For those who struggle at their first job, upon receiving salary, you might want to make the most of your first salary. That being said, what should you do?
Spending your first salary unwisely will make you regret by the time you reach the half of following month. Believe it or not, salary tends to go faster than you expect.
“So, should I invest my first salary?” You do not have to. Financial Expert Jean Chatzky understands that, for first-time employees, what you mostly want to do is to survive.
Despite that, it is not an excuse to spend your money irresponsibly. Therefore, to avoid irresponsible spending and to make the most of your first salary, here are things that you can do.
Also Read: Worry Less, Salary Never Defines You
Delegate Your First Salary for Multiple Purposes
First things first, you have to delegate your first salary for multiple purposes prior to making any spending. In other words, you have to classify its portions for your various needs.
For instance, you can group it to several classifications such as emergency funds, short-and-long term goal allocations, and insurance. You do not need to allocate too much money for it, just adjust it to your earnings.
Save Your Money in Another Bank Account
Although you can classify your current account for different purposes, it is highly advisable to save your money in another account. This is so that you will never touch your savings at all cost.
For starter, you can take 10% up to 20% for savings. This is the money that you must not use for daily spending. Should you need more money in the following month, rely on your emergency funds.
Treat Yourself
You have worked hard for a full month to earn that money, so it is never wrong to treat yourself. In many cases, work induces stress and burnout, thus you need ways to counter it.
In so doing, you can appreciate what you have done through activities that you like. Buying a pair of new shoes, going to cinema, or funding your hobbies might a good way to do so.
