The first paycheck of the year sets the tone for your financial goals. In this post, I’ll show you how I budgeted my first paycheck of 2025, including prioritizing bills, saving, and managing fun spending—all while staying on track with my debt-free journey.
Step 1: Know Your Income
Before we get into your budget, it’s essential to know exactly how much money you have coming in.
- For biweekly paychecks, I recommend writing down your pay dates. I would use the least amount that I’ve ever been paid as my budget amount.
This allows you to see what bills and expenses need to be paid with which paycheck.
Step 2: Prioritize Your Bills and Expenses
Once you know your income, list all your fixed expenses.
- Examples: Rent/mortgage, utilities, insurance, and debt payments.
I like to budget my bills and expenses at the highest amount that bill and expense has been.
Tip: Use my Budgeting Workbook to track your bills and expenses efficiently.
Step 3: Save First, Spend Later
Saving is non-negotiable—even on a budget!
This year I want to build my emergency fund to 6 months of bills and expenses. I also want to pay off my credit cards and collection account.
To make sure I achieve my goals, I set aside $250 every time I’m paid to put in my savings.
Related Product: Check out my Budget Spreadsheet Template to automate your savings tracking.
Step 4: Make Room for Fun Spending
Budgeting doesn’t mean you can’t enjoy life!
After subtracting my main bills and expenses, I budget whatever I have left. Because my main focus this year is to build my emergency fund and pay off debt, there’s really not much left after. This pay period I gave myself $100 for fun!
Step 5: Track Your Progress
The key to sticking to a budget is tracking your spending and adjusting as needed.
Recommend tools you use:
I like to set aside a few minutes each week, usually on Sunday where I sit down and go over my spending. I use my expense tracker worksheet, and I write down every single transaction that has cleared through my banking account. Then, I use highlighters to categorize each of those expenses.
Start Budgeting Today
Budgeting your paycheck doesn’t have to be overwhelming. By focusing on priorities, saving, and tracking expenses, you’ll be on your way to financial freedom in no time.
Call-to-Action:
- Download my Budget Workbook to start budgeting today!
- Share your budgeting wins in the comments or tag me on Instagram @juscallmenicki!
Other Posts You May Like:
The Ultimate Guide to Budgeting for Sneakers (From a Sneakerhead)
Atlanta Cost of Living: How I Manage My Finances Living in Atlanta