Receiving your first paycheck is a special milestone in everyone's life. It marks the beginning of your journey as an independent adult, capable of taking on the responsibilities of the outside world. You are finally able to pay for things yourself and take care of your finances. Emraan Hashmi recently shared his first 'big' paycheck story, recalling how it kick-started his journey in the Hindi film industry. In conversation with podcaster Ranveer Allahabadia, the Raaz actor shared: "I got 25 lakhs and that was my fourth film. I did that film because I wanted to buy my Honda Accord. I bought it, and then banged the car the first time I sat in it. I went to pick up my then girlfriend, now wife." "I believe the first time you scratch a car, then you start enjoying it," he jokingly told the host. According to Mukesh Pandey, Director of Rupyaa Paisa, the urge to spend your paycheck is hard to resist; however, establishing some healthy financial behaviours early can prevent unpleasant financial habits down the road. Pandey defined financial discipline as the ability to make sound financial decisions and stay within budgets, thereby avoiding impulsive spending and steadily moving toward set goals. “Practicing financial discipline is not coming up with ways to save money but creating certain habits that consolidate one’s position in terms of finance, increase it, or keep that person secure,” he said. Here are 3 things you must do after receiving your first paycheck to establish new financial responsibilities. 1. Create a Budget: The first step to managing money is knowing where it goes. Write down your fixed expenses (rent, transport, EMIs) and variable expenses (shopping and entertainment). Setting spending limits allows you to control the amount you spend while being aware of your total contribution for the month. Following a budget is essentially your roadmap to ensuring you are living within your means. 2. Save and Invest: Put 20% of your paycheck into a savings account or into a SIP (Systematic Investment Plan); even if it is a small amount, start the habit of saving, so that you will have something put aside for an emergency. Investing is a way of growing your earned income while requiring you to be patient and think of the long term. 3. Do Not Borrow: Your first paycheck is likely to have a temptation associated with it to buy things with a credit card or to get a loan. An anecdote that needs to be repeated: it is rare to go into debt and have it work out well (aka so you can pay it back). Try to stay out of debt and likely have no debt at all. Even if you have to service outstanding obligations, try to make sure you pay off any loans and always pay your credit card invoices in full every month. Managing and building financial management is not supposed to be punitive; it is about creating stability and freedom. "Your first paycheck is not just another paycheck; it can be your first step to lifelong financial confidence," reiterated Pandey.
