If you have just started earning, congratulations. You are not just entering the workforce. You are entering the world of financial choices. And the decisions you make in the first three years will echo for decades.
The first step is security. Before any investment, build a basic emergency fund. This should cover at least three months of your expenses and be kept in a high-interest savings account or liquid mutual fund.
Next, get health insurance. Do not rely on your employer’s group policy. A personal cover gives you freedom during job switches and ensures your savings are not wiped out by one medical emergency.
Now comes investing. Start small but start immediately. A ₹500 monthly SIP into a mutual fund is perfect. Use apps that allow auto-debit so you never skip a month. As your income grows, increase your SIP amount every six months.
Budget using the 50-30-20 rule. Half your income should go to essentials like rent and bills. Thirty percent can be used for lifestyle and goals. Twenty percent must go into saving or investing.
Explore asset classes gradually. Start with mutual funds and ETFs. Learn about digital gold, REITs, and eventually equity. But always invest what you understand.
Avoid debt for lifestyle upgrades. And never treat investment as a one-time event. It is a habit. The earlier you build it, the easier it gets.
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