Saving and Investment Tips for First Time Earner: With the start of the first job, some people give priority to fulfilling their needs. Sometimes due to this habit of spending, savings are not even able to be saved and it is known in future when suddenly financial problem arises. In such a situation, it is important that with the start of your first job, you should start saving and investing.
The advantage of starting investments at an early age is that when financial responsibilities increase, you do not have money problems. There is a simple fund of investment that the sooner you start investing, the more secure the future will be. By investing early, you can make more capital by investing for a longer period. In such a situation, it is better to start with the first job.
Retirement Planning: Keep in mind the effect of inflation in retirement planning, can investing in stocks be the way to avoid inflation?
take care of these things
- Monitor your bank statements from time to time to control your expenses. This can help in controlling unnecessary expenses.
- With the first job, many people get a credit card for the first time and they keep using it as a magic lamp. However, if the bill for its expenses is not paid on time, it can be very heavy on the pocket. In such a situation, it is important to pay the credit card bill on time. If possible, you can also get it auto debited from the account so that there is no chance of forgetting it due to any reason.
- The problem of some people regarding investment is that they want to invest but nothing is left. To overcome such a problem, first the formula of saving, then investment should be adopted. With this, the savings money can be used for investment and the limit will also be fixed on how much to spend.
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- Invest some money in equity and mutual funds as well. In the beginning of the job, the ability to take risk is high, so some money should also be invested in equity. You can get the highest return on investment in equities. Apart from this, if investing in the stock market is intimidating in the beginning, then you can invest in SIP (Systematic Investment Fund).
- Never invest the entire capital in one place. Always diversify your investment portfolio and invest by dividing your capital across options like Equity, Mutual Funds, Shares, Gold and FDs. With this, if there is a shortfall in investment in one place due to market volatility, then it can be quickly compensated by investing in another option.
- Also invest in instruments like PPF. In this, tax savings can be made on investments up to Rs 1.5 lakh annually.