It’s already an amazing accomplishment when you complete the requirements to earn your Ph.D.
It’s even more of an accomplishment when you’re the first person in your family to achieve this goal.
You’re raising the bar for the future generations, and this is a positive example to set.
However, it’s important to acknowledge the challenges with this new experience. This is especially true for your financial life.
Chances are that you are going to be living in a very different financial bracket than you did in your youth. Many people who escape poverty have no guide to keep their hard earned wealth. When you’re earning more as someone with a doctorate, there are some things that people don’t necessarily teach you. Consider these challenges and how you can deal with them.
You’re used to living paycheck to paycheck
Statistics suggest that at least 70% of Americans live paycheck to paycheck. For many people, they do this because they’re trying to make ends meet. Truthfully, this is a dangerous habit. If you have an emergency situation and need $1,000, you’ll be completely in the hole.
In order to transition out of this lifestyle, start small. Put aside 10% of your paycheck, place it in a savings account and leave it alone. If you can do more, that’s even better. If you can’t do 10%, start with a few dollars from each paycheck. B
You don’t know how to manage your money
Financial management is essential. At the very basic level, it’s important to abide by a budget. Make sure that every dollar is accounted for. As you master the ability to stick to a budget, begin looking into individual and entity wealth management. You can learn more about how to eliminate any outstanding debts. Additionally, you’ll get financial resources to help you save money and plan for the future.
You don’t know where to start with investments
If no one taught you the importance of investing, you wouldn’t know to develop a plan. Truthfully, investing isn’t something you’ll want to procrastinate with. The sooner you do it, the better off you’ll be.
Learn more about concepts like compound interest and mutual funds. Take courses that teach you how to safely invest your money in the stock market. Purchase some real estate and turn it into a rental property. Develop various streams of income so that you can live off of your investments in the future.
If you are in a position where you’re earning more money, it’s always wise to implement these practices. Once you remain consistent with your efforts, your money will be able to solidify your legacy. You’ll also be able to make decisions from a place a financial abundance instead of lack.
other valuable tips:
Image Credit: Pixabay
end of post … please share it!