Paycheck 101: A College Grad’s Guide for How to Manage a Paycheck

Paycheck 101: A College Grad’s Guide for How to Manage a Paycheck
Managing a paycheck is an important skill for managing your future. Andrey_Popov/Shutterstock
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There you are, a college graduate with your newly minted degree in one hand and a new job in the other—or the confidence that you will have one soon. For years, you’ve waited for a real job with a real paycheck to get a decent car, apartment, and respectable wardrobe. After all, these are the things you so richly deserve for having nearly starved to death for many years.

Well, not so fast, buckaroo. Before you do a thing, we need to go over the fundamentals of managing a paycheck—a small detail you may have overlooked in the courses you took to prepare you for the real world.

When Net Is Gross

You may have figured your annual salary—a number that has you seeing dollar signs. That is your gross salary. Do not fall in love with it. A $35,000 annual salary, when reduced by 30 percent for “withholding” for taxes, Social Security, etc., then divided up into 52 weekly paychecks, suddenly looks more like $470.
Mary Hunt
Mary Hunt
Author
Mary invites you to visit her at EverydayCheapskate.com, where this column is archived complete with links and resources for all recommended products and services. Mary invites questions and comments at https://www.everydaycheapskate.com/contact/, “Ask Mary.” This column will answer questions of general interest, but letters cannot be answered individually. Mary Hunt is the founder of EverydayCheapskate.com, a frugal living blog, and the author of the book “Debt-Proof Living.” COPYRIGHT 2022 CREATORS.COM
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