How to budget your first serious salary

A useful budget begins with take-home pay—the amount that reaches your bank account after tax and payroll deductions. Start by listing housing, utilities, transport, groceries, insurance and minimum debt payments. Add irregular costs such as annual subscriptions, car servicing and holidays by dividing the expected total by 12.

Then give the remaining money three jobs: near-term safety, long-term wealth and flexible spending. The 55/20/25 split on this page is a starting point, not a test. In an expensive city, essentials may be higher. Keep even a small "future" contribution so saving remains automatic while you work on the larger ratio.

Your payday routine

  • Automate bills and a savings transfer just after payday.
  • Set one weekly spending amount for food out, entertainment and small purchases.
  • Review actual spending once a month; change the plan, not the past.

Best first move: download the monthly plan above, then replace its percentages with amounts you can repeat for the next three paydays.

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