Congratulations and welcome to adulthood! You just received your first paycheck. Now what? Do you buy that dress or power suit you were lusting over for weeks now? Do you treat yourself to a grown-up watch or bag?
The most adult thing you can do really with your first salary is to save it and not splurge it. It’s the first step to financial wellbeing, controlling your spending and managing your finances.
Here’s what you can do.
1. Put it in your savings account
A big chunk of your first salary should be deposited in a bank. If you do not have a bank account yet, open one. It’s one of the things that will help you manage your money.
Some companies put salaries straight into an ATM account, which makes it easier to save so just withdraw what you need. When you have accumulated enough, open another savings account and transfer your money to a bank that offers a higher interest.
Now that you are working, you can allot a portion of your salary on investments. You can start with time deposits and UITFs. When you’re confident enough, you can invest in stocks.
3. Buy insurance
The best time to get an insurance plan is right now, when you are still young, because the older you get you pay more for a policy. If you do it now, you save on costs and you get protected early. FWD Life Insurance offers insurance products with investment components like Manifest or Set for Life—products that cover you for life’s uncertainties while helping you build your wealth with less worries.
4. Continue your education
You’ve just spent the last 4 or 5 years of your life laboring on your university degree. Why are you going back there? Well, enrolling in enrichment classes—or a master’s degree—will help you get ahead in your career. Trust us! You don’t have to do it now, but remember to set up a “study fund” and put a part of your salary there. That way, when you do decide to take that course, you already have the money.
5. Do a simple act of gratitude
Now that you have received your first paycheck, it is important to use a small part of it to treat the people who helped you get to where you are now. Thank your parents. A simple act of gratitude will be a good start to spend your first salary. You can celebrate with your family without spending a lot.
6. Reward yourself
You’ve worked for your salary so it is only right that you reward yourself for a job well done. Treat yourself to a spa experience or buy that dress or bag you like. The key is to spend a bit of your salary but save the rest for your future.