Congrats on starting out your career and entering the workforce! Now, have you considered your finances? These financial tips could put you on the fast track to success. Set yourself up for success with Pearl Hawaii Federal Credit Union by your side. Rest assured, while you’re busy paving your way, we’ll handle the rest.
First, getting your finances squared before entering the workforce is the first step towards financial success.
Before Entering the Workforce, Get Set Up With Convenient Banking
Your finances could get a little more complicated once you enter the workforce so get organized. With Pearl Hawaii’s LIFE Manager, you can manage your assets all in one place. LIFE (Loans, Investments, Finances, Earnings) Manager helps you link your accounts at other financial institutions to make transfers, view balances, and manage money more efficiently. Create a budget, plan out your life, assign accounts, add expenses or income, create goals, or monitor your progress and spending habits. Log into PHFCUOnline and get started.
After Entering the Workforce, Pay Yourself First
After all, life isn’t just about making money. Especially, life is about helping you maintain and make your goals. Do you want to continue your education, travel, or save up for a big purchase? Once your first paycheck hits your checking account, consider setting up an automated monthly transfer to your savings account. This could help you start making progress toward your big financial goals right away.
If you start saving with your first paycheck, you will benefit from establishing a saving habit from the get-go. It could be harder to curb your spending later once you get used to spending your earnings. By paying yourself first, you just might set yourself up for financial success.
Take Advantage of Company Benefits
Does Your New Job Offer A Retirement Account?
If so, open a retirement account through your company. If they offer a matching program, open your account as soon as you can.
Your company may provide extra health insurance for you or your family. Depending on the policy your company offers, it could be less expensive than buying health insurance on your own.
Additionally, many employers offer basic insurance policies. For example, life insurance and disability insurance is an option some employers offer. These insurance policies could help protect you, your loved ones, and your ability to earn an income in the event you get injured.
Set Goals & Create a Budget
You may already know what your wages or salary will be, but remember that this number is your gross pay. Your take-home pay will be a little less due to taxes, retirement contributions, and social security. However, once you know your take-home pay, create a budget around that amount.
Look at how much you have to spend each month on needs. Essentially, calculate things like rent, car payments, utilities, groceries, and more. It’s smart to leave your discretionary spending for the last part of your budget. Basically, needs always come before wants.
It’s often easier to reach financial success if you’re willing to prioritize your savings, spend less than you earn, and live within your means. Once you have your budget, track your expenses to know exactly how much you spend and how you spend that money. Pearl Hawaii’s LIFE Manager will do much of this for you.
Make a Plan to Repay Debt
Do you have any debt? If so, make a list of your debts and create an action plan on how to pay them off. Especially, if you have high-interest loans or credit cards. Consider, consolidating your debt into a low-interest rate Personal Loan. Overall, with a low-interest rate Personal Loan, you will be out of debt quicker and save you money over time.
Starting your career with a strong financial foundation could put you on the right track for tomorrow. Giving your finances the first promotion could help you reach your financial goals.
When Entering the Workforce, Here’s Some Services That You Will Need:
Open an Account
Take charge of your money and start setting aside funds for a future home, new car, or anything else. Your funds are safe, secure, and there when you need them.
Start A Rewards Account
You’re making money and paying bills. A checking account that’s accessible and easy to manage while on the go is important. Earn cash-back on everyday purchases, pay bills, manage your budget, and more.
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Stay on top of your money, wherever you are. Create and follow budgets, pay bills, transfer money, and more, all in one place.