Landing a first job is often a major milestone for many young people. After years of schooling and job hunting, the first salary brings excitement, independence, and a sense of achievement.
However, financial experts caution that the decisions made during the first years of employment can have a lasting impact on an individual’s financial future.
According to Benjamin Cheruiyot, a financial advisor at Abojani Investment, newly employed individuals should focus on building a strong personal and financial foundation before pursuing ambitious investment opportunities.
- Establish the Basics
For a 25-year-old entering the workforce, Cheruiyot says the first priority should be securing the basic necessities that support a stable and productive lifestyle.
These include obtaining suitable housing, furnishing the living space, acquiring essential kitchenware, purchasing quality electronics and building a wardrobe that meets both professional and casual needs.
- Invest in knowledge and skills
Once the basics are in place, the next step should be investing in personal growth. This includes pursuing additional education, professional certifications, short courses and skills development programmes that can enhance career prospects.
Cheruiyot notes that increasing one’s knowledge and skills is among the most rewarding investments a young professional can make because it improves earning potential over time.
In a competitive job market, continuous learning can open doors to promotions, better-paying jobs and entrepreneurial opportunities.
- Improve the Situation of Parents and Siblings
Beyond personal advancement, young earners are also encouraged to consider the wellbeing of their families. Many young professionals become important sources of support for their parents and siblings soon after securing employment.
Cheruiyot advises that one of the most meaningful contributions a young worker can make is helping parents access medical coverage. As people age, healthcare needs tend to increase, making medical insurance an important safeguard against unexpected expenses.
Ensuring that parents are enrolled in a health insurance scheme can help protect family finances from the burden of recurring medical bills. Similarly, supporting younger siblings through school or college can create opportunities for long-term economic advancement within the family.
“Ensure parents are enrolled in NHIF. Medical expenses are recurrent in old age. Support siblings through school or college,” Cheruiyot advises.
- Build Social Capital
Cheruiyot emphasizes the need to think beyond short-term responsibilities and focus on building assets and relationships that will create future security.
One often-overlooked asset is social capital. This refers to the network of trusted friends, colleagues, mentors and professional contacts that individuals cultivate over time.
Strong relationships can provide emotional support, career opportunities, business partnerships and assistance during difficult periods.
5.Build Financial Capital
Equally important is the gradual accumulation of financial capital. Rather than spending every salary increase on lifestyle upgrades, young professionals are encouraged to channel part of their income into investments that generate future returns.
These may include savings plans, money market funds, stocks, bonds, real estate or other income-generating assets depending on an individual’s financial goals and risk tolerance.
Building financial capital early allows individuals to benefit from compound growth and creates opportunities for passive income in later years. It also provides a financial cushion against emergencies and economic uncertainties.
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