Life lessons are best learned from experiences, and the same goes for some financial lessons. Your parents and teachers will teach you ways of handling money to ensure you get the most out of them. However, there are some lessons that you will not learn until you land that first job. These lessons will guide you on your road to financial stability and success. Take a look at some money lessons that you will learn from your first job.
1. You Will Not Take Home the Full Amount of Your Earnings
The amount of your salary that gets to reach home will surprise you. The amount you will take home will be less than your hourly wages because of federal taxes. Tax obligations may not be new to you, but the amount that the tax man deducts from your salary will take away the excitement of getting your first paycheck.
2. You Realize The True Cost of Commodities
When you hear parents or other people complaining of harsh economic times, it does not occur to you the struggle they go through to put food on the table. Living in your parents’ home where you get fed stops you from realising the true cost of commodities. However, as soon as you start working and feeding yourself, you will be surprised by the cost of goods. You will learn how to budget and track how you use your money.
3. Job Benefits Are Not Always Attractive
Before we start working, we imagine the great jobs with numerous benefits that will make the workplace enjoyable and our job interesting. However, the reality is different as many employers experience economic problems and can’t afford to offer such attractive benefits. To maintain financial stability, an employer opts to reduce or totally ignore some benefits like paid employee health insurance. Reduction of these benefits will force you to rethink your retirement savings.
4. The Lunches and Drinks You Buy Every Day Make a Big Difference
While you are in college, you can spend up to $100 a week on food and beverages that you need and not feel a pinch. When you land your first job, you’ll pay for your lunch and drinks. The money you spend every day while eating out with work mates will count, in the long run. For instance, you may spend $5 daily and in a month you will have spent $150. Since the first job is usually modest spending $150 a month will strain your budget.
5. Salary Negotiation With Employers
Employers are not always willing to give up their money unless you ask for it. In an interview for your first job, you may feel that you are entitled to a higher salary than what your employer has put on the table. You have to be bright to negotiate terms and get a better pay. If you fail to do so, no employer will willingly give you more money.
A first job will teach you lessons that will shape your financial decisions, as well as your career. The lessons learned at you first job will help you make better decisions in the future.