What you should start doing when you start earning a steady income

cashA steady income is essential to modern living. Having a large sum might seem preferable, but a steady, stable and consistent income can actually allow you to make better decisions. The question is what should you be focused on.


Income versus lump sum

If you had a lump sum – like the total you would earn in your life – there is a high chance you would struggle to portion it out so that you obtain maximum benefit from it. We are not very good at delaying gratification. Having a steady income allows us to plan out our purchases, so that we can save and store and focus on doing what’s best of us – this is forced because our income amount is not a lump sum of all our hard work at the end of our lives.

But the distinction isn’t as sharp as many imagine. After all, you could just consider the income as being your lifetime’s earnings being divided by your employer(s).


Vehicle purchase

Independence isn’t just a state you acquire upon getting your ID, your senior certificate, diploma or degree. Just having an education doesn’t tell anyone whether you’re independent: you could still be on your parent’s dime due to the demands of study. When you finally get around to making a steady income, this can give you the opportunity to break free by, for example, getting a car.

Most people can’t afford to pay a one-off sum for a car. This is why dealerships and auto-traders allow for instalments and deposits, via various tools such a vehicle repayment calculator, bank agreements and so on. You can lower your monthly fee by making a large lump sum deposit. But overall a bank will agree to foot the bill as long as it can see that you are making a steady income.



Once you have a car, it doesn’t say much when you’re still under your parents’ roof. We all want to be outside their grasp and be able to live as adults. Yet, this means paying bills like rent, water, electricity.

Once we know how much we’re earning monthly, with a fixed income, we can work out whether we are able to buy a home. Use a home loan calculator to find out how much you could afford to pay on a bond. You’ll find out the values of the property you should be looking at, the deposit which will be required and the monthly bond payments you’ll be required to make.