What Should We Do with Our First Salary ?

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What Should We Do with Our First Salary ?

What Should We Do with Our First Salary ?

Few days before I have heard that one person has donated his first salary for charity. 
I felt good that only few peoples can do this. Do you remember that what you have done for your first salary. I think you may be went with your family to watch the movie in mall or for candle night dinner in hotel. It may be possible that you have spent your most of first salary to party with your childhood friends. Some peoples may be used there first salary to pay their loans. Some peoples may bought some new clothes after they got their first salary. Some people may have done best thing that they have given their first salary in their mothers hand.Their is nothing greater than giving first salary in your mothers hand.I was talking with my one of the best friend few days before. He had told me one of the best thing about first salary. He told me that the person who saved some amout from his first salary he never gets shortage of money in his whole life.He told me that one of the most important thing in his life that the person who is not able to save from his first salary. He is not able to save in his whole life time what ever money he had earned. How much is the reality in this talk I left this decision is totally upon you.But first salary is the indication that now you are Rich. First salary is the indication that now you are not dependent on your parents for your basic needs. First salary is the indication that now you have to take responsibility of yourself. First salay will give your confidance that now you can take the responsbility of your family. Besides this first salary is the indication that how person works, what are his qualities and how hard working is he/she. First Salary is not very big amount but when we got our first salary big question arises in our mind how to spend our first Salary.


Start of New Life 

First salary is the indication of start of new life. Its the begining of new life. Its that time you feel that its begining of achieving your dream and you have to go ahead on this road. Every person has different opinion how to spend your first salary . But experts says that you should have big vision for investment from the start of your first salary. Your lot of financial problems can be solved in future by start of small investment in any investment plan. After all the ocean fills with drops. When we start journey of thousand miles it start with one small steps. 

Starting Phase of Plans 

People says that any person will never forget his first job in his whole lifetime. Its always remember in his life like one of the best memory. How anyone can forget the challenges in his first job like stress, question and step into new world. Any person will never forget his first salary after he gets the long wait of 30 days. Often first salary is very small amount but people will always keep its memory in his whole life time. It may be possible that some old age person in your family say that he got his first salary is 50 Rupees and lost in sweet memories. We get very small amount in our first salary. So we think that its not very big amount we can do big things. So we spends our first Salary for buying small things and household expenses. Lot of people will never think to save some amount from his first salary. I bet on that hardly any person may think to save from his first salary and invest some where. 
         But not only we should start making investment plan but also start achieving financial goals. First salary is the indication that time has come for financial planning in our life. You have not make plan for investment till now no problem. But now make the investment plan for financial planning. It will be very difficult to save the money in the start of few months but it will work like foundation in the coming future. If any person is not making financial planning from his first salary then it may be possible that he will be in debt trap in coming future. Because expense burden will be increase day by day. If you want to get rid of such problems in life them you should make list of monthly expenses. This expense list will not only tell you that how much you have to spend in this month but also how much money you can save in this month. How much money you can invest in this month for your future needs.

Buy Health Insurance Plan

If your Employer has not provided you facility for the Health Insurance then you must buy personal Health Insurance Policy for you and your family. If you buy Health Insurance Policy at younger age then health insurance companies charge very less premium for health insurance policies. Nobody know that when he will get sick and he need to get admitted in hospital. In such situation Health Insurance Policy will pay all the medical expenses when you get hospitalised in hospital. 

Buy Term Insurance Plan 

If some family members are depend upon you financially then you must buy Term Insurance Plan also. If somebody dies accidently then this term insurance plan will help his family members for all their financial needs. If you buy Health Insurance Policy and Term Insurance Policy in your first salary then it will help you to manage your expenses in long term. 

Start Saving Money for Retirement 

You will say that I have started the job now and you are talking about retirement plan. It sounds bits a strange but its necessary to save for your retirement life after you get your first salary. If you plan for your retirement from your first salary then you will be successful in accumulating lot of fund after your retirement. You can invest 5% of your monthly salary in your Retirement Fund. You can take advise from any CFP  for making your Retirement planning. Buy doing this you can accumulate lot of money for your retirement and enjoy your prosperous life after retirement.

Start a Emergency Fund 

You should start accumulating Emergency Fund when you get your first salary. You should invest 15% of your monthly income in Emergency Fund account. You should have minimum 6 months Expenses in your Emergency Fund account. 

What Should We Do with Our First Salary ? 

First salary is the indication that in our life time has come to do financial planning.

In starting few months it will be very difficult for us. But for futute it will work like milestone for us.

When we got our first salary we should utilise it to make Emergency Fund.

If your employer had not provided you Health Insurance Policy. Then you should first buy Health
Insurance Policy.

You can start Investing 5% amount of your first salary for Retirement Fund.

                        

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4 Comments

Unknown said…
Why you are saying "peoples" repeatedly in your article.. There is no word called peoples in english.. people itself is the plural dude..
Traveller Ram said…
Thanks for your suggestions. Next time onwards I will follow your suggestions.
Traveller Ram said…
Thanks for your valuable feedback

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