congratulation — you’ve scored your first job ! But while the exhausting lookup for a full - time gig is over , the real unvoiced part has just begin : read to live off the tiny paychecks you ’ll probably take in once you start work . The medium first appearance - stage salary for Class of 2016 graduates was projected to be virtually $ 51,000 , but heap of brand - new employee pull in well below that level . Here are seven simple backsheesh for managing , deliverance , and spending money when you do n’t have that much of it .
1. THERE’S A DIFFERENCE BETWEEN YOUR GROSS PAY AND YOUR NET PAY.
Your salary might sound middling comely on composition — especially when you ’ve never had one before — but keep in mind that number you ’ve accepted ( your gross salary ) is mellow than the amount you ’ll actually take home each month ( your net pay ) . When you get paid , the money is n’t just going to you . parcel of it also go toward Union , state , Social Security , and Medicare taxes . Other discount let in health insurance defrayal and retirement deliverance , like a 401(k ) , if you choose to put money into one . ( You should . ) If you are n’t certain how much to contribute , there are plenty of online tools that can help oneself , likethis one .
When all is say and done , you will belike only be pocketing 60 to 70 pct of your full pay . Keep this in judgment before planning a budget .
2. FINANCIAL EXPERTS RECOMMEND FOLLOWING THE 50/20/30 BUDGET RULE (WITHIN REASON).
Once you obtain your first paycheck , defy the itch to fling . or else , pose down with a calculator and fancy how much of it needs to go toward all-important expense , and how much can be do away for fun hooey or saved for a rainy day .
Some fiscal expert advocate follow what they call the 50/20/30 rule . That ’s when 50 percent of each paycheck croak toward non - on the table , “ fixed ” price like snag , bills , and groceries ; 20 percent of it goes toward savings ; and 30 pct is spent on thing like personal coming into court ( habiliment , haircuts , etc . ) , travel , and amusement .
Keep in mind that this prescript is n’t intemperate and degenerate , and depends mostly upon how much it cost to subsist in your area . For instance , you ’ll likely pay way more cost of living disbursal if you live in New York City than if you live in , say , suburban Ohio .
3. STUDENT LOANS CAN BE KEPT IN CHECK WITH THE RIGHT PAYMENT STRATEGY.
If you ’re one of the 44 million Americans with student loanword debt , the 50/20/30 rule can be particularly difficult to watch . But with a niggling strategic planning , you could avoid forking over your entire paycheck to training lenders . First , seem into refinance the terminus of your loan , which could let you to make up a lower pursuit pace and pass the refund period . calculate on your income , you may also qualify for loan deferment or forbearance . The federal government also offers income - based refund architectural plan , which limit the percentage of income qualified applier have to pay towards their loans .
4. YOU CAN ALWAYS FIND A BETTER DEAL FOR COST-OF-LIVING EXPENSES.
Necessary expenses like rent , transportation , and phone eyeshade be a large part of your budget , but they are n’t set in stone . Just like you would belike look for for counterpoint deals while shopping for a telly or a sweater , continue to scan literal demesne advertising for more low-cost apartments , and control in with utilities reps to see if any particular savings , discounts , or packages are appearing on the horizon . The niggling things add up too : debate alternate to generic household staple when you gain the grocery store , and expect your HR handler what , if any , pre - tax transportation benefits your caller proffer .
5. TRACKING YOUR SPENDING HABITS HELPS YOU ADHERE TO YOUR BUDGET.
Never have as much money in your bank news report as you ’d like ? Sit down with your monthly cant affirmation , and take a long , hard looking at your spending habits . You ’ll see all the common monthly invoice , but you might observe some surprising patterns .
Do you corrupt expensive chocolate more often than you realize , or splurge on fresh detail right after you receive a payroll check ? Recognizing — and restrict — these unplanned and impulse purchases can go a long way toward help you remain at , or even under , your budget . To stay aware of them , consider downloading — and using — an app that assist you budget and track expenses .
6. OVERTIME PAY IS YOUR FRIEND.
clock long workdays for very little money ? If you put in more than 40 hours a workplace , your boss may be postulate to pay you overtime , or at least one and one - half times your even salary . delay to see what the linguistic rule are , and if you are guarantee a paycheck encouragement , get down volunteering to take on extra early and former - night hours .
If you are n’t eligible for overtime , your company may propose other benefit to employee stuck working late . You may be capable to expense dinner party or a taxicab ride dwelling .
7. YOU’RE PROBABLY STUCK SCRIMPING FOR A WHILE (BUT DON’T STOP BUDGETING ONCE YOU GET A RAISE).
After initial remuneration negotiations are made ( and first - time budgets are blown ) , it might seem tempt to ask your boss for a raise only a few month into the job . Sadly , barring an nightlong promotion or an additional - generous supervisor , you ’re in all probability stick with the same earnings for the next twelvemonth or so , as you typically should void require an employer for more money until you ’ve survived at least one annual reappraisal cycle . ( Unless your responsibilities have well increase , in which typesetter’s case : necessitate for the raise ! )
In short , you ’re go to be scrimping for a while . Use this period to learn good money habits , and once youdofinally get that coveted promotion — and the accompanying bump in salary — you’ll be well on running to financial success . But even though you ’ll be making more money , continue to adhere to the 50/20/30 rule , or consider contributing even more money to your rescue if you find like you have the squirm elbow room .
