Got your first job? A five-line money plan before you invest anything
Investing your first paycheck straight away is a mistake we see constantly. Money you might need within a year does not belong in the stock market, because markets do not care about your timing.
The five lines
Write these down once and revisit them every few months. They take ten minutes and remove most money stress.
What comes in each month, on average.
What goes out that you cannot avoid (phone, transport, anything you committed to).
A small buffer — even $200 — for the broken screen or the bike repair.
One thing you are saving for in the next twelve months, with a number and a date.
What is genuinely left over. That is the only money that should be invested.
Why the buffer comes first
Without a buffer, the first unexpected cost forces you to sell investments — usually at a bad moment, because bad moments are exactly when unexpected costs show up.
With a buffer, a market fall is something you read about rather than something you have to react to.
Then automate the boring part
Decide a fixed amount per month rather than investing whatever happens to be left. A fixed amount, invested regardless of the headlines, is the habit that does the work.
The takeaway
Buffer first, goal second, invest what is genuinely spare — and keep the amount small enough that you never need it back in a hurry.