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A First-Jobber's Guide to Investing | Edukasyon.ph
Grown-up Guide

A First-Jobber’s Guide to Investing

So you’ve finally landed your first job! Congratulations!

But just because you now have paydays to look forward to doesn’t mean you have to splurge everything you earn! Sooner or later, you’ll realize that it’s better to not spend all your money in one go! What if you get sick and you need funds to sustain your trip to the hospital? Plus you certainly have to think about your retirement plans in the near future, right?

So what can you do with your money in the meantime?

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Investing your hard-earned money is especially crucial and doing so can help you out in the long run. Doing so ensures that your money is growing and is kept safe for a later cause.

It is important to note, however, that investments mean taking a lot of risks, requiring the need to keep an open mind about the stock market and the companies you are vying for. While you’ll be able to see your investments grow, there’s also a chance that your investments would fluctuate and you wouldn’t get more than you thought you would.

Here are ways on where and how you can invest your money on your first job.

Maintain a Budget

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It sounds like a downer hearing this right after getting your first paycheck, but we cannot emphasize how important this is for you to do. But don’t fret – this is just a method for you to know what you can allot for your savings and what you can spend – you wouldn’t want to spend all that you earned in one go, right?

For starters, don’t spend your hard-earned cash on luxuries right away. Money Under 30 recommends setting aside 20% of what you’ve earned for your savings and 50% of your expenses for your essentials such as food. You may use the rest for your daily expenses.

Set a Retirement Plan

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Find time to invest in a retirement plan as early as possible so you wouldn’t have to worry about expenses by the time you hit 60. Sure, parts of your monthly income automatically gets sent to your SSS, but investing in insurance plans, for example, can also help you stay financially secure after retirement.

Money-Market Funds and Time Deposits

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Do you need to buy something that you’ll be needing in less than three years? Money-market funds and time deposits are some of the good ways to help your money grow if you intend to purchase something on a short term basis, since their interest rates already have assigned maturity dates.

Investing in Stocks

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For long term goals, learning how to put your money in stocks seems scary for newcomers, but even first-timers can invest their cash in the stock market!

First of all, you will need to read up on the stock market before you can even invest your money. You can invest a portion of your savings and let it grow from there. For beginners, you may either start by opening an account and invest in Mutual Funds or UITF in Equity, which doesn’t require you to monitor it since investment managers are the ones in charge of your investments. From there, you may now start investing in the stock market.

According to Moneymax, it is advisable to leave your earnings from the stock market untouched for at least a decade so you can let it grow.

Ultimately, there is no fail-safe way to keep your money growing, and each investment has its own risk. But as long as you know where to invest your hard-earned cash, you’ll be financially insured in the long run!

Want to learn more about financial literacy even at a young age? Do you want to read more practical tips and guide on starting out in the adult world? Check out Edukasyon.ph and its blog section now!

 

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