Getting Your First Salary

The rush, excitement, and sense of independence that you get after landing your first paycheck is real and surreal. But what you do with it is on you entirely. How and where you choose to spend it are the stepping stones to your financial future. The urge of transforming window shopping into proper shopping can be overwhelmingly strong. But hold on there. To ensure your financial security or just the ability to buy the things you like in the future, consider the following first.    

Here, we will look at five things that you could do after getting your first salary:

  • Plan - The first and foremost step to achieving any objective successfully is to plan. Pen down your future goals. Consider classifying them into short-term and long-term goals to give you clarity. Follow this by setting up a budget. Now that you have a game plan ready, all that is left is for you to execute. Do this by keeping track of, and limiting your expenses. Stick to your budget. Devising a plan and setting up a budget is the easiest piece of the puzzle. The tricky part is to follow it. But if and when you do, it will be beneficial on a rainy day.
  • Get insurance - Opting for insurance protects your plans for the future. Health insurance is vital and should not be ignored. Being one of the most essential insurances, health insurance helps avoid those exorbitant hospital bills that may come your way, in case of any unforeseen hospital emergencies or health complications. In either case, being insured prevents those bills from eating into your savings. Additionally, opting for health insurance at an early age often facilitates a better deal on premiums.
  • Clear your debts and dues - Having undue debts to clear can be profoundly stressful. This can be avoided by clearing your dues, either all at once, or periodically. Living with debt reduces your net worth due to its compounding effect and forces you to pay a heavier interest on your loans, the longer it is left unpaid. So, a debt-free life is a powerful approach to a financially peaceful life.
  • Save - The benefits of saving are abundant in most areas of life. They especially come in handy as an emergency fund. Having some money stashed aside can be a lifesaver when life throws you a curveball. Having a budget is pivotal to the concept of saving. Once you think of a number, abide by it. Devising a plan and setting up a budget is the easiest piece of the puzzle. The tricky part is to follow it. But if and when you do, it will serve you generously on a rainy day. Just as Warren Buffett rightly said, “Don't save what is left after spending; spend what is left after saving.”
  • Invest - Letting your money work for you, that is the power of a healthy investment. Often regarded as another means of saving, investing in assets serves as a solid source of income. Per your risk appetite, choose investment styles that are best suited to you. Allocate a percentage of your salary to investments and diversify your assets. These will aid you in gaining profits. Remember, different investments hold different degrees of risk. Do your research on the various avenues of investment and then opt for the ones that serve your requirements.

After spending years educating yourself, you have earned your financial freedom. Kickstarting this new and exciting journey with your best foot forward keeps uncertainties at bay. Keep in mind everything we have discussed - planning, getting insurance, clearing your dues, saving and investing. Remember to take care of yourself, and pamper yourself just as often. Whilst there are numerous ways you could spend your first salary, planning for a financially healthy future, topped with spending responsibly could take you a long way.

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