After receiving your first job, how to save and invest


When most new employees are in their mid-twenties, they receive their first payment. What they all have in common is a general strategy for what to do with their money, especially during the first few months.

A piece of the money may be spent on that much-wanted technological device or a new garment, while another amount may be spent on dining and entertainment with friends, and so on. If their savings account is still in the black and growing on a monthly basis, they may feel satisfied.

While spending on oneself is perfectly acceptable, newcomers who have recently begun earning should reexamine this approach and give careful consideration to the entire concept of earnings, saves, spending, and investment. “Financial planning and discipline must be instilled in young adults from an early age.

This guarantees that saving money becomes a lifelong habit, and that there is always a ready fund for a variety of critical milestones later in life. “It’s critical to comprehend current income levels and spending patterns in order to strike a balance,” says Navin Chandani, MD & CEO of CRIF High Mark.

The sooner people start saving, the less they’ll have to set away and the better they’ll be able to take advantage of compounding. To begin, young people should recall the formula: ‘Income minus savings equals spendings.’ Make a strategy to save a particular amount of money each month from the money they earn.

Even if you can only invest a tiny amount, it will help you get out on the right foot. If you save Rs 2000 per month for 30 years at a rate of 12% per year, you may amass around Rs 70 lakh.

Chandani has put together a brief checklist that any young adult can use to start saving:

Make a spending plan – The first step in determining whether you are spending on fundamental needs or luxury things is to create a monthly budget of revenue and costs.

Stick to the budget — You should save at least 25% of your monthly income, and sticking to the budget is an effective approach to do so.

Pay on time – Make sure you pay all of your bills on time.

Start Investing — Set aside funds from your monthly savings for investments that are predicted to increase in value over time.

Use the power of compounding to help you build wealth while being disciplined.

Protect yourself by purchasing a life and health insurance policy to cover any unexpected events.

Create an emergency fund separate from your everyday investments to cover unexpected needs and ensure that your savings are not drained.

Follow and connect with us on Facebook, LinkedIn & Twitter


Please enter your comment!
Please enter your name here