I will make 238 dollars on my first paycheck, what should I spend it on?

Question

I dont have any expenses, but I see how it would be smart to save it.. but I was thinking about getting maybe a new game system or a new phone or something.. the only thing Id save it for would be a car.. then again, 7 dollars an hour isnt enough to pay for insurance or upkeep on a car anyways tho right?

The money is actually a culmination of three weekends worth of work... so yeah, no car for me :(

Answer 1

You are about to learn TWO fantastic life lessons.

Lesson #1: 34 hours of work at $7/hour does not equal $238. If this is a job at a company your GROSS pay will be $238, but your take home pay is going to be less than that. You will have to pay FICA tax, Medicare tax and likely both federal and state income taxes will also be withheld. This means your $238 will become ~$175 after those taxes (maybe a hair more, maybe a hair less).

Lesson #2: Your money is different! Whatever you choose to do with it, remember that you exchanged 34 HOURS of your life for that money. You will start to think of things in these terms. Be careful and deliberate with what you buy so that you don't waste your money.

I would recommend saving most and spending some. $238 doesn't buy a good game system anyway :-)

Good luck!

Answer 2

If you don't have any expenses then $7 an hour would be enough to pay for upkeep on a car, depending on how much fuel you burn. It would take up maybe about half of your wages though so it is a big consideration. (i'm assuming you are working full time hours).

You should start up a regular savings account in any case, whether you have something to save for or not, maybe just put aside 2 hours worth of wages a week ($14) into an account. You will be surprised how much this adds up to over time and you will find you need it in the future and it will come in very handy. It is important to build up some kind of "emergency" money fund for unforseen circumstances, eg. loss of job, when you move home, family circumstances, etc.

Saying that, you should certanly treat yourself to something nice with your hard earned wages, just within reason! So, go ahead, buy a games system if you want or a new phone! Just don't forget to save too! You can do both!

Answer 3

OH - so you did get the job - good for you.

Now, here is what you need to do...FIRST - you must remember why you wanted the job to begin with. You had a specific reason and a specific goal for getting the job. Now that you have the job you MUST reach your original goal....otherwise you have lied to and cheated yourself out of your prize.

What was your goal - if it takes 1000 dollars to get that goal then you need to save your money until you get that much - then go get what it was you wanted.

If you are gong to look into the future - remember this one little bit of advice - you wiull never get rich if you spend more then you make. That being said the very first bill you should always pay is the one to yourself.

Yes - you read it correctly - you have to make yourself a bill and pay it every paycheck - say maybe 10% of what you take home. Put that aside in an account somewhere to grow with compounded interest (at least till you learn how to manipulate stocks)...the younger you are when you atsrt saving the wealthier you will be when you want to retire.

As for your car idea - insurance for a 16YO would be around 300 per month or so - gas for my kids is around 200 per month. If you are making 238 each week then you should have plenty of money to handle those expense and still be able to save a good chunk of it.

With the economy going the way it is - ALWAYS pay for everything in cash. Dont EVER get into the credit game if you can avoid. Set your goals, save the money for the item you want and pay it in CASH. The owner of the item is the creditor in due course - by paying cash you have no creditor therefore the item is yours outright.

You are no dummy. I am sure you understand the concepts of goals. Use these to your advantage and you will soon find yourself in a lot better financial shape then all the people around you.

Answer 4

If you save...you will be able to get a car in the future. Put aside a certain amount and you will see how it grows over time. If you have no expenses..I would put away at least $150 a week and do not touch it. The rest can be used for spending money.

Answer 5

you are saying that this is your first pay check- I would open a savings account and put in half then since you dont have any expenses next pay check put in half and continue if you end up unless you want to put more i would not buy the system until you have double that amount in your account and they go buy and continue buying things but only after you have double that amount again so you can buy things but you are still saving and that saving is for a big rainy day like a car like you said learning to save is a big thing it is a lesson for the rest of your life!!!

Answer 6

I've been on this earth for a long time, and I say save it. It's the most important thing for young people to do.
Why do you need to blow it on things.
I f you save that money now and lets say in 8 years from now you want to buy a house, a loans officer at the bank looks at your credit report and the fact that you do save a good portion of your lout, You my friend will get the house. BUT

If you blow all your money you'll be in some dismal apartment, trying to figure out how many more months it will be till you can buy another video game.
Good luck young lad, and
God bless.

Answer 7

I don't know how old you are, but the best thing to do is to spend $38 and save $200. Later in life, you will be proud of yourself for saving. Go a step further and read or talk to someone who knows about investing. Later, once you get a good return from your investments, you could buy all you want, but now, think about tomorrow not just today.

Answer 8

save your money til you have enough to buy something nice dont spend all your money at one time but that doesnt mean you cant spend a little have fun go to the movies or get a book maybe a cd and if you choose to save after a few pay checks youll have enough money to buy something really nice like a ps3 or xbox 360 and a few games :D

Answer 9

Liz said it best. It's better to be a saver than a spender. I've been married almost 35 years and my wife and I always put something away from each pay. When we first started, it was only $15.00 per week, until I retired in 04', we were putting away $200.00 per week. Of course, we don't put that much away now but it is always some amount.