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8 Money Things 20-Somethings Should Do Once They Get Their First Pay Check


Saturday, April 18, 2015
Just got your first job? Congratulations! 

As a 20-something who recently got your first job, are you also curious about what you should be doing with your very first pay ever?

I bet you are. I've received countless of emails from amazing Filipino professionals who just got the sweet taste of their first ever paycheck - but do not want to experience the bittersweet feeling of losing it all. 

What do you do when you've gotten your first salary but you have no idea what to do with it to make it more valuable in the long run? 

Here are 8 money tips you can start with: 




1. Compute your hourly rate.

Let's say you work 40 hours a week, 4 weeks a month. Your total working hours for the whole month is 160. 

And then you received a salary of P18,000 for the first month you've worked. 

Hourly rate = P18,000 divided by 160 hours
Hourly rate = P112.50 rate per hour 

That P800+ rate for a 3-hour Vikings buffet feast for yourself?

It costs around 7 working hours of your life. 

It makes you think twice about spending your money recklessly, don't you think so?

2. Open your own bank savings account for your emergency fund. 

It's a no-brainer that you need a savings account to secure your rainy day fund for you. 

Why do you need a rainy day fund?

Job stability is a myth, my friend. Therefore, you have to be prepared - you may lose your job at anytime, but you can't lose your bills being delivered to your house every month. 

Keep in mind that your savings account is different from your payroll account, though. A payroll account is for withdrawing. A personal savings account is for saving. 

(READ: Here are five Philippine banks with the lowest initial deposit requirement.)

3. Set up a saving and spending plan that you can realistically follow. 

A budget is your financial map. Without it, you'll just get lost in a world of depleted bank accounts, useless spur-of-the-moment purchases and lots and lots of ugly debt. 

Start setting up a budget today. 


4. Enroll in an automatic savings system for your bank account. 

This way, every payday, you can instruct your payroll account to take at least 5% of your pay and transfer it to your savings account. 

The ideal is 20%, but let's face it, since we're just getting started, 5% seems more realistic. 

5. Secure basic health protection. 

We're getting old. And a part of this means that we're not covered by our parents' Philhealth protection anymore. 

Better get a Philhealth plan for yourself now. It's only P200/month! 

6. Find out if you need income protection. 

Life insurance. 

If you have 2D = debts and/or dependents, you need life insurance to financially protect your family even when you're already gone.


1st, Life insurance isn't supposed to make you poor. You're only supposed to contribute the amount that you can conveniently afford. 

2nd, You get life insurance so that your dependents are still financially protected in case you're gone. It's not meant to insure your life (that's impossible), it's meant to replace your income in the event that you pass away and can't provide for your dependents anymore. 

3rd, There's already a life insurance product that has an investment component. Gone are the days when life insurance is just about solving the problem of "dying too young".

7. Before investing in anything, understand about the basic concept of it first. 

It's saddening, but I receive emails that tell me:

"Lianne, I already signed this... I already paid for this.. BUT I don't really quite understand what they were talking about..." 

"Lianne, I already met with someone. They say it's a good deal. I signed it, but I don't know what makes it a good deal?"

"Lianne, I have my contract na. But now that I have questions, my advisor/agent/consultant isn't replying to me." 

My friend. Please. Do yourself a favor: 

If you don't understand, don't shake his hand! 

It's YOUR money. It's YOUR responsibility to find out what happens to it. 

(Here are 5 important investing points that you should definitely know about)

If it still isn't clear, shoot me an email at liannemarthamlaroya@gmail.com or text me at 0906 243 5059 and let's discuss. 

8. Once you undertand the basics of investing, start investing as soon as possible! 

Simply put, the younger you invest, the higher your investment can be - in the long run. 

My 15-year old brother started investing early. 



BONUS TIP: Don't forget to give back to the community. It can be as simple as having a "Pondo ng Pinoy" bottle and giving it to your local church every month. :) 

Following all these 8 money tips ensure that you are the one who's in control of your money.

As I say, if you don't control your money, this means that your money controls you.

And you don't want that, do you?

 

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Get a FREE life insurance/investment (VUL) proposal - personalized and made especially for you! Simply fill out this form. 

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Want to get started managing your money/budgeting/investing? 


anc on the money interview
Email: liannemarthamlaroya@gmail.com
Twitter: @MsLianneLaroya
Mobile: 0906 243 5059

And we can even meet personally for a FREE financial planning session! Let me know so we can finalize a schedule that works.

If you find this post helpful, please SHARE it to your friends. Who knows, you might help them by educating them. :) Thank you, wonderful people!

Live wisely,
Lianne