5 points for freshman

[Taroknath79]

what could be the 5 must have plannings
for freshers or salaried people (1-3 years of experienced) ??

 

[nikhilchauhan]

Are you talking about Investment plan?

 

[anuragmukherjee28]

what could be the 5 must have plannings
for freshers or salaried people (1-3 years of experienced) ??

1) invest in some mutual funds (SIP)
2) invest in term insurance and health insurance
3) save as much as possible in this period
4) after investment and savings enjoy a bit too
5) If you want to buy a property, you can start saving for it at this point and then buy it when you have saved a lot , don't fall for loans
6) avoid taking loans as much as possible

 

[ambarish.mondal]

1. Invest in yourself (To improve your primary skill)
2. Emergency fund building.
3. Insurances for you and your loved ones.
4. Investment according to your risk profile.
5. After keeping aside funds for above catagories and daily livelihood spend some on enjoyment and hobbies.

 

[Harsh Shah]

1. Invest in yourself (To improve your primary skill)
2. Emergency fund building.
3. Insurances for you and your loved ones.
4. Investment according to your risk profile.
5. After keeping aside funds for above catagories and daily livelihood spend some on enjoyment and hobbies.

nicely explained ambarish

 

[anuragmukherjee28]

1. Invest in yourself (To improve your primary skill)
2. Emergency fund building.
3. Insurances for you and your loved ones.
4. Investment according to your risk profile.
5. After keeping aside funds for above catagories and daily livelihood spend some on enjoyment and hobbies.

Yeah , emergency fund building is also a very crucial step

 

[jhaji]

I'm writing this from my experience,

1. Pay off your debt as soon as possible ( existing debt will effect your life and decision adversely)
2. Start SIP ( doesn't matter how small, it will teach a discipline)
3. Keep track of income and expenses
4. Take an insurance ( for future uncertainties)
5. Don' purchase something you don't need.

 

[anuragmukherjee28]

I'm writing this from my experience,

1. Pay off your debt as soon as possible ( existing debt will effect your life and decision adversely)
2. Start SIP ( doesn't matter how small, it will teach a discipline)
3. Keep track of income and expenses
4. Take an insurance ( for future uncertainties)
5. Don' purchase something you don't need.

Debt should be avoided at any cost , at this age , this is a great point, it would be so great if someone compile all the answers,it would help everyone

 

[Hema Kulkarni]

Would want to add upskilling to this list

I'm writing this from my experience,

1. Pay off your debt as soon as possible ( existing debt will effect your life and decision adversely)
2. Start SIP ( doesn't matter how small, it will teach a discipline)
3. Keep track of income and expenses
4. Take an insurance ( for future uncertainties)
5. Don' purchase something you don't need

 

[Hema Kulkarni]

1. Invest in yourself (To improve your primary skill)
2. Emergency fund building.
3. Insurances for you and your loved ones.
4. Investment according to your risk profile.
5. After keeping aside funds for above catagories and daily livelihood spend some on enjoyment and hobbies.

Would you keep Insurance at 3rd point or 2nd?

 

[arjungoyal12]

For day to day expenses, I have some questionnaire

how to budget every month
how to figure out relevant or non-relevant expenses
how to divide expenses
how to keep in mind that you are living the life you need and not flowing in want

 

[Dr.Ajay]

what could be the 5 must have plannings
for freshers or salaried people (1-3 years of experienced) ??

If you are looking to increase your salary or switch companies, consider taking online courses with certifications that will improve your profile. By switching companies, you can get a salary hike and joining bonus, and also receive an appraisal after completing one year in the new company. You should also have enough saved up for an emergency fund. Deposit this money in an FD in a small finance bank, as they usually offer higher interest rates on FDs compared to traditional banks. For instance, if you have saved up to 10 lakhs and have a better package, you should split this amount and do FDS in two small finance banks.

After setting up the emergency fund, you can invest the rest of the amount you save from your salary account. Make a sweeping FD from your salary account so you can enjoy the higher interest rates on them, and also fuel your SIPs from that account without breaking the full FD and incurring any charges on it. Specific goals, like owning a new car or buying a flat, can be your short-term and long-term goals, depending on your risk appetite. You can invest in index funds for long-term capital appreciation and mid-cap and small-cap funds for shorter-duration goals. You can also diversify your portfolio by investing in sovereign gold bonds and REITs, which are a good option for investing in real estate. You can make these investments from your demat account in a few steps.

Since you have invested a lot of money in the stock market, we suggest you take market-linked debentures to hedge your portfolio to protect the downside. If you are opting for the old tax regime, you can make use of 80c for tax savings, pay rent to your parents, claim the HRA allowance money from the company, take insurance policies for your parents, and show their medical expenses if any under 80D. You can also consider buying physical gold with lesser making charges, which gives you instant liquidity. Another way of investing in gold is to buy digital gold, which also appreciates over time.

If you have more savings left, you can set up SIPs when the market is down by a significant amount. For this, you need to track the indices like Nifty and Sensex. If you need funds for any emergency but don't want to redeem your stocks or investments, you can call chit funds, which gives you the option to redeem the amount without incurring much loss.

I hope these financial tips and tricks help you make better decisions and plan your investments well in advance for all those years ahead. NB: These are just my thoughts. I may be wrong in pointing out something. Please do your research further before making any big financial decisions.

 

[Hema Kulkarni]

If you are looking to increase your salary or switch companies, consider taking online courses with certifications that will improve your profile. By switching companies, you can get a salary hike and joining bonus, and also receive an appraisal after completing one year in the new company. You should also have enough saved up for an emergency fund. Deposit this money in an FD in a small finance bank, as they usually offer higher interest rates on FDs compared to traditional banks. For instance, if you have saved up to 10 lakhs and have a better package, you should split this amount and do FDS in two small finance banks.

After setting up the emergency fund, you can invest the rest of the amount you save from your salary account. Make a sweeping FD from your salary account so you can enjoy the higher interest rates on them, and also fuel your SIPs from that account without breaking the full FD and incurring any charges on it. Specific goals, like owning a new car or buying a flat, can be your short-term and long-term goals, depending on your risk appetite. You can invest in index funds for long-term capital appreciation and mid-cap and small-cap funds for shorter-duration goals. You can also diversify your portfolio by investing in sovereign gold bonds and REITs, which are a good option for investing in real estate. You can make these investments from your demat account in a few steps.

Since you have invested a lot of money in the stock market, we suggest you take market-linked debentures to hedge your portfolio to protect the downside. If you are opting for the old tax regime, you can make use of 80c for tax savings, pay rent to your parents, claim the HRA allowance money from the company, take insurance policies for your parents, and show their medical expenses if any under 80D. You can also consider buying physical gold with lesser making charges, which gives you instant liquidity. Another way of investing in gold is to buy digital gold, which also appreciates over time.

If you have more savings left, you can set up SIPs when the market is down by a significant amount. For this, you need to track the indices like Nifty and Sensex. If you need funds for any emergency but don't want to redeem your stocks or investments, you can call chit funds, which gives you the option to redeem the amount without incurring much loss.

I hope these financial tips and tricks help you make better decisions and plan your investments well in advance for all those years ahead. NB: These are just my thoughts. I may be wrong in pointing out something. Please do your research further before making any big financial decisions.

Hi @Dr.Ajay ,nicely summarised. Adding my 2 cents to the points mentioned above

1) I would advise to invest in Mid-Cal & Small-Cap for Long-Term Capital appreciation, instead of Index Funds. Mid-Cap and Small-Cap when invested for shorter durations, can become really volatile and hamper your returns.

2) I wouldn't recommend investing in MLDs due to recent changes in taxation (there is always Regulatory Risk with such instruments)

3) Adding both Physical Gold and SGBs to your portfolio make little sense. In my opinion, Physical Gold (even with ZERO making charges) can never act as an 'Investment'

4) Having money blocked in 'Chit Funds' is not recommended. There are very few 'decent' option in the market for this

Agree with your last point, do your own research before making any big financial decisions

 

[17ysaurabh]

I'll keep it short based on what I did.
1. Start following finance-related YouTube channels / social media accounts to stay updated.
2. Start financial planning. Decide how much salary you want to invest, save and spend. Clarity in each of these.
3. Invest in term insurance, health insurance for you and your parents (based on what sort of health insurance you are getting from your company)
4. Learn to save tax and be able to file your own ITR. For the freshers, it is not much complicated.
5. Get yourself a credit card to build a strong credit score. Not only It'll help you get cashback but in the long run, it'll help you get loans with less interest rates.

 

[anuragmukherjee28]

I'll keep it short based on what I did.
1. Start following finance-related YouTube channels / social media accounts to stay updated.
2. Start financial planning. Decide how much salary you want to invest, save and spend. Clarity in each of these.
3. Invest in term insurance, health insurance for you and your parents (based on what sort of health insurance you are getting from your company)
4. Learn to save tax and be able to file your own ITR. For the freshers, it is not much complicated.
5. Get yourself a credit card to build a strong credit score. Not only It'll help you get cashback but in the long run, it'll help you get loans with less interest rates.

I want to clarify your point 1
just try to learn from the channels and not follow everything they are saying or promoting ( this is very important)

 

[Abhiuday]

Hi @Dr.Ajay ,nicely summarised. Adding my 2 cents to the points mentioned above

1) I would advise to invest in Mid-Cal & Small-Cap for Long-Term Capital appreciation, instead of Index Funds. Mid-Cap and Small-Cap when invested for shorter durations, can become really volatile and hamper your returns.

2) I wouldn't recommend investing in MLDs due to recent changes in taxation (there is always Regulatory Risk with such instruments)

3) Adding both Physical Gold and SGBs to your portfolio make little sense. In my opinion, Physical Gold (even with ZERO making charges) can never act as an 'Investment'

4) Having money blocked in 'Chit Funds' is not recommended. There are very few 'decent' option in the market for this

Agree with your last point, do your own research before making any big financial decisions

Hey, I wanted to know how safe are mid cap and small cap MFs if i am an early investor ?

 

[Hema Kulkarni]

Hey, I wanted to know how safe are mid cap and small cap MFs if i am an early investor ?

You can follow this thread for answer

Are Smallcaps and Midcaps Overheated?

Over the last decade, Small-Midcaps have been the best-performing equity class. Do you think they are due for a correction now, should be exercise caution before investing in Small Caps going forward?

bekifaayati.co

 

[Badre Alam]

That is completely depends on an individual situation.
Example
1) If your are from we'll to do family, you don't carry any responsibility towards your family bread and butter or anything like that you should invest in yourself.
Enhancing your skill and knowledge would be great investment.

2) if your have responsibilities then how much money your required for you responsibilities how much your are earning the are many expect to considers before any financial planning.

So simply, examples and solutions would be endless But To highlight one thing I would say as soon as you started earning regardless of situations you should first invest in a good health insurance plan .

 

[survivor37]

If you are looking to increase your salary or switch companies, consider taking online courses with certifications that will improve your profile. By switching companies, you can get a salary hike and joining bonus, and also receive an appraisal after completing one year in the new company. You should also have enough saved up for an emergency fund. Deposit this money in an FD in a small finance bank, as they usually offer higher interest rates on FDs compared to traditional banks. For instance, if you have saved up to 10 lakhs and have a better package, you should split this amount and do FDS in two small finance banks.

After setting up the emergency fund, you can invest the rest of the amount you save from your salary account. Make a sweeping FD from your salary account so you can enjoy the higher interest rates on them, and also fuel your SIPs from that account without breaking the full FD and incurring any charges on it. Specific goals, like owning a new car or buying a flat, can be your short-term and long-term goals, depending on your risk appetite. You can invest in index funds for long-term capital appreciation and mid-cap and small-cap funds for shorter-duration goals. You can also diversify your portfolio by investing in sovereign gold bonds and REITs, which are a good option for investing in real estate. You can make these investments from your demat account in a few steps.

Since you have invested a lot of money in the stock market, we suggest you take market-linked debentures to hedge your portfolio to protect the downside. If you are opting for the old tax regime, you can make use of 80c for tax savings, pay rent to your parents, claim the HRA allowance money from the company, take insurance policies for your parents, and show their medical expenses if any under 80D. You can also consider buying physical gold with lesser making charges, which gives you instant liquidity. Another way of investing in gold is to buy digital gold, which also appreciates over time.

If you have more savings left, you can set up SIPs when the market is down by a significant amount. For this, you need to track the indices like Nifty and Sensex. If you need funds for any emergency but don't want to redeem your stocks or investments, you can call chit funds, which gives you the option to redeem the amount without incurring much loss.

I hope these financial tips and tricks help you make better decisions and plan your investments well in advance for all those years ahead. NB: These are just my thoughts. I may be wrong in pointing out something. Please do your research further before making any big financial decisions.

Crisp and concise.. Good one