{"id":7059,"date":"2021-06-16T07:44:00","date_gmt":"2021-06-16T02:14:00","guid":{"rendered":"http:\/\/www.apnaplan.com\/?p=7059"},"modified":"2021-06-16T18:39:43","modified_gmt":"2021-06-16T13:09:43","slug":"15-personal-finance-tips-for-your-first-job","status":"publish","type":"post","link":"https:\/\/www.apnaplan.com\/15-personal-finance-tips-for-your-first-job\/","title":{"rendered":"15 Personal Finance Tips for your First Job"},"content":{"rendered":"\n
Its June and most of the recruits from the campus would have joined or going to join in few months on their first job. Its a moment to rejoice and for many a first time experience of earning money. But Net-worth of a person<\/strong> is not by what he earns but by what he saves and invests.<\/p>\n\n\n\n Work for money but also learn how to make money work for you!<\/p><\/blockquote>\n\n\n\n Here are some pointers on what you should do after you join your job.<\/p>\n\n\n\n While passing out from campus many people tend to overspend on few rounds of booze party and much more :). As most of these expenses are not budgeted for \u2013 people generally borrow from friends or close relatives\/cousins. The amount is not huge but you should pay all those dues in next few months. They not only give credibility about your financial discipline but also have options open in case of financial emergencies in future<\/strong>. This also includes the small shops and eateries around your institute.<\/p>\n\n\n\n Salary components and salary structure plays a very important role in how much income tax you pay. We have come up with some optimised salary structure using which you pay NO income tax even with CTC of more than Rs 20 Lakhs<\/a>.<\/p><\/div><\/div>\n\n\n\n Most companies offer group health insurance to their employees \u2013 free or paid. Even if it\u2019s paid, opt for it<\/strong>. As employers are big customers for these health insurance companies, settlement of claims is easier. Also include your parents if they do not have health insurance cover. In most cases, the employer provided insurance turns out to be cheaper and covers everything without much exclusions\/complications. In case of any dispute your HR department can negotiate with the insurer. The added advantage you save tax on premium paid for health insurance<\/a> for self and also for your parents.<\/p>\n\n\n\n As you have started earning, the expectation is you would not want to ideally borrow from your friends or family. So start saving for emergencies<\/a>. People fall sick, bikes\/cars break down, salaries are delayed or you might need to take an urgent trip. Start putting some amount in savings account or fixed deposits every month which can be easily accessed at the time of emergency. Depending on your support system and access to credit card you should try to have emergency fund equivalent to 3 to 6 month\u2019s expenses.<\/p>\n\n\n\n Life insurance premium is cheaper at younger age. Also getting life insurance is easier as you tend to relatively healthier and disease free at younger age. You need insurance only if you have dependents or have loan outstanding. Also do not get conned in investing in ULIPs\/traditional life insurance plans. Go for online term insurance only<\/strong> \u2013 it would be cheaper and there are less chances of error while filling the form. Here are some helpful tips on buying life insurance.<\/a><\/p>\n\n\n\n There can be several short, medium and long term goals. Short term goals might be buying yourself bike\/car, medium term might be saving for marriage\/paying education loan and long term could be saving for retirement. These are just examples and you can start listing down your own goals. Start saving and investing accordingly<\/strong>. Consult investment experts in case it seems too complicated. Here are some tips:<\/p>\n\n\n\n There is always a debate on what is the right way to invest in Mutual Funds – SIP or lumpsum? We give you examples and situations on which of the investment method outperforms. Do read SIP Vs. Lumpsum \u2013 Which is the Best way to Invest in Mutual Fund?<\/a><\/p> Additionally Read about common myths about SIP investment in Mutual Funds<\/a><\/p><\/div><\/div>\n\n\n\n Most people believe that Savings = Income – Expenses which means there is no plan to save – whatever is left after all expenses is Savings. You need to change this attitude – make your investments (Savings) first and manage your expenses from what is left. You would be surprised that in most cases you would be able to manage. If you find it difficult to invest, automate the process – start SIP in Mutual Fund or invest in Recurring Deposit<\/a>. The amount would be automatically deducted from account and you would be surprised to learn that you can still manage your expenses without any considerable impact on your living standard.<\/p>\n\n\n\nPay your Petty Debts<\/h2>\n\n\n\n
How to Pay 0 Income Tax on Salary of Rs 20+ Lakh?<\/strong><\/h4>
Get Health Insurance<\/h2>\n\n\n\n
Build you Emergency Cash cushion<\/h2>\n\n\n\n
Get Term Life Insurance<\/h2>\n\n\n\n
Start Investing<\/h2>\n\n\n\n
SIP Vs. Lumpsum \u2013 Which is the Best way to Invest in Mutual Fund?<\/strong><\/h4>
Learn Income – Saving = Expenses<\/h2>\n\n\n\n