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Congratulations on your first job! You’ve put in the hard work it takes to get to this point. But before celebrating upon payday, take note of these first. 

Receiving your first paycheck is a moment to remember. It is an exciting event and often marks the beginning of your financial independence.  

Your first paycheck is the best time to educate yourself on the best money practices. Choosing to spend it wisely, will enable you to develop good financial habits that you can count on your entire career journey. 

We are sharing four smart moves you can do to make the most of your first paycheck. There should be a room for needs, savings and investments, as well as your wants.   

1. Budget your paycheck 

As you receive your first paycheck, don’t forget to budget. Budgeting allows you to allocate your income properly. Do not spend all your paycheck at once, have awareness on where your money should go. 

It’s alright to treat those who have helped you along the way. There’s nothing like your first paycheck and it could be a good resource to treat your parents for a nice lunch or dinner, buy your parents a small but meaningful gift, share a percentage of your income to them or any other means to give back.  

2. Start building an emergency fund 

You are your greatest asset. Thus, it’s important that you have a backup cash in case of medical emergencies, sudden family responsibilities, or job loss. One way you can make the most of your first paycheck is to use it in building your emergency fund. Take at least 10% of your salary and put it on your emergency savings.  

3. Jump into your first investment 

One of the wisest advices you’ll learn when it comes to investing is to invest now, invest early, and invest for the long-term. The earlier you invest, the more your money can grow through compounding.  

For beginners, a good investment vehicle is mutual funds. Rely on a professional’s expertise and experience to handle your money. As you grow into learning how investing in the market works, you can already diversify to riskier investment vehicles. 

4. Reward yourself 

You can also reserve an amount to treat yourself for the perseverance and time you’ve spent job hunting and working on your first month. As long as you put money on towards bills, savings and investments, and other important items, then allow yourself to also experience your first paycheck.  

Buy that food you’ve always been craving for or the shoes you’ve wanted for so long. You can also invest the money on your skills by either upgrading the current equipment you use or taking an online course.  

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