Life Stages: First job, first paycheck and first budget

— -- With your first "big" job comes your first "big" paycheck.

But it also comes with the question of what to do with that hard-earned cash. If you take time now to plan when it comes to budgeting and saving, then the credit card you get and even your retirement fund will pay off, literally, in the long run.

"Establishing a working budget is critical," says Vince Shorb, chief marketing officer at the National Financial Educators Council.

Start by figuring out your take-home pay. Mitch Weiss, a finance professor at Hartford University in Hartford, Conn., says most young people don't realize they're actually taking home about 75% of their paycheck once taxes, Social Security and 401(k) contributions are factored in.

Upon accepting a job, Weiss suggests using a site such as YourMoneyPage.com to calculate how much will be withheld from your paychecks.

Nathan Jones, 22, learned how to set up a budget as part of his employee training when he started his job last September as a campus recruiter for a publishing company that sells education materials door-to-door. Jones graduated from Midland University in Fremont, Neb., in May.

His company, Southwestern, taught him to factor in necessary expenses such as rent and utilities, but also that "you have to have fun" and should account for eating at restaurants and going out with friends.

Many financial professionals recommend free online tools such as Mint, which allows users to link all their financial information to one account. Users can allocate spending based on categories, set savings goals, and receive reminders when bill payments are due.

"I have automated payments for Verizon, student loans — Mint will alert me that the payment just went through, and it keeps me on track," says Raquel Castillo, 24.

Castillo, who serves as media director at Mount Kisco, N.Y.-based Growthink, a company that helps entrepreneurs launch their businesses, sought out a financial adviser last August who taught her to pay "yourself first and the bill collectors after."

Paying "yourself first" refers to the practice of automatically putting a portion of a paycheck to a savings account. Setting up automatic bill payments or automatic transfers to a savings account each time you're paid locks away money before you have the chance to spend it.

Start with the basics

Even if you have checking and savings accounts, you may want to reassess to make sure they still fit your financial lifestyle, says Greg McBride, senior financial analyst at Bankrate.com. While bank fees have been on the rise, McBride says low-cost and free checking accounts are still out there, especially at community banks, credit unions and online banks.

Also consider getting a credit card. It takes time to build a credit history, so the sooner you start, the easier it will be, says Gerri Detweiler, personal finance expert for Credit.com.

If you're likely to carry a balance on the card, look for the lowest interest rate for which you can qualify, she says. Detweiler also suggests considering a secured credit card, which requires a deposit of around $300 to $500, which is usually equal to the amount of credit you're granted. A secured card is easier to get, and your investment in it gives you more incentive to pay the bill.