Nairametrics
  • Home
  • Exclusives
    • Financial Analysis
    • Corporate Stories
    • Interviews
    • Investigations
    • Metrics
  • Markets
    • Cryptos
    • Commodities
    • Equities
      • Dividends
      • Stock Market
    • Fixed Income
    • Market Views
    • Securities
  • Industries
    • Company News
    • Consumer Goods
    • Content Partners
    • Corporate deals
    • Corporate Press Releases
    • Energy
    • Entertainment
    • Financial Services
    • Hospitality & Travel
    • Manufacturing
    • Real Estate and Construction
    • Tech News
  • Economy
    • Get Data
    • Macro-Economic News
    • Research Analysis
  • Business News
  • Financial Literacy
    • Career tips
    • Personal Finance
  • Lifestyle
    • Billionaire Watch
    • Profiles
  • Opinions
    • Blurb
    • Op-Eds
No Result
View All Result
  • Home
  • Exclusives
    • Financial Analysis
    • Corporate Stories
    • Interviews
    • Investigations
    • Metrics
  • Markets
    • Cryptos
    • Commodities
    • Equities
      • Dividends
      • Stock Market
    • Fixed Income
    • Market Views
    • Securities
  • Industries
    • Company News
    • Consumer Goods
    • Content Partners
    • Corporate deals
    • Corporate Press Releases
    • Energy
    • Entertainment
    • Financial Services
    • Hospitality & Travel
    • Manufacturing
    • Real Estate and Construction
    • Tech News
  • Economy
    • Get Data
    • Macro-Economic News
    • Research Analysis
  • Business News
  • Financial Literacy
    • Career tips
    • Personal Finance
  • Lifestyle
    • Billionaire Watch
    • Profiles
  • Opinions
    • Blurb
    • Op-Eds
No Result
View All Result
Nairametrics
No Result
View All Result

What We Did With Our First Salary

Nairametrics by Nairametrics
July 13, 2014
in Uncategorized
What We Did With Our First Salary
Share on FacebookShare on TwitterShare on Linkedin

payslip

I was chatting up with some friends a while back and we got talking about what we did with our very first salary as an executive trainee. The revelations were comical, regrettable and somewhat consoling as we reminisced on how far we have come. Here is some of what we did with our first salary starting with mine.

 

RelatedPosts

What to do when you suddenly hit a jackpot

Business start-ups: Problems and solutions

My first salary was about N17, 000 back in 2002 and I remember I spent a huge chunk of it on clothes, buying drinks for friends and fueling my mother’s car, which I took the work everyday. I also saved N5, 000 in a savings account following the advice of my big cousin. He told me to do that every month, which off course I hardly did after the first month. Since my salary wasn’t that much compared to my peers it was enough guarantee for me to buy clothes on credit. So, I started out with debt.

 

A friend explained his first salary was sent to his Father in the village, as was the custom after which his father returned half of it to him. He recalled having to borrow to get through the next month. He also started out with debt. Another friend who was from a rich family had a different experience. He used part of his first salary to buy the designer office shirts and shoes we all envied back then. He also remembered sending part of it to his girl friend that was still in university. He also spent it on hosting friends and family to celebrate his new job. He started out a spend thrift. The last but not the least said he divided his N35, 000 salary into three parts. He sent one part to his siblings in school, the other to his parents and retained the balance to get by the next month. He had to borrow to get by the next month.

Today, we look back in retrospect and agree we probably should have done things differently. Your first salary is your gateway into your financial independence and a foundation to how financially discipline you become. You have a choice of either making it a bitter experience or a giant step to financial freedom.

 

So, this is what you should do when you get your first salary.

 

Read through your pay slip: Your pay slip is a statement of how your take home pay is arrived at. Understanding, what is in there is a crucial part of financial discipline. In your pay slip you will find things like PAYE (tax deductions), pension deduction, NHF contribution and any other statutory deductions that may be charged to the debit (outflow) of your salary. To the credit (inflow) of your pay slip will be your basic salary and all the allowances due to you. The difference of what is debited to your salary and what is credited is your take home pay. Why is this important? The more you add to the debit side of your salary the lesser your take-home pay. So, you always want to make sure your take home pay is the most you can get out of your total package every month.

 

Open a current account: Most entry-level employees already operate one type of savings account or the other. If you do not have a current account then you need to open one to enable you pay in cheques from third party banks. Current accounts do not pay you interest unlike savings accounts but they open you up to a vast array of financial services that will benefit you as you begin your financial life. Current accounts often require high deposits to open one but surely there are ways around this.

 

Open a CSCS Account: A CSCS Account is an account you open when you want to invest in stocks, bonds or treasury bills. It doesn’t’ cost much to open one and it remains with you forever. You can open one yourself or have your stockbroker do it for you

 

Open a Stockbrokerage Account- A stockbrokerage account is an account you open when you want to invest in stocks by yourself. It is also cheap to open one and requires a minimum deposit depending on the stockbrokers. You can give them a CSCS account if you have one or instruct them to open one for you.

 

Start Investing – No better way to begin spending your money than to start investing a part of it in your future. With your current account and your CSCS account opened, you can invest a portion of your salary in stocks, bonds, treasury bills etc. Trust me, the feeling that comes with ding that is fantastic.

 

Save and keep saving – Part of your first salary should remain in a savings accounts maintained by you. This is where you should keep any money you want to use to fund or part finance your first car, house rent or some of the things that help you start your life journey. This is your first seed.

 

Upkeep – Now that you have started earning your keep you have to fund your upkeep. You want to rely as much less as possible on family to help you get by. You should make sure that whatever is left of your salary after the steps above is enough to feed you and transport you to work everyday.

Related

Tags: Personal FinanceYour Money

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Mega Millions
Hot forex
Cornerstone
Polaris Bank
Access Bank
Bankers Committee
First bank


FCMB




    Business News | Stock Market | Money Market | Cryptos | Financial Literacy | SME |

    Recent News

    • Citigroup says oil prices may crash to $65 by end of 2022 due to recession
    • Nigeria’s stock market closes bearish as market capitalization dips by N110 billion
    • IPOB disowns Peter Obi’s presidential bid, says he was never their member

    Follow us on social media:

    Recent News

    Crude oil, Oil down as China releases fuel reserves, Oil down as China releases fuel reserves

    Citigroup says oil prices may crash to $65 by end of 2022 due to recession

    July 5, 2022
    Bears market

    Nigeria’s stock market closes bearish as market capitalization dips by N110 billion

    July 5, 2022
    • ABOUT US
    • CONTACT US
    • PRODUCTS
    • ANDROID APP
    • iOS APP
    • DISCLAIMER
    • CAREERS
    • PRIVACY POLICY

    © 2022 Nairametrics

    No Result
    View All Result
    • Home
    • Exclusives
      • Financial Analysis
      • Corporate Stories
      • Interviews
      • Investigations
      • Metrics
    • Markets
      • Cryptos
      • Commodities
      • Equities
        • Dividends
        • Stock Market
      • Fixed Income
      • Market Views
      • Securities
    • Industries
      • Company News
      • Consumer Goods
      • Content Partners
      • Corporate deals
      • Corporate Press Releases
      • Energy
      • Entertainment
      • Financial Services
      • Hospitality & Travel
      • Manufacturing
      • Real Estate and Construction
      • Tech News
    • Economy
      • Get Data
      • Macro-Economic News
      • Research Analysis
    • Business News
    • Financial Literacy
      • Career tips
      • Personal Finance
    • Lifestyle
      • Billionaire Watch
      • Profiles
    • Opinions
      • Blurb
      • Op-Eds

    © 2022 Nairametrics

    Social Media Auto Publish Powered By : XYZScripts.com