Graduating college and landing your first job is a huge milestone—congrats! But once that first paycheck hits your account, the real question kicks in: Now what?

Here’s how to make the most of your money from the start:

1. Understand Your Pay Stub
   Your salary offer isn’t the same as your take-home pay. Taxes, Social Security, and benefits (like health insurance or retirement) get deducted. Take a few minutes to understand where your money is going—it’s a great habit for staying financially savvy.
2. Set up Direct Deposits
   If you haven’t already, consider setting up direct deposit to ensure you get paid safely and on time. Many employers even allow you to split your paycheck between multiple accounts—like sending a portion straight to your savings, or even better, a high-yield savings account. It’s an easy way to “pay yourself first” and build up that rainy day fund without lifting a finger. 
3. Create a Simple Budget
   A solid rule of thumb? Try the 50/30/20 rule:

   • 50% for needs (rent, bills, groceries)

   • 30% for wants (fun, shopping, subscriptions)

   • 20% for savings and debt payments

   Not a spreadsheet fan? There are plenty of budgeting apps that make it easy and automatic.

4. Start Saving (Even Just a Little)
   Your future self will thank you. Build an emergency fund for unexpected costs like car repairs or medical bills. Aim for $500–$1,000 to start, and grow from there. Even setting aside $25 a paycheck adds up over time.
5. Avoid the Lifestyle Trap
   It’s tempting to upgrade everything—new car, fancy dinners, premium streaming services. But slow and steady wins the financial race. Start small and grow smart.
6. Contribute to Retirement (Seriously!)
   Yes, even now. If your employer offers a 401(k)—especially with matching—start contributing as soon as possible. Don’t leave free money on the table! Even a small contribution adds up thanks to compound interest.

Your first paycheck is more than just money—it’s your first step toward financial independence. Use it wisely, and you’ll set the stage for a secure and empowered future.