8 Ways Your First Gig Can Set You Up To Become Wealthy
Your first gig probably won’t come with a big salary, an impressive benefits package or much prestige — but it might be the most important job you ever have. That’s because it’s your introduction to the experience of exchanging labor for money, which can be challenging, frightening and unpleasant.
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However, that formative experience unlocks the lifelong habits, strategies and secrets of building wealth and becoming financially independent.
It’s Where You Develop Your Work Ethic
Unless you inherit your money, wealth-building requires a commitment to diligence and excellence in your professional pursuits — and it all starts with your first day on the job.
“The No. 1 lesson I learned from my first job was the value of a strong work ethic,” said Robert Valentine, founder of the personal finance site The Money Alert. “Work ethic is the foundation that paves the way to success in business and in life. Simply showing up, demonstrating dependability, and putting forth the effort lays the groundwork for career advancement and future financial success. This drive is one of the most common attributes among the wealthy.”
It Teaches You To Think Strategically About Money
The first time you earn your own money, you begin to think about it not as something you give to a cashier in exchange for stuff, but as a tool for building success and affluence.
“In every first job, no matter the industry, one quickly learns the value of strategic thinking,” said Jonah Larkin, a leadership consultant who serves as a facilitator in the Interpersonal Dynamics Program at Stanford University Graduate School of Business. “These initial experiences lay a critical foundation for understanding not just how to earn, but how to manage money effectively. For me, financial prudence isn’t merely about saving. It’s about making each dollar work towards achieving larger life goals. It’s about viewing every financial decision as a step toward building lasting wealth.”
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Money-Management Skills Start With Your Very First Paycheck
Strategic thinking lays the foundation, but your first job also gives you the experience of putting that thinking into real-world practice. Bonnie Ruan, chief product officer and brand founder at the precision machining firm Beska Mold, still relies on the skills she developed early in her journey to success.
“Learning to manage your first paycheck — prioritizing savings, understanding taxes and budgeting — lays a foundation for financial acumen,” she said.
It Requires Personal Discipline and Self-Control
The sink-or-swim reality of having to work for the dollars you spend forces you to make lifestyle adjustments that are uncomfortable at first, but necessary for self-reliance.
“Your first job is very important,” said financial expert Dayten Rynsburger, chief revenue officer of Niche Capital. “There are two major skills you learn and develop in your first job — attitude control and discipline.
His first job was at the warehouse-based food and supply store Smart and Final while he was still in school. The dual responsibilities made him grow up fast. It wasn’t easy, but it was critical to his success.
“I would have eight hours of school and then have to go to work until 11 at night,” he said. “I learned to control my attitude and stay positive. There were times when I would work on a Saturday morning. That meant I couldn’t stay up all night with my friends. I had to exercise discipline and go to sleep early. These two skills have been a major player in most people’s success. Your first job will teach you these by putting you on a schedule that you can not deviate from, or you will lose said job. These skills will carry on in life and grow, which will allow you to accomplish bigger and more rewarding tasks and goals.”
The First Dollars You Earn Are the First Dollars You Save
Oak View Law Group founder Lyle D. Solomon, an attorney with expertise in personal finance, debt relief, taxes and employment law, thinks your inaugural job sets you up for financial success by teaching you the importance of saving some of those first hard-earned dollars.
“Even if it’s just a small amount from each paycheck at first, paying yourself first and living below your means from the very start builds discipline,” he said. “Watching even modest retirement contributions grow over a few years, you realize how saving money and letting it compound over many years can turn small amounts into a big nest egg.”
Low Pay Makes You Hungry for More
Hopefully, you won’t be satisfied with your first wages — and that’s a good thing.
“An entry-level salary motivates you to keep developing skills that companies value, allowing you to keep increasing your income over time,” said Solomon.
It also plants the seed for building one of the tools that are common to most millionaires — multiple sources of income.
“Your first job shows the limits of depending only on that single paycheck,” said Solomon. “Look for side gigs, freelancing, or ways to start your own small business so you have multiple income streams.”
It Can Nurture the Entrepreneurial Spirit
At some point, your first job will probably make you sick of your first boss. That can make you yearn to become your own.
“Dealing with workplace inefficiencies and bureaucracy can lead to the desire to control one’s destiny by starting one’s own business someday,” said Solomon.
You Begin To Ponder the Importance of Diversifying — First Skills, Then Investments
Your first job probably won’t be one you want to stay with forever, but to graduate to a better gig, you’ll need a more diverse set of skills, which applies directly to achieving financial security later down the road.
“First jobs often lay down the foundational bricks for financial wisdom,” said Adam Horvat, director of finance at brand-building and marketing firm Digital Silk. “One central lesson is the diversification principle. Our first jobs teach us to diversify our skills to stand out professionally, which is equally applicable in finance when we diversify our investment portfolio to mitigate risks and maximize returns.”
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This article originally appeared on GOBankingRates.com: 8 Ways Your First Gig Can Set You Up To Become Wealthy
