Earning the first paycheck after college can be fun but no until you see all those bills which come with it. Many individuals know the feeling because they’ve also been into it. You are probably one of the many who wanted to save for your planned trip with your best friend or for that newest car you have  been eyeing however, you are just unsure on how to really scrape together savings in your income.


If you are in your 20s, meeting your money saving goals is never that easy especially if you only have entry level salary to cover your entire expenses not to mention the students’ loan that you need to pay back. Nevertheless, taking time to assess, examine and understand where the money goes exactly, you can possibly set up spending as well as saving plan that suits your lifestyle.

Many individuals think that no one can survive on an entry level salary, but this is actually not true. With the help of the following steps, you can possibly live and thrive on entry-level salary:

  • Choose a Split Which Works Perfectly for You 

Experts usually suggest splitting where money goes to three known categories such as savings or investments, fixed costs and lastly, spending money. Many also recommend a split on about 50% for the fixed costs, 20% for the savings and 30% for the spending (50/20/30). This will probably work for you or maybe, it does not. It actually depends on your exclusive financial goals.

The idea on this step is to clearly understand your cost and then plan accordingly. If you are expecting to live a home for just a bit, you can reduce you fixed spending and increase your personal savings. But, if you decide to live in the city, you can plan to bring in more towards your fixed expenses in order to cover for the rent.

  • Add  Your Monthly Fixed Costs

Where or what do you really spend your money on? Perhaps, more than you imagine or realize. It would be best have your credit or debit card statements for the past 3 months printed and then create a list. There are few essential things that can help you get easily started. You can also try a budget worksheet just in case you still feel uncertain. This highlights your needs and the things you wish you did not spend money with.

Usually, individuals need:

  • Clothes
  • Groceries
  • Housing

And the things they wish they did not have to spend money usually include the following:

  • Moving costs
  • Cellphones
  • Transportation expenses such as car insurance, gas, memberships
  • Utilities like INTERNET, water and power service
  • Health insurance
  • Payments for student loans
  • Contributions
  • Subtract Costs from your Income

Ask yourself; where do you really stand? Say for instance you are earning $50,000 annually and you bring home $4000 every month before tax. Subtract your fixed expenses from the amount. The amount you will be left with is the same amount that you will divide between added cost and savings for the future.

These are the steps to take so that you can live and thrive even with an entry-level salary.