Ways to Save, Starting with Your First Pay Cheque
July 01, 2020
Receiving the first-ever pay cheque is an unforgettable memory for a working professional. You may have planned a bucket list that you want to fulfil with your first salary. It is good, but you should also think about savings. Read further to know what you should start doing when you get your salary for the first time.
For any individual when they step into the earning phase of life, getting the first-ever full-time job is an exciting and unforgettable experience. This is the time when you get categorised as financially independent as all your hard work gets paid off. You land your first job, but the most exciting part about starting your career is earning money.
If you ask any working professional, they will always remember their first pay cheque, which they received for their first job. When you start earning, you need to be financially responsible, so that you can face the upcoming phases of life by being financially confident.
Here are Some Off the Ways to Save When You Get Your First Pay Cheque:
- You Should Create A Monthly Budget: The initial salary may seem to be endless surplus cash, but you never know when it may get exhausted. Therefore, the first and foremost rule of being a working professional is to create a monthly budget. Prepare an expenses sheet where you can list down your needs to allocate and spend money accordingly.
- You Should Set Up Smart Deposits: As soon as you start earning, you should open a Savings Account,Fixed Deposit (FD) or a Recurring Deposit (RD) Account to keep your money secured. If you’re opening FD or RD, you will receive interest earnings through the compounding effect, as well as save on tax. In case, you’re looking forward to setting up a tax saving FD or RD Account, ICICI Bank offers attractive interest rates. You can start saving Rs<10,000> as a one-time deposit.
- You Should Pay Back Loans: If you have taken an Education Loan for higher studies, now is the time to repay the loan amount. You need to pay the loan EMIs on time to ensure a decent credit score. If your debt amount is too high, you can create and save a certain amount to pay off debts. For this, you need to be strict on your spending level.
- You Should Buy Life Insurance: When you’re a single earning member with dependent parents to take care of, then buying a life insurance policy for you and your parents is of utmost importance. A life insurance policy will ensure that your parents remain financially secured even in your absence. It is crucial to save your family from financial troubles.
- You Should Save For Retirement: You should start saving for retirement from the time you start working. Amongst all the long-term goals like marriage, owning a home or buying a car; retirement often takes a backseat. Start small but don’t ignore retirement planning.
- Never Forget to Treat Yourself: Besides saving and being financially inclined for the next phases of life, don’t forget to treat yourself. Set aside an amount each month that you can spend on fun activities.
Saving and investing for the future may seem to be a distant responsibility for first-time working professionals. But if you follow the above tips, you will be able to enjoy throughout your life.
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