By
Credit.com
Entering the real world is exciting. For young professionals this
often means getting your first career-track job, moving into your own
place and taking full control of your finances.
While everyone wants to get started on the right foot, there are some
common mistakes young professionals make that can have long-lasting
impact.
Figuring It Out Later
This is a time in your life when you may find yourself making many big decisions in a small amount of time.
Don’t say yes and figure it out later. Before you sign a lease or mortgage, determine whether you can afford it.
The easiest way to do this is to
create a budget.
You may think you need to wait a while until your
expenses “normalize” since when you first move into a place, there can
be one-time costs like furniture and security deposits.
But if you wait a few months, you may find yourself already in some serious debt.
Do some research and make a budget immediately.
Then adjust your budget when you see how much money you are bringing home and how much you are really spending.
It’s best to start out tracking your spending right away, instead of playing catch-up later.
Assuming You Will Make More
You may be disappointed by your first salary. You may work in an industry where big bonuses are normal.
Regardless, plan your finances around the salary you are guaranteed
right now. This gives you the freedom to make choices in the future.
If you are living beyond your means now, that raise or bonus will only go to paying off debts.
If you budget for your current salary, you can use
that raise or bonus to boost your emergency fund, increase your
retirement savings, or treat yourself.
Don’t spend your future self into a corner.
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