Young professional: how can you save and invest from your very first salaries?

In practice: finding the right solution to manage your first income

At 24, Lilly has just landed her first job in Luxembourg and wants to organise manage her first income as efficiently as possible. Between financing her future plans, building up savings and optimising her income, she is looking for guidance to identify the solutions best suited to her situation. 

Aware of the advantages linked to her age, she wants to take advantage of offers dedicated to young people, such as a free young person's account adapted to her needs, and open a young youth savings account with an attractive interest rate. She is also interested in solutions such as discretionary portfolio management or investments offering tax advantages, to help her grow her savings with complete peace of mind. 

In Luxembourg, salaries are among the most attractive in Europe, offering an excellent opportunity to start working life on the right foot. However, with high housing costs, managing and optimising your income quickly becomes essential. 

Opening a savings account as soon as you receive your first paycheque allows you to set money aside and make it grow, unlike a current account where funds generally do not generate interest. The key? Consistency. By making automatic payments, even small ones, for example every month, you can gradually grow your capital effortlessly and almost without noticing it over the long term. 

And the earlier you start, the easier it is: one euro invested at the age of 25 will have more time to grow than one euro saved later. Ideally, you should start with your very first paycheque, as it becomes more difficult over time to build up savings overnight.  

Before investing, it is important to keep savings aside to deal with unexpected events (unforeseen expenses, a change in circumstances, moving house, etc.). 

The right amount: 3 to 6 months' salary

The idea goal is simple: set aside the equivalent of 3 to 6 months' salary. This allows you to face the future with confidence and adapt more easily to everyday changes. In certain situations (starting a career, fixed-term contract, relocation plans), 6 months of savings provides even greater comfort. To define this amount properly, it is useful to start by structuring your budget.

The right reflex: open a savings account

With a savings account, your money remains available at any time and is kept separate from your current account. This helps avoid spending it unintentionally on day-to-day expenses and allows you to maintain an genuine actual reserve for specific projects.  

The simplest solution? Automate your savings as soon as your salary is paid, turning it into an effortless habit. An amount is set aside each month without even having to think about it, which prevent viewing everything as "available budget" and helpsing you better visualise your projects. 

Even small regular contributions eventually build solid long-term savings. An advantage for those under 29: the Youth savings account..

offers a more attractive interest rate than a standard savings account, and the deposited funds remain available at any time. 

Your emergency savings have been built up, and your tax benefits have been optimised: you can now consider investing part of your savings over the longer term. 

Investing allows you to grow your savings over the medium or long term and complements traditional savings. Investments offer higher return potential, but also involve a level of risk that varies according to the investments chosen. Contrary to common belief, you do not need substantial capital to start investing: even small amounts can be invested, particularly on a regular basis. 

Leaving your entire salary in your current account

A current account is not designed for saving. Money left there earns almost nothing and even loses value over time because of inflation. Setting up a recurring automatic transfer, for example every month to a savings account, allows you to start saving easily without having to think about it. 

Mixing emergency savings and project capital in a single account

Using a single savings account for everything (security fund, travel, property purchase) makes things less clear and can complicate your decisions. The best solution is to separate your savings according to your objectives: this allows you to know exactly what each amount is intended for and what you can use. 

Postponing your first investment until later

Waiting until you have a large amount of money before you start investing often means you never actually start. Investing small amounts regularly every month can become significant over time. The earlier you start, the greater the chances that your money will increase in value.