There’s nothing that quite beats that feeling of your first proper, professional pay check. The possibilities seem endless, and can make $1,000 seem like a million.
Reality does soon kick in though and for much of your professional life, your pay will end up being spent on homes, travel, day-to-day life and even family. Then of course there’s saving.
When it comes to saving, it’s never to early to start and you’ll find a great number of methods in which you can do so.
If you’re just starting your professional life, it’s always worth starting to save, accumulate and have a nice lump sum further down the line. Below you’ll find some of the best ways to save money each month…
Certificate of Deposit
CDs have long been the first step for many to start saving money and that still stands today.
While you won’t necessarily get the same rates as a number of years ago, they’re still really useful and incredibly simple to use.
They work by offering you a percentage on the amount you deposit with some of the best CD rates reaching around 2.8% APY these days.
They’re hassle free and you’ll find dozens of the market all with different terms, so it’s never difficult to find the right sort of account for you.
In many cases you might need to make a minimum deposit, sometimes around $2,000 so you may need to save a little in your normal banking account before you can open one up and start saving and accumulating this way.
Banks such as Synchrony Bank, CIT Bank and Ally Bank are among the most popular these days, the latter having no minimum deposit and flexible terms from three months right up to five years.
Invest In Stocks & Shares
Many people look to invest these days and there are many ways in which you can do so.
For new professionals it’s always good to start small and start investing more freely and more calculated as you gain knowledge of markets.
A good way to start is with spare change investment apps, which essentially link up to your banking account and every time you make a payment that comes out of your account, the spare change all will round your payment up to the nearest dollar and invest the remainder in a business.
It’s hassle free investing and while it won’t make you millions, it’s a good way to see a return on spare change.
For example, if you were to buy some groceries using your debit card and spent $10.67, the app would round up to $11 and take the 33 cents and invest them.
As well as this, you can of course be more serious in your investments, particularly if you do have a good portion of expendable income. To do this it’s important to follow the experts, keep abreast of the latest trends and have an understanding as to whether you want to see a good return in the short term or long term.
Of course, you also need to be aware that there’s every chance your investments may not provide profit too.
Start Saving For Property
Naturally, you aren’t going to be able to buy a house overnight, but saving in order to buy property can be hugely valuable.
Property is always worthwhile investing in and building a portfolio throughout your career can be a brilliant way of bringing in a significant amount of income much further down the line when it comes to retirement.
It’s a long, lengthy and stressful process, particularly if you’re looking to rent out property but it’s fully worthwhile and can make you a fortune.
There are ways in which you can invest in property without having a large amount of money, with some of the more inventive ways including:
- Simply save aggressively: Only spend when you need to and cut costs where necessary to get on the property ladder.
- Borrow against your own home: If you’re already on the property ladder, remortgaging can be a good way to get the capital to invest elsewhere.
- Rent rooms in your home: If you’re a homeowner, there’s nothing wrong with letting out rooms in your property. This can be done in a number of ways dependent on if you want a permanent resident or would prefer to rent with the likes of AirBnB.
Of course, it all takes some saving in the first place, but if you’re committed to a long-term goal, starting saving with your first paycheck to invest in property will almost always be fruitful.