Your First Paycheck, Defines your Life

Your First Paycheck Defines your Life

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Budget

Make good use of your first salary. How you decide to spend or save can determine your life for years to come.

If you’re graduating or starting work soon, ask yourself if you have any idea on how much you’ll spend each month on living expenses. If you’ve got no idea, then we suggest you need to start preparing a budget now. The important spending categories below are useful to help you design a realistic budget.

Food:

Apart from the spending on daily meals outside the house, do you also have a habit of buying coffee, drinks or snacks? Do you like to hang out with friends often? If yes, how much are all these expenses adding up to?

Clothing:

Do you wear a uniform provided by your employer? How much do you spend on dressing yourself up for work each month?

See also: 7 Surprising Ways to Save on Clothing

Accommodation:

Are you living close to where you work? Do you need to rent? Are you renting a whole flat, or just a room? Is it furnished? Are internet expenses and utilities included in the rent?

Travel to Work:

Are you living close to where you work? Do you need to rent? Are you renting a whole flat, or just a room? Is it furnished? Are internet expenses and utilities included in the rent?

Entertainment:

According to the <Employment Ordinance> of the HKSAR’s Labour Department, one enjoys a minimum of 7-day paid annual leave if he or she has worked for a company for at least 12 months. How often do you go on trips during this period of time? What is the budget every time? If you are unsure about the market prices, you can consider visiting the websites of the travel agencies for information like air tickets or fees to join tours. Then, you will have an idea how much to save for travelling.

These are the necessities to include in your budget in order to ensure that you can survive, enjoy life and save money at the same time. Even if your salary increases over time, never stop budgeting. In fact the older you become, you’ll find that budgeting actually becomes more important, especially if you marry, have children, retire and have to take care of relatives.

Read more: Ideal Budget for Millennials in the Workforce