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How to Not Spend More Than You're Earning

Learn how to handle your money responsibly when you first start full time work.

Posted on: June 28, 2016

Earning and Saving

As you ascend into adulthood, you go through many stages of wealth. First it’s finally seeing that Centrelink payment pop up in your bank fortnightly as a poor student. Then you begin the casual working life (most likely in the dreaded retail or hospitality scene). Next thing you know, graduation has passed you by and a full time job is on the horizon.

It gets difficult as you begin to lose sight of your once uni student budget as the cash begins to flow in. What you need to always remember, however, is to not consume more than you earn.

Not only will this set you up for a lifetime of never being able to save, but also you will never be able to crack the savings requirements to be approved for a potential loan.

Cool your jets big spender and learn a thing or two about your never ending lifestyle inflation.

Cash money

In most cases, if you are working a casual job towards the end of your chosen schooling, you will prepare for the transition into fulltime working life. That first pay cheque will send most people’s heads into a spin of all the things you could buy especially when you may still be earning two pay cheques.

Hanging onto that retail job discount for a few more months by only working one shift a week will have you handing that bank card over more often than you think.

Learn to get a grip of all that money and set up a savings account to work towards something more than a new dress or fancier dining repertoire.

The spend-save ratio

Over spending is a fault many of us struggle to overcome. As you earn more money, it’s only human instinct to spend more. Ending the pay cycle on the same dwindled account amount is a common occurrence for many new to the fulltime workforce.

When in a higher pay bracket, the spending ratio may still be the same as the lust for new and shiny things grows greater. If you spend 90% of your pay, and save 10%, the spend-save ration will never be in your favour. By remembering that at some point in the not too distant future you may want to upgrade your car, a loan is most likely a sure thing. Ensure that you have enough savings in your account to justify a loan and that thing you’ve been working so hard towards will finally be yours.

Don't get too over your head

Just remember: you don’t need to spend your money for the sake of spending money. Invest in a future rather than an ‘it’ item and you will surely reap the benefits. The age old saying ‘if you fail to plan, you plan to fail’ is actually so relevant in the budgeting sense. Always set a goal and save the money you have now, as life is full of uncertainties. You wouldn’t wish upon your worst enemy to have to buy a new car battery after a weekend spending spree only to be left to live off $30 until next pay day.

Be responsible with your spending and a reward will be just around the corner.

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