For any young professional early on in a successful recruitment career, that sudden influx of cash can be hard to manage.
Whether you’ve not had to handle money before or you’re just not used to a fluctuating monthly income, those first few paydays can run through your hands like water if you’re not careful.
So, how can you go about setting yourself up for long-term financial success as a recruiter working on commission? Get your budget, savings, and finances sorted up-front, and you’ll soon be reaping the rewards of all that hard-earned cash. No-one likes looking at single digits in their bank balance at the end of the month.
Here are some of the things you might want to consider to help get your money on the right track:
Get yourself a budgeting method. If you want to keep all your money to yourself, a budget is the best thing to start with when you begin earning serious cash. There is a range of budgets out there, including zero-based budgeting, but many find the 50/20/30 rule to be an excellent place to start. 50% of your base income should go to needs, 30% on wants, and 20% in savings every month.
Any extra commission you earn can be portioned out as you want, but get those foundations down, and you’re off to a great start.
Create some savings goals
Aimless savings can quickly lead to your money vanishing elsewhere. Knowing exactly what you’re saving for is a far better way to manage your money. Maybe you want to retire early – so how much cash will you need in your pension? Perhaps you want to buy a house – so how much is a deposit and all the fees? Get some goals together, and that recruitment commission will have a place to go, instead of sitting in your bank account and tempting you.
Pay off your debts ASAP
From car finance to credit cards, many young professionals have debt. But the sooner you cover those debts, the more money you’ll have for all your goals. Aim to pay off any looming debts or finance amounts as soon as you can, and maybe even consider throwing extra commission at them. Future you will thank you, and you won’t be handing money over to someone else when it could be going to far better use elsewhere.
Consider long-term savings and investments
Once you’ve planned out your savings goals, you might want to consider a LISA or high-yield savings account to help them along the way. Opening these accounts and depositing a set amount every month by standing order means the money is tucked away before you even see it, leaving your house deposit fund or blowout holiday fund building nicely in the background. You could also consider giving investments a whirl with a small portion of your income, to make your commission potentially go even further. By getting your money under control at the start of your career, you can set yourself up for success for years to come.
Focus on budgeting, saving, and paying off debts, and you’ll soon find that you aren’t left penniless by payday. As with any habit, money management takes practice – but get it right now, and it will be benefitting you for years to come.