If you’ve moved to a higher paying job, the first payday will feel great, especially if this is your first payday out of unemployment - something many of us will be able to relate to. But disposable income isn’t what makes this day so special, it’s the promise of regular income after a tough few months!
You’ve probably planned out exactly what you’re going to do with this money. How many items you can finally buy from your interiors wish list, how much you think is the ‘right’ amount to save, what your big blowout will be… hopefully, you’ve also considered outstanding debts and responsibilities first.
But in case you need help, we’ve got a five step plan to balancing your money on your first payday because, when given the opportunity, none of us can really be trusted. And, no matter what situation you're in, being smart with your money is more important than ever.
What you should do on the first payday of a new job
1. Figure out a savings account
The more you worry about your future now, the less you’ll have to in the future. Whether you want to accumulate some interest or just store some cash to resist temptation, start looking into your options for a savings account now.
2. Trial a budget
Before even touching your money, write a list of everything that you will need it for across the month. Travel, food, phone bills etc.
You’re not going to master your budget in the first month, so live frugally during the first month and slowly give yourself more leniency with each payday.
3. Retirement (yes, really)
This is literally the earliest you could start thinking about retirement, we know that. But doesn’t it make a little bit of sense?
According to research done by the Manpower Group, 27% of millennials don’t expect to retire until they are at least 70, and 12% of those expect to work until they die. We expect a bleak future, so the earlier the better.
4. Keep it a secret
If your friends are as big sponges as mine (and you’re what’s called ‘a generous drunk’), it’s better to keep the whole payday thing on the down-low for now!
5. Treat yo’self
You work hard and deserve to treat yourself. It doesn’t matter if it’s clothes, music, comics or 1940s memorabilia, if you can afford it then get it.
On the other hand, you can always get stuff when you’re older. The advice for young people is to spend money on experiences, things that help you grow and you'll remember - even if that might be limited at the moment... So buy what makes you happy (but don't completely blow your budget, 'kay).