How To Spend Your First Paycheck

money

People new to the work force can often get confused on how to spend their money properly. The newness of making money often triggers happy feelings that often lead the spending sprees. Those spending sprees often lead to people (especially fresh faced recent college graduates) to live beyond their means and rack up debit.

I came across a fantastic article on the Green Panda Tree House titled "I Got My First Paycheck Now What?" which gives those new to the work force some good advice. MD gives a good rough outline on how to start making your new income work for you.

I like the basic structure that MD laid out for people new to the work force. The more basic the better. No need to get yourself all confused.  I look at who I need to pay (i.e. student loans, rent), what I need to buy (i.e. food, medication), what I need to plan for in the long term (i.e. house fund, retirement), what if something bad happens (i.e. job loss, hospitalization) and what I need to plan for in the short term(i.e. travel, doctor's appointments).  I like to keep my money habits as basic as possible.

Nobody will get everything planned out during their first pay period. Just start thinking about these basic things early on so you won't have to struggle later on. Anyone have their own advice on money management habits for those just entering the work force?

Image thanks to borman818

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