Watch out for lifestyle creep: Making the most of your first real paycheck

Now that you’ve graduated college and you’re in a job that pays a living wage — it’s easy to let your lifestyle costs creep a bit as you can now afford the “finer things” in life. But I want you to tap the brakes just a moment and think about your long-term financial needs.

In today’s episode of Your Money Minute, I want to share some thoughts on avoiding “lifestyle creep with your first job as a college grad or new professional. Yes, you are making money now and it may feel like you can write a check for just about anything. The reality is, with big money comes big responsibilities — and it’s important to make sure you live within your means.

To avoid “lifestyle creep”, it’s important that you have a budget to work with. I also recommend you start considering retirement. I know it seems a million miles away, but it’s important you know your options and start saving early. And speaking of savings, do make sure you’re building an emergency savings fund (aka a Murphy’s Law account.) Making sure your fixed expenses stay as low as possible, you’ll avoid going into debt or running out of money when you really, really need it the most.

Don’t forget to subscribe to my YouTube channel for the latest episodes of Your Money Minute, a series on making the most of your money and life posted each and every weekday.