Bertie Nel, Head of Financial Planning and Advice at Momentum

For many young South Africans, the start of the year marks an exciting milestone: the shift from student life to the world of work. In a country where employment continues to be scarce, gratitude and pride are two emotions that accompany the first job offer and pay cheque, which represents independence, hard work, and the freedom to make your own choices.

That first pay cheque is more than a moment to celebrate; it is a moment of possibility and responsibility. It’s the point when earning turns into choosing how you spend, save, and set yourself up for what comes next. Your first salary doesn’t have to do everything at once but can be the starting point of a strong financial journey.

While it’s tempting to enjoy every rand (you should enjoy some of it), the smartest move is to start small, stay consistent, and build simple habits early on. Even small, steady decisions now can grow into real freedom over time, giving you options, confidence and momentum as you build your future.

Navigating the first salary priorities

When you look at your bank balance, it is easy to feel overwhelmed by the “adulting” responsibilities suddenly competing for attention. The key is not to do everything at once, but to prioritise effectively.

1. Safeguard your health with medical aid

At this age you probably feel invincible. However, the reality is a single medical emergency can derail your financial progress before it even begins. Moving from your parents’ medical aid to becoming a principal member is a significant step. It ensures you have access to quality care without depleting your savings or relying on credit when a medical emergency hits.

2. Master budgeting

Budgeting is not about restriction but rather allocation. It is the process of telling your money where to go instead of wondering where it went. A starting point is to follow the 50/30/20 rule: use 50% for needs, 30% for wants, and 20% for savings. Consider starting to save towards an emergency fund to set aside a minimum of the equivalent of three to six months of your after-tax salary.

3. Tackle debt

Many young professionals enter the workforce with student loans. Although it is a burden, it is also an investment in your earning potential. Create a structured repayment plan. By paying even a little more than the monthly payment, you can significantly reduce the interest over the life of the loan.

4. Start thinking about retirement and income protection

It may feel uncomfortable to start thinking about retirement when your career has just started. However, time is your most powerful asset. Compound growth means that R500 invested today is worth significantly more than R500 invested ten years from now. Dedicate a percentage of your salary towards retirement savings every month – the sooner you start, the better. It is also a good idea to take out life insurance when you are young so that you can lock in lower, more affordable premiums while you are healthy and protect your future income.

5. Wheels and wealth

A common dilemma for first-time earners is transport. Do you buy a car immediately? If you need a vehicle for work, consider total cost of ownership – insurance, fuel, licensing, and maintenance – rather than just the monthly instalment. If you can wait, saving for a bigger deposit will reduce your monthly instalment, the total cost of the car, and the interest you pay on the outstanding amount.

You don’t have to walk alone

Financial planning is often perceived as something for the wealthy or the “established,” but the reality is that professional advice is most valuable at the start of your career journey.

A financial adviser acts as a coach. They help you prioritise how your salary is spent, including decisions such as paying off any debt quicker or prioritise starting an emergency fund. They will also help you navigate the finer details of insurance and investment products and keep you focused on your long-term goals when short-term temptations arise.

A journey of a thousand steps

Financial success is a marathon, not a sprint. You don’t need to have a perfect portfolio immediately. You just need to start. By making deliberate choices today – even small ones – you are choosing a future of confidence over one of stress.

Your first salary is the first brick in the house you are building for your future self. Lay it with care.

ENDS