I am a first jobber: 3 steps I took to secure my financial future

Starting my career was an exciting adventure filled with new opportunities, responsibilities and a sense of independence. Earning my first paycheck was thrilling but transitioning from student to professional life was a steep learning curve with a host of financial challenges. Let me share some steps I took to manage my personal finances for long-term stability and growth.

Budgeting expenses to live within my means

One of the first mistakes I made was not creating a budget. Unexpected expenses – such as buying work attire, taxi rides, and after-work gatherings with colleagues – often took me by surprise. Without a budget, I found myself losing track of my spending and living paycheck to paycheck.

With a budget, I can now track my income, expenses and savings. Over time, I also accumulated six months’ worth of expenses as emergency funds. I now feel more secure about my finances especially if I lose my job unexpectedly.

Managing debt

Like many of my peers, I graduated with a student loan that requires regular repayments. Deferring payments can easily lead to increased debt from accumulated interest. It was essential for me to understand my repayment options and actively budget to lower my loan commitment. Whenever possible, I make extra payments to reduce my principal balance so that I can pay off my student loan more quickly.

Balancing loan payments with monthly living expenses can be tough. There is always the temptation to use credit cards for managing short-term cash flow – whether for dining out, shopping or to go on a holiday.

Credit cards offer convenience and the opportunity to build creditworthiness, but can also lead to significant debt if not managed wisely. It is important to understand how credit card interest rates work before rolling over debt.

I aim to spend within my budget and only charge what I can afford to pay off within the billing cycle.

Planning for the future

I have come to realise that managing my finances requires a different set of skills from what I learnt in school. Understanding investing, insurance and retirement planning concepts can be overwhelming for a beginner. I research and read as much as I can and spoke to a financial advisor for personalised advice.

For now, my personal financial plan covers three main areas:

• Insurance that covers large medical bills from critical illness, as well as death and total permanent disability.
• Grow additional savings beyond my emergency fund in a diversified investment portfolio for the down payment to buy my first home.
• Retirement planning so that I choose when I want to retire. This includes long-term investments as well as making use of the Supplementary Retirement Scheme (SRS)¹ to reduce my tax liability over the years.

I am aware my plan will evolve over time as would my income and needs. This is why I make sure to set aside time for myself to review my financial plan every year.

The financial hurdles faced by young adults are very real and can be difficult to navigate without proper planning and discipline. However, I believe that with experience and a commitment to financial planning, these challenges can be overcome. By taking action now, I can pave the way to a more secure financial future for myself.

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