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The Young Peoples’ Guide to Managing Your Money

Chances are that if you’re embarking on your first job, you won’t be earning loads to start with and managing your money efficiently will go a long way to determine what you can and can’t afford.

If you still live at home, then your living costs are likely to be quite a bit lower than if you’ve already moved out and are in rented accommodation.  If this is the case, you might find that you seem fairly well off when you first start to work, but remember as you move away from your parents and become liable for many of the housing and living costs, you will end up having less to spend on yourself.  If you do find that you seem to have quite a bit of spare money, instead of blowing it on clothes, gadgets and going out, it would be a good idea to use some of that money to start making provisions for your future.  Getting into the habit of doing this now might mean that you’re not in for a rude awakening a few years down the line when it becomes an absolute necessity.

You probably already have a current account – this is where you will receive your salary from your employer.  However, it would be a good idea to also open a savings account so that if you do find yourself with some money left over at the end of the month, you can shift it into your savings account rather than leaving it in with your current month’s pay.  This will mean that you will get used to living within your means and also used to saving your spare money rather than blowing it on items that aren’t really necessary.  Who knows, after a year of this, you might find that you’ve saved quite a tidy sum that you can use towards a holiday or a car.

Getting into the habit of saving money at a young age will stand you in good stead for the future when your living costs are likely to be a lot higher than they are now. 

Even if you’re not still living at home and are responsible for all of your livings costs, with a bit of careful budgeting it may still be possible to save a small amount on a regular basis.  That way, if you should need to move you will be able to meet your moving costs or you will maybe have enough available for a bond on your new accommodation.

At the same time that you’re learning to manage your money, it’s probably worth having a think about Lifestyle Protection Insurance.  Yes, you probably thing this is boring and for old people, but a Lifestyle Protection plan can be a great way of ensuring that your income is protected in the event that you’re made redundant or unable to work due to sickness or accident.  Income Protection Insurance will guarantee you an income of up to 90% of your net salary if you become unemployed due to redundancy or sickness.  This could go a long way towards making sure that you can keep the roof over your head during times of crisis.