Working's great because you'll earn more money than you've probably ever had before. You might be living for the moment now with your newfound wealth, but eventually you may want to do more with your money. You certainly will have the funds to acquire or experience things that enrich your life in some new way, whether it's a gourmet lifestyle, a trip, a course or even furniture.
If your 'thing' costs more than a week's - or even a month's - pay, you'll need to set your sights by taking a longer-term view. And that means planning. Whether you decide to save for the things you want or to pay now using credit.
Whatever it is, it's the same principle; through work, most of the material things you want become achievable.
But working can also cost money. That's why it's important to set a budget. Then you'll know how much you can spend on yourself, after allowing for essentials like clothes, transport and rent.Ask yourself:
Use this worksheet to fill in your own goals. Then print it out and stick it on your fridge or wall so you're constantly reminded of what you're working towards.
| Short-term 0-3 years (for example, trip to Thailand in 6 months) | |
| 1. | ______________________________________________ |
| 2. | _______________________________________________ |
| 3. | _______________________________________________ |
| Medium-term 3-5 years (for example, pay off new car in 5 years) | |
| 1. | ______________________________________________ |
| 2. | ______________________________________________ |
| 3. | ______________________________________________ |
| Long-term 5-10 years+ (set up my own business in 7 years) | |
| 1. | ______________________________________________ |
| 2. | ______________________________________________ |
| 3. | ______________________________________________ |
Now you've got money in your pocket, make sure you use it wisely and think seriously about meeting one of those goals you set. Remember, setting up a direct debit and moving money into a savings account every month, before you get your hands on it, is the easiest way of 'forced saving'. If you don't see it, you don't miss it. So pay yourself first, otherwise you'll never have enough money at the end of the month.
Cash. This is exactly as it sounds - money that sits in a bank account, term deposit or online savings account earning interest. While returns are generally low (typically 5-6% at the very best), they are low risk and give you almost immediate access to your money.
Shares. Purchasing shares means purchasing a share of ownership in a company, and therefore gives you access to the profit made by the company in the form of dividends. Historically, shares have performed better than other types of investment. It is important to note, though, that this is also the most volatile investment type, with the value of your investment fluctuating with the performance of the company or the environment it operates in.
Property. Most of us are familiar with property - they're houses or units we all live in. With enough money you can purchase a property, then lease it, which provides you with income in the form of rent.
Managed Funds. These are funds managed by professionals. Professional fund managers take your money and decide whether it's best to purchase shares or property, or keep the money in cash for you. It can be a good option if you're not financially savvy.Superannuation. This is money that your employer must pay into a separate account - and you can't touch it until you retire. Your employer must contribute at least 9% of your salary to this account. You can also make extra contributions that could really boost your retirement savings.