It is a euphoric feeling when you get your first salary in hand. The financial independence comes with a lot of freedom and lot of lessons. The first lesson is how not overspend and to learn financial planning. I remember when I had gotten a job during the last semester of my engineering, my mom had started to educate me on financial literacy. Whew! It felt like I had entered an adult world.
Today, this information is much more easily available at our fingertips, thanks to Quora and other finance websites. I really like how people share their investment tips and knowledge for the beginners. So, I thought I would share a bit of my knowledge though I hardly know a lot about mutual funds and share markets. So, let’s see what I have.
Create a Budget
This might take you a few months to figure out depending on your living conditions and expenses incurred. Always start with listing out your expenses from the first month itself. You can always add to the list later if you do not anticipate something. This will give you an idea of how much you need to spend towards your living expenses.
Divide Your Income
Depending on the budget created, you can create divide your income into expenses, savings, investment options and luxury segments. Always create the habit of saving before spending. Howsoever little you might be earning (if you are doing internship), you can always save 5-10% of your salary barring the living expenses. If you are earning a decent salary (say above 20k), lock 20-30% of the amount every month depending on your budget.
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