Budgeting Your First Paycheck | First Volunteer Bank

The team at First Volunteer Bank understands how exciting it is to finally receive your first “real” paycheck. However, before you take your check, cash it and head off on a shopping spree, it’s important that you learn how to use your newfound income.

Start Your Paycheck Off Right

First things first, set aside money to pay any necessary bills.

Next, take steps to pay off any debt you’re carrying with you into this new job. Did you maybe put some school books on a credit card? Now’s the time to try and get any debt you have on your shoulders paid off as soon as possible, including credit card debt and student loans. The sooner you pay these items off, the quicker you can start saving!

You don’t have to wait until your debt is paid off to start saving. In fact, you shouldn’t! Start building an emergency fund now. You never know when something unexpected might happen and require funds you don’t have to spare. These incidents can be hard to overcome, and even more stressful to tackle when you don’t have the funds to do so. Start putting back a portion of your check now for when these situations crop up later.

Finally, you’ll want to start saving for retirement. Whether you invest in a 401(k) offered at your job or in an IRA, you need to look into the options to help save for the retirement fund you one day want to have. Remember, time is money—and this is certainly true when saving for retirement.

Do you know how much better off you will be if you start saving with your very first paycheck? Visit the First Volunteer Bank website to learn about our personal savings options so that you can get started off on the right foot financially from the very first paycheck!