5 Tips To Maximize Your Income in Your First Job
Written by
Sean Bryant
Edited by
Rebekah Evans
Commitment to Our Readers
GOBankingRates' editorial team is committed to bringing you unbiased reviews and information. We use data-driven methodologies to evaluate financial products and services - our reviews and ratings are not influenced by advertisers. You can read more about our editorial guidelines and our products and services review methodology.
20 Years
Helping You Live Richer
Reviewed
by Experts
Trusted by
Millions of Readers
Starting your first job is an exciting time. It likely marks the start of living on your own and supporting yourself. With obligations like rent and living expenses, you may be looking for tips for making the most of your paychecks and keeping more money in your pocket. We’ve got you covered. We’ve compiled a list of our top tips to help you maximize your income from your first job.
Also here are the best first jobs for a secure financial future.
Make a Budget
We get it. You’re working hard and you want to spend your money. Overspending is a slippery slope to depleting your bank account, though. Creating a budget is an easy way to make sure you are making the most of your income. A budget will help you manage your income and ensure you put enough aside for necessary expenses and have income left over for the future and the things you want.
Start Saving Early
It’s never too early to start saving for the future, even with an entry-level salary. By putting more of your paycheck towards savings, you can earn passive income without working for it.
Consider a high-yield savings account to take advantage of attractive interest rates. You can even automate your deposits based on a set amount from your budget, so you don’t have to think about it.
If your job offers retirement account options like a 401(k), consider putting a percentage of your income into one. These accounts are great for maximizing your retirement income, but they can also lower your taxable income and help you keep more money in your pocket instead of handing it over to the IRS.
Invest
Piggybacking off the saving tip, consider opening a brokerage account to invest your income in the market to earn even more money while you sleep. There are a lot of online platforms that make it easy to set up an account and start investing. Be cautious only to invest as much as your budget allows so you don’t overextend yourself if an investment goes south.
Look Into Overtime or Bonuses
Let’s not forget that your employer may offer ways for you to make more money, like overtime or bonuses. If you’re an hourly worker, inquire with your boss if there are any overtime opportunities. If your employer offers bonuses, ensure you understand the requirements for receiving one so you can spend the year focusing on hitting your metrics.
Take Advantage of Credit
You may qualify for credit cards now that you have a steady paycheck. Despite being easy ways to rack up unnecessary debt, they are also an option to increase your income. There are many cards offering attractive cash-back amounts on purchases. This helps reduce how much things will cost, putting more of your paycheck back in your pocket. Be careful, though — pay your balance on time to avoid costly interest that can eat into your hard-earned income.
More From GOBankingRates
