Go splurge with your first paycheck: Sharon Au explains why that's okay

What do you do with your first paycheck? For some, a large chunk of it goes towards paying off student loans. Other people might put the cash into a piggy bank in case of a rainy day.

So when we caught up with host Sharon Au on Monday (Nov 22) for her new meWATCH series Money Money Home, we had to ask: What should young people do with their first salary?

The 46-year-old replied: "Just go ahead and splurge with your first paycheck. It's a milestone and you've worked so hard. You deserve it."

In Money Money Home, Sharon and actor-host Darren Lim offer viewers tips on money management and investment in a light-hearted manner — through skits, songs, and banter.

Recalling how she "spent it all" and more on a $98 pair of jeans with her first paycheck, Sharon said: "I remember I was doing an internship at Singapore Press Holdings. I got $95 on that day. That means I put in another $3 of my own [money]. But it gave me a huge sense of achievement, and I wore that pair of jeans every day."

While splurging on your first paycheck might seem reckless, Sharon — now working as an investment director at a private equity firm in Paris — also emphasised the importance of spending within your means.

Reflecting on the financial mistakes in her "young starlet days" in the television business, Sharon said: "I was so overwhelmed with the joy of being famous and earning money, so I bought a lot of material goods."

These included beauty products, clothes, shoes and jewellery.

"I mean, it's necessary because as a celebrity, you need to look very good. But I wished I hadn't spent so much of my salary on beautifying myself. I wished I had at least saved more, or at least invested."

Darren Lim raked up $30,000 debt after 'worst investment ever'

Speaking of his "worst investment ever", Darren revealed that buying a 1968 Morris Minor in his early twenties was the "biggest mistake".

The 49-year-old said: "I was so crazy over the antique car. I actually tore down everything and spent a lot of money to refurbish the whole car. I even flew in parts from the UK to Singapore and that got me into deep s***."

Admitting that he raked up debts amounting to around $30,000, Darren added that his then-girlfriend and now-wife Evelyn Tan made him realise the value of money so that they can have a future together.

The couple created a joint bank account and matched their monthly savings dollar-by-dollar, which freed Darren from his debts.

The motorcycle lover said: "And not just that, it actually helped me build our future nest. Not making huge amounts of money, but at least we know how to manage our wealth properly."

ALSO READ: Darren Lim turns his yacht into a business opportunity, takes people out on rides

Self-love is best love

When planning your monthly budget, it is important to account for your expenses on food, transportation and utility bills.

But what about allocating a portion of your income towards upgrading yourself? After all, self-love is the best kind of love.

"People might feel it's okay, that can come another day. But I feel that it's one of the most important things that should be planned for," Darren said

Agreeing that self-improvement should be classed as a 'need' rather than a 'want', Sharon revealed that she's been investing in yoga and pilates classes, as well as on music lessons and musical instruments.

 

 

 

 

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For Darren, the father-of-four has been into watercolour painting, playing the cello and pottery.

He said: "Whenever I have time, I think it's very important to invest in myself. It might not be something that's relevant to my work, but it makes me feel good.

"And when I feel good and rejuvenated, I know I'll be ready for tomorrow."

Money Money Home premiered Nov 18 and new episodes are released every Thursday; catch it for free on meWATCH.

chingshijie@asiaone.com