How should you spend your first salary?

You're finally employed and that beautiful message is received that your salary has been credited. So, what next?

Perhaps you already have some plans on how to spend this money but stop and think for a bit about how you can make the best out of it.

Although counter-intuitive to the overall message from laarikoba? I would not recommend that you focus on saving on your first pay check. Yep, you heard that right.

Financial planning seems overwhelming and subjecting yourself to a strict management method may put you off the idea and affect your long-term plans.

In the famous words of Tom Haverford, "Treat Yo Self!" comes to mind.

How you spend this first salary depends entirely on yourself but be sure to ask yourself the following:

1) Do I owe money to anybody? Pay this off first to get that load off your mind.

2) Who helped me get here? Maybe treat the person(s) as a thank you.

As far as your salary figure allows, consider keeping aside something for a rainy day. The average salary for an A Level graduate ranges anything from MVR 5,000 to MVR 11,000. Tucking away around MVR 500/- for a rainy day can help you along for your financial journey.

However, be careful of Lifestyle Inflation - this is a phenomena where you unknowingly raise your living standards to match or exceed your income levels. For example, if you were eating out just once a week, given your new income source, you may be tempted to increase that to 2-3 visits a week. Although this is normal, understanding your behaviour and the impact this has on your financial well-being is paramount.

When you've settled into your job, consider creating a budget and keeping track of your expenses to ensure that you do not sacrifice your long-term goals for a short-term gain.