So you’ve graduated and landed yourself your first real job – congratulations! One month later, you receive your first salary. It just might be the largest sum you’ve ever earned or seen in your bank account.

While it might be tempting to indulge by spending all of your income, it is crucial to take baby steps to manage your finances prudently. It’s a starting point towards building an investment portfolio, buying real estate, eventually funding a wedding, and starting a family.

What you do in your 20s as a fresh graduate can impact how comfortable you will live in your 30s and beyond. With this in mind, here are five tips to help you manage your salary wisely.

1. Get medical insurance

This helps protect you against the ever-rising cost of medical bills.

There are two ways to buy medical insurance. You could buy it as a standalone product, also known as a standalone medical card. It is possible to get one that offers decent benefits at a premium below RM100 a month.

If you’re looking for a budget-friendly option, this is worth considering.

Alternatively, you could buy it as a package under an investment-linked insurance policy. Under this arrangement, you buy a medical card together with life insurance and a unit trust.

Since it is sold in a bundle, the monthly premiums are higher. Usually, the medical benefits and coverage offered are more comprehensive than a standalone medical card.

2. Build an emergency fund

If you are a natural saver, you’ll automatically be inclined to save a portion of your income. But if you are more of a spender, saving may not come naturally to you. So, what can you do?

You could open a bank account designated for saving money. Every time you receive your salary, deposit a portion of it into that bank account and “forget about it”. No withdrawing. No spending.

A good start is to have the cash equivalent of around six months worth of living expenses in a high-interest savings account set aside for emergency purposes.

3. Use credit cards to build your credit profile

If you tend to spend more than you earn, skip this part – it’s not for you. But if you have the ability to control your spending, you may apply for a credit card.

It doesn’t matter whether the card offers the best deal in terms of points or cashback. The key thing is to get one to start building your profile as a creditor. This is an important step towards you applying for a car loan or mortgage in the future.

If you pay it on time and in full, it is entirely possible for you to have a decent credit score. Bankers view you as being creditworthy and will be more inclined to have you as a borrower, thus helping your loan applications in the future.

4. Buy a cheap car

If you drive your parents’ car, or have easy access to public transport, please continue to do so. But if you are a fresh grad who could really use a car to get around, shop for one that costs below RM30,000.

Keep your monthly repayments below RM500. This could save you on depreciation cost, maintenance, road tax, petrol, and interest costs.

It may not sound sexy at the start, especially if your peers are buying RM100,000 cars with their RM3,000 monthly salaries. But how many of them will have bright financial futures?

5. Have a network fund to build connections

The four points above are about helping you achieve financial abundance. Still, if you earn below RM5,000 a month, your investment options are pretty limited.

So, the goal here is to increase your income. You could engage in some side hustles, but this isn’t for everyone. An easier route – which isn’t often considered by fresh grads – is what this writer calls a “network fund”.

Basically, this is cash set aside to build connections, seek mentorships, and learn from people earning more than you. You can use it to buy a mentor – be it a client, boss, friend, or any other successful person – a cup of coffee.

In exchange, you get to ask meaningful questions that allow you to learn, grow, and develop your career.

You don’t need to find Datuks and Tan Sris. There is plenty you can learn from those who earn RM8,000, RM10,000 or RM15,000 a month.

So, humble yourself, learn to sit down and listen – and, of course, act on the lessons you have learnt. There’s a good chance that you could be doubling or even tripling your monthly income in the next few years.

This article first appeared in KCLau.com.

Ian Tai is a financial content writer, dividend investor, and author of many articles on finance featured on KCLau.com in Malaysia, and ‘Fifth Person’, ‘Value Invest Asia’ and ‘Small Cap Asia’ in Singapore.