It’s Pay Day week for most people. The human instinct tells an employee who gets his or her paycheck right from the accounting department or right from your boss to drink out, pig out, and shop. While many find this necessary especially after a week filled with chaotic traffic, office stress and road accidents, smarter employees would think otherwise.
It may be Pay Day, but oops, the next one does not come after 15 more days. We’ve talked about shopping last Pay Day and we assume you’ve maxed out your credit cards. Banking institutions are now extending their hands on you saying, “Your payment? Your debt?”
In this day and age, it is highly necessary to be financially literate and smart, with higher commodity prices and frequent oil price hikes. You don’t want getting inside another train and hurting yourself, do you?
We’ve got you covered with some leads on where to take your Pay Day goodness and tips on where to spend them, if you are too nagging to take a bite off your salary.
1. Be informed and educated. This blog is not a financial blog that gives you all the information, we just give you the leads. Take time reading through online materials, bank brochures, financial pamphlets and more to give you information on growing your money. Before taking any investment action, know what it is, know how much returns they’re going to give you and know the risks.
Don’t forget to talk to the experts. There are groups today, and some of them may be on your circle, that offer “investment methods” promising great returns, as long as you invest the money in them. This is not a credible and legitimate investment procedure.
2. Keep track of your credit card statements and bank accounts. A credit card is not something that you hand over to the cashier to pay for your items. Because whenever we are inside shopping malls, we lose control of nearly everything. The next day, you’ll find out you’ve maxed out your salary just because of paying for your credit card bills. And you don’t want another set of debts.
3. Invest in products that are cheap and you are familiar with. You are a young professional and being young, as what big bosses think about new hires, does not mean you don’t have the right on money matters. Invest in things that suit your age and expect returns. A risky investment is not advisable for the younger generation.
4. Buy stocks directly from your company. Going back to square one and tip number one, educate and ask yourself, “Is it wise for me to buy stocks from the company I am in?” and gauge your other expenses. Once you buy stocks, you’ll be getting dividends in the form of shares, depending on the performance of the company, depending on each employee’s performance. This is not applicable for all as not all companies have this option.
5. Invest in mutual funds. Find your financial adviser to guide your through the process. This is where talking to experts fall under. Studying this for yourself might be a little confusing with all the figures and graphs, enough to make you refuse this form early on. But with the method of this investment, you’ll regret giving up early. Investing in mutual funds involve putting your money as part of a bigger company’s transactions, say a multinational firm.
As stocks of that company grow through time, your money grows as well and you’ll get returns. Paper trails and documentations provided by your financial adviser are enough to prove the legality of this process. You can always check Stock Market news and updates to keep yourself on track.
Now that we’ve shared some leads on where to take your money, it’s time to get moving. But this is not all, as these tips are helpful for young and starting professionals. Let’s leave the rest of the riskier roads for older people and adults to take.
Are you going out for a party or a drink? Think again. And we did mention about some spending and shopping tips for those who are insistent. The billboards, ads and visuals you see around are enough to take you there, but be careful.
Sources: WikiHow, Forbes, BPI Express Online, MoneyMagpie.com, Reader’s Digest Asia