Your first paycheck: Make it count!

Receiving your first paycheque is an exciting milestone, but what you do with it next is even more important, as it can set the tone for how you manage your money in the future.

Without the right knowledge, it’s easy to spend on impulse and end the month feeling regret rather than reward.

Here are some simple, useful tips to help you make smart choices with your first deposit — and every paycheque after that.



Build the habit of budgeting early

Before spending, create a simple budget by dividing your income using the 50/30/20 principle, which consists of 50% for needs, 30% for wants, and 20% for savings or investments.

“I put everything in my budget. It details my income, expenses, assets, liabilities, etc.,” said Mandume Mufika, Group Senior Accountant at Network Media Hub (NMH). "Having monthly and yearly budgets ensures sustainability in the foreseeable future. And remember, your budget does not need to be perfect, just begin somewhere."



Pay yourself first

It’s important to treat your savings like a monthly bill — as though that money will never return to you, like other bills. Set up a direct deposit where a portion of your salary automatically goes into a savings or investment account. Over time, this builds discipline and financial security.



Protect what you are building

Start considering health insurance, life insurance or income protection plans, especially if you support loved ones. “Many people overlook financial protection, and it's not just for older people,” Financial Wellness and Insurance Advisor Joan John said. "These are like safety nets that can help you stay on track no matter what life throws at you."



Avoid lifestyle inflation

“Flexibility now means freedom later,” John said. It’s tempting to upgrade your lifestyle immediately, but it’s more important to keep your core expenses modest while building a financial cushion. Try to make decisions and stick to them — you can always go an extra month without a new pair of trainers.



Learn continuously

Your first paycheque is the beginning of a new journey. Start by educating yourself through reading books, following financial educators online, and asking financial experts questions that relate to financial literacy. You don’t need to be in the industry to educate yourself on it.



Your first paycheque is more than just money — it's an opportunity to build healthy financial habits that will benefit you for years to come. By applying the practical tips shared here, you can take control of your spending, save with purpose, and gain financial confidence.

And remember: it’s not just about earning, it’s about using your income wisely to support the life you want to live.