#FinanceTips #MoneyManagement #InvestingAdvice
Hey everyone! π So, I recently secured a full-time job at the company where I did my internship, and now I’m making around 2400 euros a month, tax-free. On top of that, I have a side business bringing in some extra cash each month. With all this newfound income, I want to make sure I’m managing it wisely and setting myself up for financial success as I enter adulthood.
Here are a few things I’m considering – would love to hear your thoughts and recommendations:
– Budgeting: Creating a monthly budget to track expenses and save for future goals
– Investing: Diversifying my investments beyond just stocks
– Learning: Reading books or following resources to improve my financial literacy
I’m based in the Netherlands, so if anyone has country-specific tips, please share! Let’s chat and help each other navigate this exciting but sometimes overwhelming financial journey. ππΈ
First off great job recognizing you are going to need a plan. Most people don’t and I’ll admit I didn’t at that age.
Definitely a budget helps to visualize your expenses out vs income in and I don’t know much about the Euro market as I’m assuming you’re in Europe since you’re paid in euros. But we’ll assume it’s similar to North America.
Dave Ramsey is great for money saving tips. He’s all over social media but granted some of his advice is dated to more of a previous generation and not so much current era.
Dave does talk about having 3-6 months of expenses saved in case something happens and when you’ve got that done you can flow into his next step of what he calls the Baby Steps. The advantage for you is you’ll avoid some of these steps as you’re Newans not in debt like most of clients are.
Look for some financial literature tailored to your country. There will be tax and retirement implications specific to your country.
If you do go looking for books I would suggest looking for books that have reprints or multiple editions and avoid books written by financial gurus who have their face on the cover. Its not that their advice is terrible, but you can usually do better if you are willing to find the denser books that have stood the test of time.
As for the generic advice. Save money. Live below your means. Always have an emergency fund and money for retirement. Get plenty of sleep, diet, and exercise. Take care of yourself so you can take care of your priorities.
Here some of my 2 cents
– HYSA, open Wise bank account in EU with 3-4% interest or go with stocks jar 10+% interest with some risk.
– Don’t think about big purchases (house, car, etc) with your current wage increase, hold your urge
– One of my best paying investment in early age is invest in my own education, so I would suggest you find online course or degree to get yourself certification
– 2.4K might seem sufficient now, but might not in later stage of life
– Books I would suggest the Tim Ferriss books, very good for self experiment
Always be applying for new jobs. Companies tend to pay less the longer you work for them. I’ve been with the same company for 10 years, received 3 promotions while increasing my pay by about 60k with them. I’ve learned the guy they hired to fill my last position is currently making 10k more than me.
I would check on that βtax freeβ.
Nothing in this world is tax free.