Today, people studying engineering, medical or other profession from good college do not have difficulty in getting jobs. Not only this, companies are also offering very good salary nowadays. If someone or someone in your family has a new job, then he should not delay in financial planning. This will make a very good fund for you after 14-15 years. Experts say that the more you do the finance planning, the more benefit you will benefit.
1. Understand your current financial situation
First of all you have to try to understand your current financial situation. You have to see how much your total income is and how much your responsibilities are. The responsibilities of people starting the job are different. Most people have no responsibility, while some people have the responsibility of their parents or siblings.
2. Set your financial target
After understanding your responsibility and income, you have to set short term, medium term and long term goals. For example, buying a car can be your short term target. Children’s education can be medium term target, while retirement planning will be long -term target. You have to prepare funds according to every goal.
3. Create practical budget
The third step will be a budget that is practical. Many people spend first, then think of savings and investment. The intelligence is that first money should be withdrawn from income for savings and investment, then money should be fixed for expenses. It is necessary to balance between investment and necessary expenses.
4. Make Emergency Fund
You have to withdraw some money from your income to make emergency funds every month. Emergency funds should be sufficient for your spending of at least six months. For example, if your monthly salary is 1 lakh rupees, then your emergency fund should have 6 lakh rupees. You can use your variable pay or bonus to make this fund.
5. Term and Health Policy
Term and health policy are very important for yourself. The biggest advantage of taking term life insurance policy at an early age is that your premium will be very low. This premium will remain fixed as long as your policy will continue. This benefit is not with health insurance. However, health insurance will save you from the huge bill of the hospital when he suddenly falls ill.
6. Finally you have to focus on savings and investment for your financial goal. For long -term objective you can start contribution in NPS. You can start investing in the equity scheme of mutual funds to buy medium term ie children’s education or home. For the short term, you can invest from the bank’s recurring deposits from SIP in the scheme of hybrid mutual funds.