Your First Salary: The First Six Months
A simple, judgment-free plan for what to do with your first few paychecks.
No jargon, no products to sell you. Just what to actually do.
Month 1-2: Build a buffer, not a lifestyle
Before anything else, save one month of your basic expenses in a separate savings account. Don’t touch it. This is your emergency fund — it’s what keeps a medical bill or a job gap from becoming a crisis.
Track where it goes
For the first two months, write down every expense — yes, every one, including tea and bus fare. Not to restrict yourself, but to see the real picture. Most people are surprised by one or two categories they didn’t expect.
The 3-way split (rough guide, adjust to your reality)
- 50% — essentials: rent, food, transport, family support if applicable.
- 20% — savings/investing: starts small. Even ₹1,000/month in a recurring deposit or index fund builds a habit.
- 30% — flexible: your own choices, no guilt required.
If you’re sending money home, that’s essential, not optional — build it into the plan from day one rather than treating it as an afterthought.
What to avoid early on
- Credit cards before you understand your own spending pattern.
- “Investment” schemes anyone pitches to you personally, especially from acquaintances. If it needs recruiting other people, it’s not an investment.
- Loans for things that lose value the moment you buy them (latest phone, for example) unless you can clear them in 2-3 months.
One habit worth building now
Open one recurring investment (SIP into an index fund, or a recurring deposit) for even a small amount the month you get your first salary. Starting small and early beats starting big and late.
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