to consider. You may have left student life, where penny-pinching was your lifestyle. Now that you have money coming in on a monthly basis, it's important to start planning how to navigate this new chapter of your life.

Your journey to prosperity begins now!

Here is my checklist to help you.

Check your financial status.

It's exhilarating to see your bank balance swell with your first month's pay, but it's crucial to kickstart your financial planning now. By mapping out your income and expenses, you'll gain a clear understanding of your financial position, empowering you to make informed decisions.

You may have student debt or an overdraft, so it is essential to work on paying off credit cards and overdrafts. Student loans are automatically deducted from your salary, based on your earnings. If you're not yet at that threshold , it's a good time to pay off other debts. Avoid accumulating more debt and focus on living within your means. This approach promotes financial stability. If you do feel your debt is out of control seek help. I have added some important information about debt in a blog here.

Understanding where your money is going is key to financial management. Make sure you track your income and expenses, there are lots of apps that can help you such as MoneyHub, Snoop and Emma. Plus many banks also provide budget tracking software. Tracking not only helps manage your spending but also enables you to save for future goals.

Start Saving

Set aside a small portion of your money each month. Even a small emergency fund can help cover unexpected expenses and prevent debt.

Open a savings account or start an emergency fund. Aim to save at least 10-20% of your monthly wages. Start an ISA and take advantage of the tax-free savings these offer. Work with a financial advisor to discuss as saving and investment strategy.

Understand your Tax

Check your payslip for deductions and understand what they mean. Make sure you are on the right tax code and double check you are not owed any tax. Find out more about tax codes here and if you are unsure if yours is correct speak to the payroll or HR department.

Pension and Retirement Plans

It is never too early to start contributing to a pension plan. If you are aged 22 or older and earn more than ￡10,000 a year, your employer must offer you a pension scheme . They will contribute 1%, and many companies contribute more. Add your own contribution and remeber that small amounts add up. Starting early means you will benefit from compound interest, so this will significantly benefit you in the long run.

Take advantage of Perks!

Employers may offer additional benefits, such as gym memberships, health insurance, and help with travel costs, such as season ticket loans or professional development funds. Take advantage of these! Some might be taxable so do check.

Workplace culture

Get to know your colleagues, attend company events, and seek out mentors who can offer guidance and support as you navigate your new role. Every workplace has its own culture. Observe and adapt to understand expectations around communication, dress code, and work-life balance.

Professional Development

If your employer offers training opportunities, grab this with both hands. Additional training will help you bolster your promotion opportunities and gain deeper insights into your chosen industry. Training in personal skills, such as communication and speaking, and furthering your industry knowledge is incredibly valuable.

Set Personal and Professional Goals

Setting personal and professional goals is like drawing a roadmap to your future. Whether it's learning new skills, saving a certain amount of money, or aiming for a promotion, these goals will keep you focused and motivated on your journey. Vison boards are also a great way of keeping you on track with your goals.

Learn the Basics of Personal Finance

Educate yourself on basics like credit scores , interest rates, and investing. This knowledge will help you make informed decisions as your financial situation evolves.

Your first job is a big step, and planning is key to financial success. Learn as much as you can about financial planning, and this will help you achieve your goals. Check out my personal finance top 10 list here for more information. Or buy a copy of my book 'She Can Prosper' The book aims to provide women of all backgrounds with the knowledge, tools, and support they need to take control of their financial destinies.

This book shares not only my insights and advice on the importance of financial education but also the stories of women who have successfully achieved their financial goals and those who made serious errors of judgment.