Congratulations on your first job! Your years of studying finally led to this exciting moment in life. The beginning of your professional journey also comes with another exciting milestone: your first paycheck. While it may be tempting to splurge, choosing to make wise financial decisions early can set the tone for how you handle your finances moving forward. Here are some practical tips from CIMB Bank Philippines, the most awarded digital-only commercial bank in the country, on how you can manage your first salary effectively:
Start with creating a budget
Raring to treat your family to a meal with your first paycheck? Before spending your money, try to see first how far it can go. Create a budget by listing all your expenses, such as rent, utilities, transportation, and food. Allocate a portion of your salary to each category and track your spending to avoid unnecessary debt. This helps you determine the amount you can safely use for the fun things in life.
Build your own emergency fund Set aside a portion of your salary in case of emergencies. Consider your comfort level and determine how much of a safety net you need to feel financially secure. If the standard three- to six-month emergency fund works for you, proceed with that. But if your life obligations still make you feel vulnerable, consider increasing your emergency fund target.
Store your money safely and securely
Setting aside part of your salary for your savings can be fulfilling in the long run, and with the help of technology, many banks have gone digital, which makes saving money easier and even more convenient. You don’t even have to step into a brick-and-mortar branch anymore, as digital-only banks like CIMB Bank PH allow you to conveniently open an account and do your transactions all within their mobile app. Whether it’s to help you save for a long-term financial goal or big-ticket purchase, a reliable savings account like CIMB’s Fast Plus and UpSave savings accounts allow you to easily manage your money while offering you better interest rates than most banks. For instance, until the end of the month, CIMB customers can enjoy up to 15% per annum interest through the Red Hot Promo.
Opening a CIMB savings account is also simple and easy on the CIMB app, which takes less than 10 minutes. There also is no minimum deposit required, so it is easier for you to get started on saving money towards your goals. If you’re an existing fully verified GCash user, you can also open a GSave account and link it to the CIMB mobile app for easier financial management. This also gives you access to the full suite of CIMB products offered on the CIMB mobile app.
Starting your financial journey on the right foot can set the foundation for a more secure and prosperous future. Through these tips, you can make your salary work for you and establish healthy financial habits that may benefit you for years to come.
To know more about how you can bank with ease with CIMB, visit cimbbank.com.ph