The Money Moves to Make After Landing Your First Job
Happy Money Monday Tandem fans. You just got your first REAL job. CONGRATS! Now how do you handle that whole grownup money thingy? Don’t worry, we’ve got you covered. Over at TwoCents, Kristin Wong, has a nice and easy money checklist for you to follow after you’ve gotten the firm handshake. Here are a few of her tips.
Start Saving for Retirement
When you get your first job, you should definitely inquire about the retirement benefits. Many employers will match employee’s contributions to a 401(k). We’ve said it before, but this is free money. Sure, retirement might seem far off, but consider how much you can save if you invest just $50 a month. The sooner you get started, the easier saving will be.
Read our beginner’s guide to starting your first 401(k). Here’s the gist of it:
- Find out about your company’s options.
- Learn how to properly balance your investments.
- Pick an investment fund from their menu.
- Decide how much to invest.
- Watch out for fees.
If your employer doesn’t offer a 401(k), consider opening an individual retirement account (IRA) on your own. Forbes contributor Bill Harris recommends a Roth IRA:
Roth IRAs are perfect for young adults…Just push yourself to start saving. Many discount brokerages and fund companies will help you save by setting up an automatic system that siphons money from a checking account into your Roth IRA every month or quarter.
To read more about Roth IRAs, check out our post on how to save for an emergency fund and retirement using a Roth IRA. The point is, you just want to make sure you start thinking about saving for retirement when you get your first job—especially because your employer might match some of your money.
Learn Your Employee Benefits
Aside from retirement, you should take the time to learn all your other benefits as an employee. Here are some potential job benefits and perks you want to find out about:
- Health plan options
- Life insurance options
- Corporate discounts
- Paid time off
- Tuition assistance
Check out the rest of the article, here.