When you are at the beginning of a career, it is great to spend your first pay-cheque on that perfect stereo or fancy computer. That is good, you earned a reward. But after that realize that each dollar saved early in your live is worth 60 when you retire. That flashy car you could have bought, instead of saving, is a pile of rust by the time you retire.
Don`t skimp so much that your live isn’t fun, but live below your means. Use your savings to establish a solid financial footing - say a reserve that allows you to live 3 or 4 months without a job. Next consider a house, not a big house, but something for you to live in. You may have to save a down payment and maybe your parents are willing to help a bit as well. An interest free loan or a gift from Dad. Make ensure your relatives can afford it. Don`t do a JV with you brothers, sisters, pa or ma. JV is a business - family and business don`t mix very well. With your down payment and your job income, you may be able to buy your first affordable house. Maybe you can get room mates to help pay down the mortgage. Pay off the mortgage completely, since interest on your primary residence is not tax deductible.
Next, you can think about other investments, such as using a line of credit on your paid off house to finance your first rental property. Or... invest in the stock market, which just like real estate involves learning, losses and profits. Diversify; put some in real estate, some in stocks, and some in bonds. Allocate you savings to different asset types based on your personal circumstances. Always try to learn new things about investing and let it become your second nature to think in terms of net worth accumulation and buying things that make you money.
But never forget, that life’s first rule of success is to have fun, so don`t become obsessed with money. Lifestyle first - in moderation. That Mercedes you can buy cashwithout blinking an eye once you`re a millionaire. If you do it now, it will likely be repossessed.