What to Do with Your First Paycheck

Categories: Smart Money Decisions
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Published on: March 22, 2016

 

 

It’s graduation time again in Singapore and soon the market is packed with new employees on their first jobs. This is a good sign and a boost to the economy. It’s always better to have a new workforce joining the labor field than see a rise in unemployment among capable citizens. But where do these first paychecks usually go? They say what you do with your first paycheck can say a lot to how you’ll be spending your money.

current-account-bank

The following are some worthwhile ideas which you can do with your first paycheck:

Give this to your parents

One noble advice I’ve heard was to give your first paycheck to your parents. It doesn’t matter if your parents need this money or not. What matters is you give them your first paycheck as a sign of your gratitude for all those difficult years of raising you up. If you do take this course of action, they did indeed raise you up well. Kudos to your parents and kudos to you for honoring your parents!

Put it in a bank

A responsible way to do with your money is to put it in a bank. You can do so in the intention of building your emergency savings fund. You’ve just earned your first paycheck so that means you’re already old enough to stop depending on your parents for your daily needs. Start your financial independence by being financially wise with your money. Your emergency savings fund should also be your safety net in times of unforeseen events. You don’t have to worry about where to get money that is out of your budget.

Payslip

Start an investment

Another wise way to do with your first paycheck is to start investing them on stocks. Keep in mind to have a long term sight for your investment as your money will go farther if you leave it longer as investment. You’re never too young to start an investment. Start plotting your financial goals. You’re still young so your financial goals can be as lofty and ambitious as you want them to be. Plan for your early retirement. Plan for your travel fund. Plan for starting a family someday.

Treat yourself to a delicious meal

You’ve worked hard so you don’t have to feel guilty if you spend a portion of your money by treating yourself to a delicious meal. You may have been keeping a list of fancy restaurants you’ve always wanted to try or maybe a list of food you’ve never had yet but always wanted to try out. What you’re paying for is an experience. You’re working hard because you want to experience the good things in life. So go and enjoy!

Give to a charity

You may have a heart for helping other people and used to volunteer your time and skills to some charities or organizations and foundations with good causes. Now that you’re already working and earning your own money, you can start giving some financial assistance to these charitable causes especially when you’re already busy and too tired to go out.

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