There’s something special about seeing your first salary hit your account. After years of studying, interning, and surviving on a student budget, seeing your first full salary in your bank account is a massive milestone. You’ve earned it.

Now, before you splurge on that celebratory dinner or the gadget you’ve been eyeing, let’s talk about what comes next. The habits you build with your first few paychecks can set the foundation for your entire financial future. It sounds dramatic, but it’s true.

Getting started doesn’t have to be complicated. Forget about complex investment charts for now. Here’s a simple, prioritised checklist to get your financial admin sorted and your money working for you from day one.

Step 1: Get Your Financial House In Order (The First 30 Days)

Before you can budget, you need a system. The first month is all about setting up the right accounts and understanding where your money is actually going.

• Open Two Bank Accounts: The first will be your main current or savings account where your salary gets paid in and from which you’ll pay your bills. The second is your dedicated savings account. This is critical. By moving your savings to a separate account, you’re less likely to accidentally spend it. For bonus points, look for a high-yield savings account that offers better interest rates.
• Decode Your Payslip: That document isn’t just a number. It tells a story. You’ll see deductions for EPF (KWSP), SOCSO (PERKESO), and EIS. These aren’t optional: they are your government-mandated safety nets. EPF is your retirement fund, while SOCSO and EIS provide a cushion if you lose your job or get injured. Know these numbers. Make sure your employer is paying these!
• Register for an LHDN e-Filing Account: Yes, we’re talking about taxes. Even if your salary isn’t high enough to be taxed yet, registering for an income tax number and an e-Filing account with Lembaga Hasil Dalam Negeri (LHDN) is a smart move. It’s a bit of admin you’ll be glad you got out of the way early.

Step 2: Give Every Ringgit A Job (The 50/30/20 Budget)

The biggest question is: “How much should I be saving?” A great starting point is the 50/30/20 rule, just one of several classic budgeting rules that still work in 2025. It’s a simple framework to allocate your take-home pay (the amount after EPF and other deductions).

• 50% for Needs: This is for the absolute essentials. Think rent, car loan, PTPTN repayment, petrol, public transport, groceries, and utility bills. If you’re spending more than half your income here, you may need to look for ways to cut back on your fixed costs.
• 30% for Wants: This is the fun stuff. It covers everything that makes life enjoyable but isn’t strictly necessary for survival. We’re talking about cafe hopping, streaming subscriptions, new clothes, hobbies, and that celebratory dinner we mentioned earlier.
• 20% for Savings and Debt Repayment: This is your future. By putting this portion towards building your emergency fund and saving for big goals, you’re letting your money work for you through the power of compound interest. It’s also for paying off any high-interest debt you might have. Automate this! Set up a recurring transfer to your dedicated savings account the day after you get paid.

Step 3: Build Your “Oh No!” Fund

Life happens. Your car tyre goes flat, your laptop dies the week before a big deadline, or you need an unexpected trip to the dentist. An emergency fund is your financial shield against these surprises, preventing you from going into debt.

Your first goal should be to save RM1,000. It’s an achievable target that can cover most minor emergencies. Once you hit that, don’t stop. The ultimate goal is to save 3 to 6 months’ worth of essential living expenses (your “Needs”). Keep this cash in that separate, high-yield savings account you opened. It needs to be easily accessible, but not so accessible that you dip into it for a bubble tea craving.

Step 4: Protect Your Biggest Asset (You!)

Your ability to earn an income is your most valuable asset. You need to protect it. Your new company likely provides some basic insurance, but it’s often not enough and it’s tied to your employment.

The one piece of coverage you should consider immediately is a personal medical and hospitalisation plan. A serious illness or accident can wipe out your savings in an instant. Having your own medical card gives you peace of mind and access to the healthcare you need without the financial devastation. Start with this basic coverage; you can explore other plans like life insurance or critical illness coverage later as your income and responsibilities grow.

Step 5: Tackle High-Interest Debt

Some debts weigh more heavily than others. A student loan like PTPTN has a relatively low interest rate and can be managed with consistent monthly payments. High-interest debt, like credit card balances or personal loans, is a different beast.

If you have any debt with an interest rate above 6-8%, make it a priority to pay it off as quickly as possible. The interest charges on this type of debt can snowball, actively working against your efforts to save. Use part of your 20% savings allocation to clear these debts before focusing heavily on other long-term goals.

The Goal Is Progress, Not Perfection

Getting your first salary is a huge achievement. By taking these five steps, you’re investing in your future  by building a strong financial foundation. And you’re making sure you’ve got money for fun stuff too. Don’t get overwhelmed. Start with Step 1, automate your savings, and build from there. 

Every smart financial journey begins with one intentional choice. This can be yours.

And remember, you’re not alone on this journey. Whether it’s your next big money milestone or a quick tip to stretch your ringgit further, RinggitPlus is here to help you make smarter financial decisions, one step at a time.

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• TAGS:
• Financial Planning - Career
• First Paycheck
• How-To