Five Smart Money Moves for Your First Paycheck

Ah yes, the sweet feeling of your very first paycheck. You’ve probably been told to not spend your money all in one place. A good tip, since you’d want to extend that sweet feeling of having money as long as possible. 

The good news is that you can. The better news is that this is the perfect time to start. Here’s how:

1. Get out of debt. Intensify the feeling of financial freedom by owing nobody. Make a list of loans and credit card bills you have. Start by paying off the smaller debt to shorten your list of creditors. For bigger debts, create a debt payment scheme. Here, you commit a certain amount of your monthly paycheck to slowly but consistently pay it off. Know the minimum interest-free payment for your credit card and pay on or before the deadline.
2. Save for retirement. It’s never too early to save up for retirement. Think about it: The earlier you save, the more interest you earn, the earlier you can retire. Study the pension plans and other low-risk financial instruments in the market. Talk to finance experts for advice.
3. Give. A healthy attitude to have about money is knowing that it enables you to help others. Christian churches encourage tithing, or giving a tenth of your income. If this is too big for you, start off with a smaller amount you’re comfortable with. You can also opt to give to a favorite charity. Some Asian cultures encourage adult children who still live their parents to contribute to the household expenses.
4. Reward yourself wisely. If you find that you have money to splurge, go ahead and reward yourself. But make sure it is an item that will enhance your life and not end up in the basement after a month. A new pair of shoes? Make sure it’s a pair that you will wear often. A treadmill? Only if you DO exercise at home.
   Another way is to set off a “mad money” fund for big-ticket items like travel or major home renovation. [If you're planning your wedding, here are some money saving tips] The key here is to avoid the credit card, and instead use money that you have at the moment.
5. Budget. All these tips lead to one important thing in money management: the discipline of sticking to a budget. Your first paycheck may seem small. You may feel that there isn’t much to work around with. However, you’ll find that starting out small will make it easier to manage your money as it grows. There are a lot of personal finance resources out there waiting to help you reach financial freedom.