Just started your first job? Here’s a primer on financial planning
One of the most memorable milestones for you when you are young, is getting your first job! This is when you enjoy financial independence for the very first time and start taking up more responsibilities. And, most importantly, you begin your savings journey. Now, it is important to look at the bigger picture while we reflect on the significance of savings. Saving for your life goals is not just restricted to keeping aside some of the money you earn, but also create a corpus for the times when you may not have a regular income.
This is why, retirement planning also plays an important role in saving up for your life goals. Having said that, retirement benefits in India are not necessarily helpful in doing so. The formal retirement coverage in India is severely inadequate, with only 9-10% of the population estimated to have any pension benefits. So, if you have just landed in your first job in this so-called pensionless generation, you need to take control of your finances and investment goals from the beginning.
Now, the question is, where do you start? Your savings journey begins with picking the right investment tool which can help you in prudent financial planning, and financial products such as the ones available on Finserv MARKETS let you do just that! Apart from this, there are some key steps you should follow to secure your new-found financial independence! Here’s a cheat sheet on what financial steps you should take after receiving your first paycheck:
1. Make a budget and track your expenses:
Now that you are aware of your monthly take home salary, it’s time you start monitoring it and budget your expenses accordingly. Take care of your mandatory spends like rent and food and so on, before spending on lifestyle expenses. Learn to keep a track of your money and do not spend more than your income.
2. Set goals:
This is just the right time to figure out your short-term & medium-term investment goals. Your short-term goals may include paying off your education loan, while medium-term targets could be about traveling to your dream destination! While you do so, this is just the right time to start thinking about your long-term goals too. These could include saving up to fund your higher education. Charting out a financial journey and working towards that is important.
3. Stay financially prepared:
Nothing impacts your life savings as severely as an emergency! Hence, staying financially prepared is the key. With insurance plans, you can stay covered against life’s financial ups and downs. This is why health insurance should be a top priority to protect yourself from those huge medical expenses that you cannot possibly afford. Platforms like Finserv MARKETS make getting health insurance easy and quick. With a wide range of health insurance plans available at affordable rates, you can rest assured. Apart from this, consider getting a term insurance plan too. When bought at an early age, term insurance is easy on your pocket. This is because, the younger you are, the healthier you will be and thereby your premium will be lesser.,.
4. Start saving for long-term goals:
Like most good things in life, wealth creation too, takes its own time. Therefore, you should invest in your long-term goals and start saving towards your long-term life goals or post retirement goals right from an early age. Apart from provident funds and pension plans, you can also invest in ULIPs that come with different variants that are designed to suit your needs, such as a ULIP investment plan or a ULIP retirement plan. Finserv MARKETS has some of the best ULIPS in the market that help you achieve your life goals efficiently by offering market-linked returns.
5. Designate your beneficiaries:
Insurance plans that are available in the market are designed in such a way that providing a nomination is mandatory while buying a plan. Naming a beneficiary for all your other financial instruments is crucial. This is a basic financial task you will have to revisit with time, as you progress through various life stages. For now, you will probably want to name your parents or siblings in all these accounts.
In a nutshell
After you have done all this, you will realize that this is just the beginning of the journey towards wealth creation for all your life goals. You can create a prudent plan for the future with the help of an array of financial planning products available on Finserv MARKETS. Choose from a wide range of health insurance plans and investment options like ULIPs, offered to you by multiple partners! So why wait? Take the first step towards your financially secure future, today!