What to do with your 1st PAY CHECK?!🧧

For all the fresh grads who just started working and are not sure what to do with your first big pay check, this post is for you! 💰 I’ll be sharing how you can split and allocate your first pay check to the necessary portions (e.g. savings, insurance, investments, necessities).

20% to SAVINGS 💰

⟡ Start saving for your emergency funds first! This should add up to 3-6 months of your income, and will be used for emergencies, for e.g. if you lose your job, you can rely on this stack of funds first until you find your next job!

⟡ Next, short-term savings! After you have your emergency funds down, you can have short-term savings for your goals within these 3-5 years, for e.g. buying a car, a house or getting married :)

20% to INVESTMENTS 🏦

⟡ You might not think that investments are necessary, but these investments are actually for you to plan for your long-term goals (more than 10 years).

⟡ By investing, your money will grow as well.

10% to INSURANCE ⛑️

⟡ I’ve already did a post on What insurance plans you should get in your 20s! Check that post out to find out more~

50% to OTHERS 🛍️🍟🚘

⟡ So for the remaining amount of money you have after putting some away for savings, investments and insurance, will be for everything else you need to pay for.

⟡ These include your monthly bills, subscriptions, food, transport, self-care and more!

An advice I would give is to try and follow this 20/20/10 guide and your bank account will look very very healthy. Trust me 😆

#Lemon8SG #Adulting101 #lemon8lifestyle #mindfulspending #RealTalk