Starting a Career
People at this Age Often Say to Themselves:
If I have any money left at the end of the month, I would save.
Subconsciously, you tend to spend small amounts of money rather than save. Why is it so? Because saving delays the pleasure of spending money. This is why, it is much more reasonable to make “Pay Yourself First” contributions to an investment or a savings product depending on your goal and spend the rest after that rather than hoping not to spend all your resources.
If necessary, I will take out a loan.
You can end up in a situation in which you urgently need funds, but due to your financial standing you are not eligible for a bank loan. That is why it is always a good idea to have your own savings equal to 3–6 monthly salaries. You will always be able to use this amount in case of emergency situations.
What You Must Do?
Save Small Amounts Regularly
One of the most important and easy things you can do for your future is to save regularly according to schedule:
File a record in your name in a fund to which you can contribute an amount from your monthly income regularly. Put it on the to-do list, just like the payment of your electricity and telephone bills.
Determine an amount you will put aside. Try to contribute about 10% of your income. In the beginning, the amounts you will save will be smaller but they will increase in the future together with your income.
Set up an automatic transfer from the account your monthly salary is credited into.
Insure Your Life and Health
If you are now starting out on your professional career and have no savings, you run the risk of experiencing serious financial troubles in case of unexpected events which threaten your health.
The more active your life is, the higher the probability of such situations. Be prepared all the time, so that you do not threaten your financial situation and that of your relatives due to lack of life insurance.
Choose a Universal Pension Fund Where an Amount from Each Paycheck Will Be Transfered for a Second Pension
Do you know that all people born after 31.12.1959 make mandatory Universal Pension Fund contributions for a “second pension”? The funds saved in this fund are personal, inheritable and have a direct impact on the amount of your “second pension”.
Some important things you should have in mind and do:
- If you have just started your first job and you have just started paying pension contributions, you should choose a Universal Pension Fund within 3 months. If you fail to do this within the deadline, you will be assigned to one of the registered pension funds in Bulgaria at random.
- If you have chosen a Universal Pension Fund, you can exercise your right to choose again. In order for you to do this, at least a year must have passed from your previous choice and at least two years from your initial choice of a pension fund.
- Make sure that the company managing your money for a “second pension” is a reliable partner. This is important in terms of your funds security, safe keeping and management.