First salary is special for everyone. It establishes an individual’s earning footprint and we all only hope that it goes uphill from there. The sense of freedom that comes with a first salary is unparalleled. So, it is only right that we make the best of our first salary. Fun fact: We have too many plans with it! So, if you are feeling like a deer in the headlights, you are not alone. That’s why we have put together some ideas that would make you make the most of your first salary.
1. Save 20% of Your First Salary (and every salary thereafter!)
First things first. Of all the dreams that you have with your first salary, going broke isn’t one. And the smartest people around you would ensure that their savings account is filling up and zipped tight right from their first salary. But how much to save? Make the math easier and save 20% of your salary. Contact the bank that holds your salary account and set up an automated transfer of 20% of your monthly salary to a separate savings account. As long as you do that, you never have to worry about going bankrupt again. And oh, if you want to grow it further, try investing in Debt Funds that could provide a relatively low growth but steady enough with lower risk. You can even start small.
2. Buy Something For Your Parents (Or Even Better Give Them The Rest Of The Salary)
Remember all that you have put your parents through growing up? It’s payback time honey! Needless to mention, your parents deserve it. Most parents are fine just knowing that their child has a job now that doesn’t involve being chased by police, but you should know better. They have sacrificed enough for you. Perhaps, you can part with some of your salary to buy some thoughtful gifts for them? And while we are on the topic of parents, if you were day dreaming while they dutifully imparted financial lessons to you, here’s your chance at a refresher.
3. Pay Off Debt (And Make a Habit of Staying Out Of It)
I know it’s not easy to pay off education loan with your first salary but you can make a start right away. Make your parents proud and start paying it off without asking your Dad to do it. And if you have borrowed money from anyone else, paying them off is the best thing you can do with your first salary. You will be proud, stress-free and guess what, all ready for the best part of earning your first salary. Oh, and did we mention about making a habit of NOT taking any more unnecessary debts?
4. Spend On Yourself (But Don’t Get Credit Card Debt!)
After all the good deeds you did with your salary, now is the time to finally pay yourself. Remember those million odd dreams you had with your first salary? The ridiculously expensive phone, that designer bag, or that Bose speaker that you probably won’t have time to listen to are still at the closest mall around you. They are waiting to come home with you. Free the reigns and treat yourself. You totally deserve it! Just don’t get into Credit card debt, will ya?