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Adulting: Smart Ways to Spend Your First Paycheck

This article was contributed by Credit Bureau Singapore and edited by The Blue and Gold.

Congratulations on getting your first paycheck! This is an exciting and precious moment as you have officially embarked on your journey to adulthood. Before you start splurging on something extravagant for yourself, it is important to set a financial foundation and make plans on where you can put these monies into better use. Here are some smart ways to spend your first paycheck.

1. Pay off any existing education or tuition loans

Photo by Element5 Digital on Unsplash

First, begin by understanding the full terms of your existing education loan. Certain loans will offer more flexibility by allowing you to choose your loan tenure or monthly repayment amounts, but usually the longer you stretch your loan repayment tenure, the more interests you will have to pay in order to finish paying up your entire borrowed principal sum. In addition, there are also added hefty late and finance charges if you fail to pay up the required sum on time. Therefore, it is strongly advisable that you set aside a portion of your salary to make dutiful repayments so you do not incur additional unwanted charges. If you have more to spare for the month you can check if there is an option for you to make more payments so you can make an early settlement of your loan.

2. Credit into a high-interest product

Put your monies into your bank account to continue growing your pot of wealth. For finance newbies, who are not risk-takers, there are many banks in the Singapore market that provide very attractive high return interest rates for current or savings account holders. Typically, this comes with some basic criteria that you must fulfil in order to enjoy the high return interest rates, such as monthly credit of salary, setting up GIRO payments or a minimum monthly spend.

You can further maximise your spending by also using pay-and-reward digital wallets such as Shopback, Favepay or Grabpay that provide additional perks like cashbacks or reward points if you spend on selected categories such as food and beverage and public transport. You can also make use of online booking platforms like Chope or Eatigo to enjoy restaurant deals at a discounted rate during off-peak periods or for group reservations!

3. Invest for your future ambitions

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Do you have a roadmap on where you envision your future self to be? Driving your own car by your thirties or building your own business in your forties? Then saving up a portion of your salary to grow your capital might be a good chance to get closer to your goals. If there are new skills or challenges that you have been wanting to attempt, ensure that you are financially stable enough to fall back on during bad times or rainy days.

4. Relax and Enjoy

Lastly, reward yourself with a fun-filled short retreat with your peers or family. Nothing beats surrounding yourself with positive energy that can keep you going and feeling motivated for the rest of your journey. Otherwise, a simple treat for your friends and families will be a good way to express your appreciation towards them as well.

Photo by Freestocks on Unsplash

With that said, we are designers of our own journey and how we decide to walk our path is solely dependent on ourselves. It can be exciting to receive your monthly paychecks but it is also important to switch to your rational thoughts every now and then. Think of more ways to maximise your salary by putting them into better use that can benefit you in the long term rather than short term pleasures.

Lastly, be sure to follow Credit Bureau Singapore on Facebook for more useful content and tips on how to maintain a good credit reputation. To check your credit score, you can purchase a copy of your credit report at


Are there any other parts of adulthood that confuse you or shiver your timbers? Leave us a comment below (or write to Dear Madison) and we'll work at alleviating those fears an article at a time.

Meanwhile, follow and like Credit Bureau Singapore's Facebook page for more useful content and tips on how to maintain a good credit reputation!


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