Your first salary: what to do with it so you won't regret it
Your first own money is easy to spend in a week. A simple plan that builds good financial habits from the very start. · 4 min read
Essentials first
Before celebrating, set aside what you cannot do without until the next payday: housing, transport, food, phone. Work this sum out honestly — it is your minimum monthly budget.
Pay yourself first
Right after payday move at least 10% to a separate account or savings jar. Not “whatever is left”, but on the very first day. This is the key habit that, a few years on, separates people with savings from people without them. A small amount now matters more than a perfect amount someday.
Treat yourself — but decide how much in advance
A first salary is a reason to celebrate, and that's fine. Just decide in advance how much you will spend on treats and stay within it. That way the pleasure won't turn into “two weeks to payday and no money left”.
- Essentials — about half.
- Savings — from 10%, ideally 20%.
- The rest — for living and treats, within the amount you chose beforehand.
Start recording from month one
The tracking habit is easiest to build while the amounts are small and transactions are few. A year from now you will know exactly how much you need to live on — and that is the foundation of any financial plan.