Getting your first ‘real job‘ is a huge milestone. While exciting in itself, the paycheck that accompanies it may also feel pretty exhilarating.
Etinosa Omorogbe, a Gen-Z medical tech is currently navigating this chapter. New to the workforce, she’s learning how to create a life for herself that she can comfortably afford.
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Of course, this requires knowing how to budget, which takes practice.
Here’s a look at four tips Omorogbe shared from her experiences so far to help fellow Gen-Zers learn to budget correctly in their first career job, paired with expert advice from certified financial planner Dr. Nicole Simpson.
Consider the ‘Spontaneity of Life’
“I just recently started really working on budgeting, and honestly most of my experiences have been ‘lows’ instead of ‘highs,'” she said. “I think what makes things hard for me is reality.”
Devising a structured budget might not be that hard, but she’s already learned life tends to throw financial curveballs. “I come up with a great budget plan that works for the ‘ideal world,’ not taking into account the spontaneity of life,” she shared.
For example, a well-thought-out weekly meal plan might fall apart if unexpected late work nights lead to takeout. “I could set up a weekly plan for dinner and buy groceries for that plan, but not take into consideration the days I get off work late.”
Dr. Nicole Simpson, CFP and founder of Harvest Wealth Financial, emphasizes the importance of flexibility. “A semi-annual review makes total sense until you begin to learn your spending habits. You will begin to identify which months you have increased expenses due to birthdays, other holidays, preferred vacation dates, etcetera.”
Regular reviews and adjustments ensure long-term success. “Taking a financial snapshot and making adjustments will ensure a greater chance of success over time,” said Simpson.
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Search for Ways To Save Money Online
One of Omorogbe’s budgeting ‘highs’ has been furniture shopping, as she’s quickly learned how to stretch her dollar.
“The amazing thing about being a Gen-Z is knowing how to use the internet to our advantage,” she said. “I have been able to find amazing deals on my furniture and appliances worldwide while staying within my budget.”
Don’t Buy Everything You Want at Once
“I think the greatest thing that I have learned from having my first job is to take [my] time,” Omorogbe said. “I don’t know if it’s just me, but when I first got my job and salary check, I already had a list of all of the things I wanted to buy that I had in my mind since I was a teenager.”
Now that she finally had disposable income, she was eager to spend her newfound income on a list of long-desired items.
“All of the shoes, clothes and jewelry that I wanted but couldn’t afford before, I was so ready to buy,” she said. “I quickly realized that my ‘amazing’ salary only comes to me in portions throughout the year.”
This experience taught her to pace her spending. “There is so much time to buy new things,” she said. “That first salary or first job is just the beginning of a life with an income.”
Simpson advises taking a structured approach to balance wants and needs.
“Review your last three months’ statements and identify which expenses are non-discretionary,” she said. “Then consider if the discretionary items are expendable or if they cause you to struggle with the mandated expenses. Once identified, review the due dates of your non-discretionary expenses and align payments with your pay schedule if necessary. Most people find it easier to pay mandatory expenses immediately and then focus on wants or desires.”
This strategy might help prevent overspending on discretionary purchases, helping new earners like Omorogbe build a sustainable budget and save for the future.
Don’t Be Afraid To Ask Questions
“The one thing I wish I was told about, and I even still have questions about it, is how to save and set money aside,” she said. “Everyone always told me to have a savings account or set money aside, but what exactly does that look like?”
While she understands the importance of saving money, she needs help learning how exactly to go about it.
“Am I investing the money in my savings account?,” she asked. “How do I make a budget plan that applies to my lifestyle and salary?”
Her experience highlights a common challenge for many first-time budgeters — while creating a plan might feel straightforward, sticking to it in the face of reality can be hard. Life’s unpredictability often calls for strategies that can help create financial flexibility when juggling unexpected expenses with long-term goals.
“Check with your human resources department to determine if you can split your paycheck into multiple accounts,” said Simpson.
She believes making a plan before the paycheck hits your account can help manage financial plans.
“If so, allocate a small dollar amount or percentage to a secondary savings or checking account that isn’t so easily accessible. Your emergency cash fund will accumulate and it will not disrupt your financial goals.”
Asking for guidance — from mentors, HR representatives, or financial experts — can make a significant difference.
Overall, Omorogbe said she still has a lot of financial knowledge to gain and is eager to do so.
“I feel like there are a lot of things that I don’t know, but I believe I should know,” she said.
If you share this sentiment, you’re not alone. Learning to budget your salary from your first job is something that takes time – and likely some trial and error.
Don’t be afraid to ask for help if you need it. You can also seek financial education resources online to help you learn how to better manage your finances.
After all, financial independence is built one paycheck — and one smart decision — at a time.
Amen Oyiboke-Osifo contributed to this article.
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This article originally appeared on GOBankingRates.com: I’m Gen-Z: 4 Tips To Budget Correctly During Your First Job
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