Youth Incorporated Magazine

There is no nicer feeling than holding your own paycheck in your hand for the first time in life. I am sure all the new earners will agree to this. The moment your first salary gets credited into your bank account, your mind starts racing with ideas of what you can do with it. Most of the time it thinks of ‘buying a gift for your parents from the money you earned’, and the rest of the ideas somewhat revolve around treating your friends to a nice meal or purchasing something you have been waiting way too long to buy. 

Spending most of your money from your first salary is not such a bag thing because it’s your first, but considering that the same amount is going to be credited into your account every month, you need to ask yourself two very important questions: 

What should I do with all this money? 

How can I put it to the right use? 

Money, when put to the right use, reaps great benefits. Since you have just stepped into the real world, it’s time you start taking small steps to build a secured future. Being a fresh graduate who is starting new, chances are that the amount you are earning will be minimal. Nevertheless, you need to put it to the right use. 

Here are a few simple things that you can easily do:

Take advice from the right people

Investing money might look simple, but can be a headache if gone wrong. Since you are starting new, it is always advisable to seek the help of someone who is well informed about financial investments. Firstly, talk to your parents and let them know you are thinking of putting money in the right use. Get their guidance and suggestion. Consult your family’s CA too if you have one. 

Open a recurring deposit account

This is the most basic and safest form of investment in the initial stage. Under this, a bank will allow you to deposit a fixed amount of money every month into the account and let you earn interest at the rate applicable to fixed deposits. All you have to do is, step into a bank, fill up a form to open an RD account and submit few documents. You can also do this online if your bank is offering online services.  

Invest in crypto

This is the newest and the most popular form of investment, especially among young people. It is also easy to invest in crypto. Before you jump right in, make sure you get the necessary information of how to start investing. Make sure you do your research, ensure you have a complete understanding of it before getting started. 

Maintain spend/save ratio

Once you start earning, expenses will follow. So it is impossible to eliminate all expenses altogether, but you must also be careful not to spend more than half of your salary. To avoid spending too much, set a spend/save ratio. Set an amount that you will save every month. Make sure that this amount is much higher than the amount you set to spend. Stick to it. 

Set goals

Set short-term as well as long-term goals that will motivate you to save money. A short-term goal can look something like being able to reach a huge amount of savings by the time you reach a certain age or being able to buy yourself a useful object/device like a laptop after a certain period of time. A long-term goal can be something as big and important as buying a house of your own. These goals will help you from getting sidetracked. 

Maintain a record of your expenses

Keep a book/e-book to list down all your expenses so that you know how much you have spent and when you need to stop. 

Sign up for an insurance

The least you can do is invest in health insurance, the benefits of which you can avail in the late future. 

While these are some very common ways to get started with investing your salary money, you can also explore a zillion other options that are available. Whatever you choose to do with your salary, make sure you make an informed decision that benefits you in the best way possible.