Skip to main content

Financial Planning for new Salary Earners

You have just got a job but you are clueless as to how to manage your money. You either spend your entire disposable income or let your savings sit on the credit side of your saving account. Either way, you are not doing the right thing.

Managing money can be an overwhelming process especially when you have just started earning. You are a millennial and still celebrating the fact that you are able to afford your rent, utilities and other expenses on your own. However, if terms like savings, investment, personal finance and money management are making you anxious, then try to understand these points:

1) Setting a monthly budget

Big organisations run on the simple principle of budgeting. The marketing department sets a campaign budget; the product department sets a research and development budget. Similarly, we set a budget before we think of making a big purchase. The same concept applies to our monthly expenditure as well. Write down your income and expenses. Try to limit the expenses by up to 60% of your income by budgeting the same. It can be done once you track, list, categorise and prioritise your expenses. Create your budget revolving around your lifestyle. Don't try to copy someone else's spending habit. Setting a budget in conformity with your expense can give you a lot of clarity and control. Also, the budget should not be so restrictive that living becomes a punishment.


2) Build a habit of consistent saving

The budget set shall help you to reach at a definite income-expense ratio after several attempts of trial and error. You may find yourself succumbing to temptations courtesy brilliantly curated advertisements. Don't worry. Keep aside a definite buffer sum for your crave-purchases. After adjusting various expenses for the first few months, slowly include savings into your budget. If you find savings difficult, then think long-term. Would you rather want a trip to Rome or fifty days of fine wine and dine? Learning to live within the means can be difficult in the present times but, your money-hygiene is just as important a discipline as your work-out regime. Financial planners suggest avoiding debt by keeping a check on credit card usage. Set short-term and long-term financial goals.


3) Leave room for some flexibility

At the start of your career, you may change jobs and cities. Make a flexible plan. Avoid committing to a long-term payment cycle like home loan if your work life and goals change frequently. Also, tying your savings into long-term products may not work if your goals change and you need funds immediately. Your investment plan shall also move like your savings plan. Park your investments in instruments which give you a lock-in which is similar to your financial goals. For example, if you are planning to get married in 3 years, then invest your money in an instrument with a 3-year lock-in.

4) Allocate towards an emergency fund

To hedge yourself against uncertainties, it is essential to build an emergency fund before assigning a chunk towards investment or savings. You have just started your career and you may get hit money-wise when you are exploring your options. Hence, an emergency fund can come to the rescue to give you some buffer time. Treat this fund as a cushion in order to remain debt free and review this fund from time to time.


5) Start investing your saved money

Investment is a term which is Mariana Trench deep. There are many products on the market you may not be aware of. Start simple. Focus on tax-efficient investment products like equity-linked saving scheme funds, provident funds and dividend incomes. Keep a certain amount aside dedicating to your retirement fund. Before splurging on couture think about getting a health and vehicle insurance. The investment options should be based on your financial situations. Putting all your money in equity in a stock exchange can prove to be financially fatal if you don't have enough margin of safety to fall back on. While you can postpone life insurance for a while but, you shall cover yourself with a health insurance if you are self-employed.

6) Maintain a sound credit history

Banks may decline your loan petition in future if you have demonstrated a bad behaviour in repaying debts. Pay your bills on time. A good credit profile is useful later in life when you wish to borrow funds. Just like your country, you are also rated on your financial credibility.




SIPs are Best Investments as Stock Market s are move up and down. Volatile is your best friend in making Money and creating enormous Wealth, If you have patience and long term Investing orientation. Invest in Best SIP Mutual Funds and get good returns over a period of time. Know which are the Top SIP Funds to Invest Save Tax Get Rich - Best ELSS Funds

For more information on Top SIP Mutual Funds contact Save Tax Get Rich on 94 8300 8300

OR

You can write to us at

Invest [at] SaveTaxGetRich [dot] Com

Popular posts from this blog

Post Office Deposits Interest Rates

Best SIP Funds to Invest Online   SIPs are Best Investments when Stock Market is high volatile. Invest in Best Mutual Fund SIPs and get good returns over a period of time. Know Top SIP Funds to Invest Save Tax Get Rich For further information on Top SIP Mutual Funds contact  Save Tax Get Rich on 94 8300 8300 OR You can write to us at Invest [at] SaveTaxGetRich [dot] Com

HDFC Capital Protection Oriented Fund – Series II 36M May 2014 NFO

Download Tax Saving Mutual Fund Application Forms Invest In Tax Saving Mutual Funds Online Buy Gold Mutual Funds Leave a missed Call on 94 8300 8300     HDFC Capital Protection Oriented Fund – Series II 36M May 2014 NFO will be open for subscription from 16th May 2014 to 30th May 2014. The key features of the scheme are as mentioned below:   Type of Scheme A Close Ended Capital Protection Oriented Income Scheme Benchmark Crisil MIP Blended Index Fund Manager Mr. Anil Bamboli , Mr. Vinay R Kulkarni & Mr. Rakesh Vyas New Fund Offer (NFO) Period 16 th May 2014 to 30 th May 2014. Minimum Application Amount Rs. 5000 and in multiples of Rs.10 thereafter Plans/ Options Offered Growth and Dividend Payout Facility Liquidity To be listed For further information contact Prajna Capital on 94 8300 8300 by leaving a missed call

SBI Magnum Taxgain

Grown 37 times in 23 years- SBI Magnum Taxgain Scheme   Invest Rs 1,50,000 and Save Tax upto Rs 46,350 under Section 80C. Get Great Returns by Investing in Best Performing ELSS Funds Top 4 Tax Saver Mutual Funds for 2017 - 2018 Best 4 ELSS Mutual Funds to invest in India for 2017 1. DSP BlackRock Tax Saver Fund 2. Invesco India Tax Plan 3. Tata India Tax Savings Fund 4. BNP Paribas Long Term Equity Fund Invest in Best Performing 2017 Tax Saver Mutual Funds Online Invest Best Tax Saver Mutual Funds Online Download Top Tax Saver Mutual Funds  Application Forms For further information contact  SaveTaxGet Rich on 94 8300 8300 Leave your comment with mail ID and we will answer them OR You can write to us at Invest [at] SaveTaxGetRich [dot] Com OR Call us on 94 8300 8300  

How to PPF Account extension after maturity

A PPF account can be retained after maturity without making any further deposits. The balance will continue to earn interest till it is closed. Public provident fund or PPF remains one of the most popular savings options for the long term despite a gradual decline in interest rates over the years. PPF accounts have a maturity period of 15 years and they can be extended. If there is no fund requirement, financial planners say, PPF account holders should extend the account beyond 15 years. In terms of income tax implications, PPF accounts enjoy the benefit of EEE (exempt-exempt-exempt) status . Under Section 80C, contribution up to Rs 1.5 lakh in a financial year qualifies for income tax deduction. The interest earned and maturity proceeds are also tax free. What are your options when a PPF account matures? 1) A PPF account can be closed after the expiry of 15 financial years from the end of the year in which the account was opened. 2) The subscriber can retain his

Mutual Fund Riskometer

Mutual Fund Riskometer   Best Tax Saver Mutual Funds or ELSS Mutual Funds for 2015 1. ICICI Prudential Tax Plan 2. Reliance Tax Saver (ELSS) Fund 3. HDFC TaxSaver 4. DSP BlackRock Tax Saver Fund 5. Religare Tax Plan 6. Franklin India TaxShield 7. Canara Robeco Equity Tax Saver 8. IDFC Tax Advantage (ELSS) Fund 9. Axis Tax Saver Fund 10. BNP Paribas Long Term Equity Fund You can invest Rs 1,50,000 and Save Tax under Section 80C by investing in Mutual Funds Invest in Tax Saver Mutual Funds Online - Invest Online Download Application Forms For further information contact Prajna Capital on 94 8300 8300 by leaving a missed call --------------------------------------------- Leave your comment with mail ID and we will answer them OR You can write to us at PrajnaCapital [at] Gmail [dot] Com OR Leave a missed Call on 94 8300 8300 --------------------------------------------- Invest Mutual Funds Online Invest Any Mutual Fund Online Download Mutual Fund Application Forms from all AMCs Down
Related Posts Plugin for WordPress, Blogger...
Invest in Tax Saving Mutual Funds Download Any Applications
Transact Mutual Funds Online Invest Online
Buy Gold Mutual Funds Invest Now