Udisha
First salaries are always special, but, with great power comes great responsibilities. While the money might tempt you to spend it on all the things on your wishlist, you must be wise.
Create an emergency fund
The first thing you should do after receiving your first paycheque, is to set aside a part of your income, around 10% for emergencies. Do not touch that money unless some unplanned cost emerges, such as sudden medical expenses or damaged laptop. Preparing for emergencies prematurely will make you self-sufficient.
Begin investing
The earlier you begin investing, the greater growth you can expect. Invest around 10-15% of your income every month to ensure a solid savings. Automated investments such as Systematic Investment Plan (SIP) or Recurring Deposits (RD) promise great returns and are automatically deducted from your income.
Set a "fun" budget
While saving for your future and emergencies is important, it is also important that you make sure you have fun with your hard-earned money. To channelise your income and prevent unequal spending, save a certain amount every month that you will solely use for entertainment such as trips with friends, dinner with family or a movie date.
Track fixed costs
The first thing that you need to calculate after receiving your first salary, is the fixed costs that you cannot avoid, such as rent, monthly bills, electricity, domestic help and more. Setting aside the fixed costs, gives you an idea of the money you are left with for other purposes.