Starting your career right
Say you’re fresh out of uni, or maybe a couple of years into your professional working life, your pay cheques are giving you a little more than you’ve had in the past, what do you do with the leftover cash in the bank? It’s often a natural reaction to go out and spend that extra dosh on things you’ve been wanting for the longest time. Other people might spend that extra money on going out, or holidays or special long-awaited purchase. TWiCE thinks that when it comes to enjoying the benefits of your hard work, a measured and even approach to your spending is the best shout. Financial planning is key.
We all want to work to live, and not live to work, and that’s why preparing and making money wise financial decisions at the early stages of your career can set you up for life. TWiCE believes that building up your financial freedom is a lot like building a house; without a good foundation there’s a good chance the house could topple over. That’s why there are a few things you can do to put you in a good position early on, build that solid foundation, and then get your money to do more of the hard work for you.
One of the easiest things you can do is open up a savings account and get cracking on putting some money away. TWiCE believes that practicing good saving habits is one of the most important steps towards greater financial freedom. Putting away just a little bit every month can over the course of a year end up being quite a bit. Say you put as little as £50 away every month for a year, at the end of it, you’ve got £600 which you can then use or put away for something bigger. If you can put that money into an account that accrues interest monthly (even if it is at a relatively low rate), that money will give you something back - just for sitting in your account!
One of our members here at TWiCE is a recent migrant from Australia who managed to put enough money away to self-fund their move here. A year into their 5-year degree, they set themselves a savings goal of $5,000 so that they had a bit of money to work with for any potential career move. Unfortunately they couldn’t receive much assistance from their family, and despite the fact that they worked an entry-level job while juggling their studies, they set themselves an admittedly ambitious savings target of $92 a month. Our TWiCE member went about opening a savings account that accrued interest monthly, and automated the amount into their savings account each pay, a practice that encourages responsible spending. While it did mean that at times our member did go without, as their hours worked varied, they were able to meet that goal by the time they finished their studies. That amount covered their visa, their flights, and a bit of money to get started once they arrived.
The kind of savings habits used by our member is something that TWiCE wants everyone to develop. If we can help everyone build a strong savings culture, both for themselves and their communities, TWiCE hopes to help people take back control of their finances, and their freedom.
- Tom L
Disclaimer: The above information does not replace financial advice. Please ensure you seek independent financial advice before making any decisions regarding your finances. We also recommend that you carry out your own research to ensure that this is right for your own unique circumstances. Please note that we sometimes link to other websites but we cannot be held responsible for their content.