It’s the end of your first month at work, and you’ve received your maiden paycheck. Ah, the first sure step towards financial independence! But before you run off to celebrate your shopping prowess, here are some ideas of what you could do with your first salary.
Building your stash: The 50/30/20 Rule
How much should you spend, and how much should you save? A good guide is to follow the 50/30/20 rule. First, divide your take-home salary into the following portions:
- 50% expenses
- 30% savings
- 20% investments
Now we’ll look at what goes into each.