You’ve got your first salary – what now?

You’ve just finished your first month at your new job and soon you’ll receive your hard earned money. You probably already have an idea of how you want to spend it but make sure you leave something to put towards your savings goals.

Regardless if you live with family, a partner or by yourself, it’s important to plan ahead. How do you make your salary last enough to put away some by the end of the month? The first step is keeping tabs.

Gross and net income

The salary you’ve negotiated, in your contract, is shown as gross income. Your gross income is before tax. Your net income is the salary you get into your bank account after tax. When you receive the money, an employer fee, pension, and tax have already been paid for.

What should the salary pay for?

The money you receive should cover:

• Bills: Rent, electricity, phone, internet, food
• Insurance: Home insurance, traffic insurance, personal insurance
• Leisure: Clothing, activities, pleasure, party

Keep tabs with a budget

Plan your monthly spendings with a budget. Try to figure out how much everything will cost and decide how much you can spend in each category. Start with the 50/30/20 model and try to plan your month.

When do I receive my salary?

The most common pay day in Sweden is the 25th each month. If the 25th is a weekend, your salary gets paid out the day before.

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