You just got a brand new job and are excited about the pay increase.
You have a pile of money in your hand and you can do just about anything with it, do you…
a) put it into a savings account
b) spend all of the money on a new car or clothes
c) invest or…
d) give it away
Figuring out the best way to spend your first paycheck can be difficult because of the temptations of spending your money.
Continue reading to learn about the best ways you can spend that money so that it doesn’t go to waste.
What to Do with Your First Paycheck
Getting a new job can be stressful with all of the paperwork, new names, and information that come along with it. PayStubCreator has an easy to fill out W-2 form if you have not already done so at your new job.
A new job isn’t all that bad though, chances are your income has increased! The next decision you are confronted with is figuring out what to do with your first paycheck.
Let’s review some of the best options for this dilemma.
1. Think of the Future
Setting up a retirement account won’t be a regret in the future. Even after retirement, you will want to use the money you have saved towards a new lifestyle that doesn’t involve working.
Millennials have a higher risk of not retiring until age 70 or later. Start off on the right path by opening a 401(k) account to save money and accumulate interest. You can also put money into a personal savings account for future use.
2. Benefit Yourself
Consider signing up and putting money towards some of the benefits your company has to offer. Some may include health insurance, transportation programs, life insurance, gym memberships or discounts, retirement options, and short and long term disability.
Putting your first paycheck towards these benefits will help you in the future and save you a lot of money.
3. Plan a Vacation or Trip
You can use your PTO to take off time for a trip! Put your first paycheck money towards a small (or big) vacation as a reward for getting your new job. Check out some travel tips before your next trip out of town to make the most out of your money.
Putting money towards a trip can create fun memories and give you the chance to rest before going back to work.
4. Cut out Debt
You can use money from your first paycheck to pay off credit or minimize it. Paying off a big chunk will lower interest rates in the long run and can help your credit score.
Lowering debt will also give you a sense of relief and create a new beginning for you at the start of your job.
5. Have Fun
Rewarding yourself is always a fair option too! If you want to go on a shopping spree you can always get new clothes for your job, new things for your desk and items that will help motivate you through the new job.
When having fun, don’t forget to put money aside to save for the future!
Make It Worth It
At the end of the day, choosing how to spend your first paycheck is up to you. There are many ways you can benefit yourself in the long term by making smart money moves from the beginning.
Check out some of the biggest personal finance mistakes a person can make so that you don’t do the same!