Your first salary becomes a special memory only if you use it smartly. Here are some things you can do with it.

Ways to spend your first salary

Your first job paves the way for the rest of your career. Similarly, what you do with your first salary could determine your future financial behaviour and stability. Would you rather splurge it on a one-time shopping spree? Or would you use it smartly to make the most of it?

Have a look at these smart ways to use your first salary:

1. Clear your dues

You may owe some money to your college canteen or even a few friends who helped you out when your funds ran out. Now, you have an opportunity to clear these dues and debts and live worry-free. If you had taken an education loan, chalk out a solid plan and start paying it off. You probably will not realise it now, but as you see that mound of debt decrease, it will make you quite happy.

Pro Tip: Learn from talented actress- Kalki Koechlin- who got her first salary while she was a waitress in a London café. The first thing she did, was clear her rent.

2. Get health insurance

With your first salary, comes the responsibility of insuring yourself. You might think of it as an unnecessary burden- now that you are young and energetic- but the benefits of this can be found at a later time. But don’t just opt for the cheapest option available; compare different plans before making a decision. Look for health plans that cover women-specific conditions, such as breast and cervical cancer, if you want the best protection. What’s more? You can also save some taxable salary by getting insured.

3. Start investing

Your first salary might not be a considerable amount, but that does not mean you cannot or should not invest a part of it. When it comes to investments, every penny counts. Open a fixed deposit (FD) or recurring deposit bank account, and put money aside for long-term goals. These investments would also help you save your taxable salary. Some years down the line, you will realise the value of this practice.

Pro Tip: Well-known actor, Arjun Kapoor, got his first salary at the age of 18 when he worked as an assistant director. He got his parents to open a bank account for him.

4. Go on a trip

All work and no play will make you tired and dull. But once the serious things have been taken care of, you can start planning a relaxing break from the stress of routine life. The best part is that you do not have to stash away large amounts of cash somewhere. By putting small amounts into suitable investments, such as SIPs or short-term debt funds, each month, you can grow your travel fund. Alternatively, you can also consider saving options like fixed deposit, recurring deposit, mutual funds, etc.

5. Treat yourself

You deserve to enjoy the money you make. Go out for a meal with your friends to a nice restaurant, buy that dress you have been eyeing, watch a movie; indulge in the small pleasures that life offers you because you will never get a first salary again. Or you can take a leaf out of the book of Bollywood star- Irrfan Khan. He had to walk a lot to get to the place where he tutored kids to earn some money. With his first salary, he bought a bicycle so that he could commute more comfortably.



While you are busy doing all the things mentioned above, try and fit in a little something for your parents, sibling, friend or that collegemate- who helped you get the job and always supported you. They don’t need a big gift, just a small gesture that says, ‘thank you’. But whatever you do, spend your first salary in a way that you will always remember.

How I did it

Kunal and Nita
Software Professionals

We are a family of five, with two kids and my mother who takes care of the house. Nita and I are both software professionals. Initially, with the kids, we found our expenses spiralling and were not left with anything to save or plan for our future. 

We decided to classify each major… Read more

Vaishali Pednekar

I believe life is too short to not to indulge in things that make you happy and I love myself some retail therapy. However, I found myself in a financial disarray a couple of years ago. Sometimes I was overspending and falling short on my bills, but mostly it was just poor planning.

I… Read more

Payal Singh
Media Professional

I have just started working as a journalist. Though as a newbie my salary is not a lot, I still make it a point to save. My parents are middle-class salaried people who have built a great life by saving small amounts for years. They have taught me the importance of saving. With the help of my… Read more

Mukesh Keswani

I run my own fabric business. I have recently bought a house and a car. So I have large sums of money going into EMIs. This makes it even more important to have a tight hold on my finances. I have kept both EMIs on auto debit on the 10th and 25th of the month. This way it does not put undue… Read more