A Fresh Start in Your Career
When starting out a new career in the legal field, there is no doubt that you will be excited about what the future holds for you. Before starting your career, you were a student who was paying for an education, now, you finally begin to make some income. This is the moment that you have been waiting for. Finally your career can begin, and you can start to make the type of income that you have dreamed of. There is some caution that needs to be taken when you are just starting your career. Just because you are beginning to earn income, that does not mean that you should be reckless when it comes to your finances. In the following article, you will find some innovative ways that you can save money when beginning your new career.
Create a Budget
A budget is a great first step when you are beginning your new career. Many young professionals get caught up in debt, and it can be overwhelming. Not only does debt trap you, but it can wreak havoc on your finances for years. Instead of buying whatever you feel like you deserve, create a budget and save. This means that you will have a place for every single one of your dollars to go. As a part of your budget, you want to include expenses for food, hanging out, housing, debt repayment, transportation, and any other expense that you will have on a monthly basis. Once you create your budget, be sure not to go over it.
Get Out of Debt
Debt can be crushing, and this is especially true if you have heavy student loans to repay. Use your fabulous income to immediately start to pay off your student loans so that you can be debt-free within the next few years. It may be tempting to acquire more debt because now you feel like you are free, but by getting out of debt, you can get to a place in life where you owe absolutely nothing to no one, and you will experience true freedom. Once you are out of debt, you can loosen up your budget and allow for more hobbies, traveling, and toys.
There should always be a place for saving in your budget. This means that every month you will consider how much money that you earn, and you will set aside a certain amount for savings. You want to have a hefty emergency fund for unexpected events that may come up. You should have an emergency fund that will be able to cover your bills for three to six months. In this way, if you were to get sick, injured, or if you were to have an unexpected bill, you would be able to cover it without going into debt.
Plan for Expected Expenses
Expected expenses are those expenses that you know are going to come on a yearly basis. This may include California MCLE, car repairs, house repairs, hospital bills, etc. If you have expenses that you know are coming, you do well to put away a little bit of money every month to cover those expenses so that they will not catch you by surprise.
Keep Expenses Low
Since you are just beginning your career, maintain all of your expenses at a reasonable rate. You don’t want to go out and buy a new house or a new car because you have a high income. Keep in mind that you still have student loans that you have to pay back, and you want to be able to save up a good amount in order to make big purchases in the future instead of going into severe debt. This may mean that you are not going to be able to keep up with the Joneses, but the Joneses are swimming in debt, so you want to be different. By keeping your expenses low in the beginning, you will be able to truly have freedom in the future and afford your lifestyle.
You Can Save
Regardless of what the media or your friends say, it is possible for you to save money when you are beginning your career. You do well to create a savings plan and stick to it. By doing this, you will set yourself up for a life of financial freedom.