Highlights of today's show:
- How to handle the finances when you get your first big job
- Why it's important to clear your debt early
- What do you do when you get a promotion?
- How to avoid lifestyle inflation
- Our next Google Hangout
Getting your big job is really exciting. It's a transition from your childhood to being an adult. I remember the first time I got my paycheck from my real job. I was used to getting $100 a week checks working part time jobs in college so when I got my first paycheck after working two weeks I thought I was rich!
It is also exciting because it is nice to have options with what you want to do with your money. It is totally different from a job in high school or college where you are just earning money to spend on the weekends.
With that being said you can get into either some good or bad habits with money when you get your first big job. That is why it is so important to develop good habits while you are young. Today we continue with the "Life and Money" series by discussing in detail the four good habits you need to develop with money when you get your first big job. They are:
- Finding out where you stand financially-This is includes knowing how much assets you have, how much debt you have, as well as how much you will be making each month.
- Make a commitment to get out of debt-There's a good chance that if you went to college you have credit card, auto loan, or student loan debt. After determining how much you owe it can be overwhelming and you might feel like you will never be able to get out. But you have to start somewhere and remember your financial situation is not always statis. It can change but it all starts with you.
- Live within your means-This might mean you might not to get to live your ideal lifestyle such as living in the particular area of town, not being able to go out with your friends as much, or still driving your old car for a bit longer. But it does mean not stretching yourself too thin and allowing you options to do what you want to do later.
- Build wealth; not debt-Ultimately saving, but not overspending, will allow you to build wealth.
If you just graduated college and are looking for help on how to do a budget, pay off your student loan, and put yourself into position to prosper please check out the "You just graduated from college. . . now what?" Coaching package
In addition we also discuss what to do when you get the big promotion at work. Topics discussed include:
- Staying with your plan
- Re-evaluate your budget
- Avoid the lifestyle inflation trap
- Realizing your long term goals might change
- Don't rush a decision
- Continue to work hard
Finally we also want to announce that the next Google Hangout will be on Thursday October 4th at 9pm EST. Our topic will be on credit and debit cards. Look for more details in the coming weeks and please plan on joining us.
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You can find prior editions of the podcast at the podcast archive page.