According to Aušrinė Mincienė, head of daily banking at „Luminor“ bank, the most important thing at this stage is not to aim for a perfect budget, but to create a few simple habits that will prevent the salary from “melting away” in the first weeks.
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The first salary often creates a sense of freedom: finally being able to buy the desired things yourself, have fun on weekends, or depend less on parents. However, new obligations often arise at the same time, which may not have been felt before – rent, utilities, transport, food, phone bill, study or other loans.
“The first stable salary is a very important moment because a young person clearly sees for the first time the connection between work, income, and daily choices. Naturally, you want to reward yourself, but if the first weeks become a period of spontaneous purchases, the end of the month can be unpleasantly long,” says A. Mincienė.
First – essential expenses
The expert advises that upon receiving the salary, one should first not think about what they would like to buy, but to list the main essential monthly expenses. These are usually rent, bills, food, transport, communication services, loans, or other financial obligations.
“A very simple rule often helps – as soon as you receive your salary, separate the money that will definitely be needed until the next month’s income. If this amount remains in the same account as the money for entertainment, it is very easy to get the wrong impression that you can spend more,” says the „Luminor“ bank expert.
According to her, it is not necessary to immediately create complicated tables or use several apps. To start, it is enough to write down the main expense categories and realistically assess how much money each will require. It is important to include not only obvious expenses but also smaller ones that can add up to a significant amount by the end of the month – takeaway coffee, lunch out, ride-sharing services, subscriptions, or spontaneous online purchases.
Don’t forget the entertainment budget
The first salary should not mean complete self-restriction. On the contrary, according to A. Mincienė, a clearly defined amount for leisure allows you to have fun without guilt.
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“A budget is not a ban on living. It is rather an agreement with yourself on how much you can allocate for pleasures so that after a few weeks you don’t have to borrow or worry about essential expenses. When the amount allocated for entertainment is clear, it is easier to decide what is really worth your money,” says the „Luminor“ expert.
She advises paying attention to social pressure as well. Starting work may seem like you now need to entertain more often in the city, buy more things, or live like higher-earning friends. However, the financial goal of the first working years should not be to show that you can spend more, but to learn to manage your income.
Debt should not become a habit
If a young person already has debts or uses a credit card, this part of the budget should be planned especially responsibly. Small debts may seem insignificant, but regularly borrowing carries the risk that part of the salary each month will be allocated not to future goals but to cover previous decisions.
“If you have obligations, their payments should be treated as essential expenses, not as amounts to be paid if there is money left. The earlier young people understand that debts reduce the freedom of future choices, the easier it is for them to make responsible financial decisions,” says A. Mincienė.
The expert also recommends reviewing where the money went at least once a month. This should not be self-blame – rather an opportunity to see which expenses were necessary, which provided real value, and which happened simply out of habit or impulse.
“The first salary is a great opportunity to start building a relationship with money based not on fear or strict prohibitions but on clarity. When you know how much money you have, what it is needed for, and what goal you want to achieve, financial freedom becomes much more real,” she concludes.
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