Your first paycheck

The concept of managing your monthly income may be something that some people think is something you start learning from when your parents start giving you an allowance but I can honestly that it’s very different managing a salary. For the purpose of this article we’re going to assume that the safety nets are gone and you’re living away from home now.

Realistically it’s going be a challenge getting that first paycheck to begin with for most people, I know it was for me. And when you get it you’re going to want to splurge and some people may say you need to hold yourself back but I’m of the opinion that you need to give in to that feeling (within reason of course). That first month is the time to give in so that next month you can look back at whatever it was that you decided to splurge on and that’ll help hold you back from overspending again. It’s like doing something to make you feel guilty on purpose.

Before all that of course is setting that actual budget. First things first you’ll have to deduct your necessary expenses for the month. Utilities are going to be the first step in that regard so you need to compute for how much that is going to be. A nice benchmark would be to base it on how much things used to cost where you used to live (electricity, water, heating,). Next would be the set cost of living that you’re going to need to pay now which includes things like (rent, internet, your phone bill, and maybe cable if you decided to go that route). Okay now we’ve got the most important expense which you will definitely need but you can reduce if you don’t mind living a bit destitute but I strongly urge you to go more into groceries so you don’t feel the need to eat out because that is definitely more expensive. Whatever you find yourself having left is savings or for the first month the amount you have to work with for that self-indulgence I mentioned earlier.

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