5 Financial Moves You Need to Make Now!
There are some financial steps that you need to take right now to help ensure your financial future as a new teacher. As educators, we don’t make as much money as we deserve. And, unless you plan on living at home with your parents for the rest of your life, then, you need to be sure to manage your money wisely. The following are some things that you need to do to ensure that you have a great financial future.
5 wise financial moves for new teachers include:
- Creating a realistic budget
- Purchasing whole life insurance
- Investing in Stocks
- Avoiding Student Loan Debt
- Creating new streams of income
Budget
You probably guessed this one already, but the first thing you will need to do is create a functional budget. Currently, I live in Mississippi where we only get paid once per month. And, money can get tight especially that last week before pay day. But, no matter what state you work in, you will need to create a realistic budget for yourself.
You will have to keep up with how much money you make. You will need to know how much money you bring home, and most importantly, you will need to know what your expenses are.
Besides, what good is working if you can’t purchase some of the things that you want? So, you will want to set aside money for the things that you want. Allot some of your money for saving and some for entertainment. If in the first year or two you aren’t able to save much money, that is okay. Just be sure that you start saving as soon as possible. Don’t keep putting it off. If you do, you’ll stop one day and realize that half of your teaching career is over, and you haven’t save any money.
Quick recap: Budget, budget, budget. Put money aside for your saving. But, remember to allow yourself some money for fun and entertainment. Failing to plan is planning to fail.
Here’s my guilty confession: When I first started teaching and for several years afterwards, I was guilty of not keeping up with my money the way I should have. I did not check my checking account often. My reasoning was that I was only paid once a month. I put the money in my account once a month. I paid my bills once a month. I checked my account the day before payday and the day of payday. I was budgeting, but I wasn’t really keeping track of my money.
There were things that I bought that weren’t in the budget. Those little indulgences wreaked havoc on my budget. Sometimes, they would set me back for a whole month or two.
You have to keep up with where your money is, where your money’s going, and what your money’s doing for you. Make sure you have a good way of tracking your money.
Invest in Whole Life Insurance
Another key financial move that you need to make right now is investing in whole life insurance. Life insurance will probably be offered at your job. Be sure to sign up for it. Most importantly, get your own personal life insurance. This should be whole life insurance. The reason you need to make sure that you get whole life insurance is because whole life insurance earns cash value. You can borrow against the cash value that your life insurance gains later.
Yes, whole life insurance does cost more than term life insurance. However, it is an investment that you are going to want to make. The cash value that you earn from your whole life insurance can be used to purchase a car or that new home you’ve been dreaming about.
Quick recap: Get whole life insurance that builds cash value. You can later borrow against that cash value.
Invest Your Money
One of the things that I wish I had known to do earlier in my teaching career was to invest my money. As a new professional, you should start investing your money.
Don’t just make your money. Don’t just stick your money in the bank and wait years for it to grow. Don’t just spend your money. Invest your money. Do it NOW!
If you’re a veteran teacher and you made the mistake of not investing earlier, then it’s never too late to invest. Invest your money. Depending on what stage of your life you are in and what stage of your career you’re in, you will need to decide if you want to make safe investments or if you want to take some risks with your money.
If you are an investing newbie and you want to keep things simple, you can use apps like Robinhood, Cashapp, or Acorn. If you want to really get serious about your investing, you will want to get a financial advisor to help you with the investing process.
Both Cashapp and Acorn have Round-up Programs where the money you spend is rounded up to the nearest dollar and saved for you. These programs offer simple ways for you to save your money.
Quick recap: Invest your money. This will help to ensure that your money works for you.
Avoid Student Loan Debt
I know. It may be too late to tell you this one, but I have to say it anyway. Avoid student loan debt!
If you don’t need those student loans, don’t get them. They can adversely affect your credit score for years. They can also impact your purchasing power for those big-ticket items like a house.
Plus, it can be difficult to pay them back. So, save yourself some heartache. Apply for scholarships. Apply for grants. Do whatever you have to do so that you don’t get sucked into the student loan drain hole.
Quick recap: Don’t borrow unless you have too. If you borrow, borrow responsibly.
Create Other Streams of Income
Think beyond teaching. As I said earlier in this article, teaching is not one of the best paying jobs. So, you may want to consider starting some type of side hustle to give you the added income that you want.
I am fortunate enough to be a nurse as well as a teacher. And, during the summer months and holidays when school is out, I often work another job part-time. Those extra hours help me to pay down debt and prepare for the upcoming Christmas holiday.
Not everyone can have two careers, but if you are creative, you can come up with your own side hustle. You can join websites like Teachers Pay Teachers where you can sell your lesson plans. You can also start a blog or create an eBook to sell. If none of these things sound like you, then there are other jobs that you can try.
Quick recap: Create streams of income other than your regular job.
Yes, you can survive off of a teacher’s salary. It is possible to retire and still have a decent income coming in. The first step to doing that is to be financially prepare. So, start now planning your financial future the right way.
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