Financial Habits to Start With Your First Job
Your first job is probably one of the biggest milestones in your life. At this stage of life, not many people think of financial planning and long-term financial goals.
But, it is important to consider the above factors and take the necessary steps to keep your financial life in order. You can ensure this by following a few financial habits right from your first job. So, let us see what these habits are.
Contingency amount is the amount that you must set aside for a financial crisis like medical emergency or situations when you do not have a secured job. If any day you lose your job or have to give up your job, that time contingency amount would make things easier for you. It is advisable to keep aside the expenses of 3 months in the savings account till you get started with a new job.
Systematic Investment Plan or SIP is a good habit to invest and save your money. You may consider investing fixed instalments of money in the mutual funds via SIP. This investment habit will make you a disciplined investor and you can make good returns in the long run.
Purchase Health Insurance
Health Insurance policy is another investment that you must add to your kitty. You might not pay attention to it in your younger life or when you feel yourself to be fit but illness and disease can hit you at any stage of life. It is always good to remain prepared for that. Healthcare cost can drain out all your savings if you don’t have a health insurance plan in place.
Invest In Equity
Investing in the right asset class is important to earn good returns in the future. Investing in the stock market or equities is the best way to grow your money. The stock market holdsthe potential to multiply your returns. All you have to do is, select the right company to invest in or take the help of a professional while infusing money in the stock market. In order to invest in equity, you need a demat account. You may consider opening a 3 in 1 account with Kotak Securities.
Starting with investment at an early age will help you reap the real benefits of compounding. Try to start investing right from the time when you receive your first income. With disciplined investing and compounded returns, you can make maximum money with minimum efforts. Start to think about long term goals from the age of 25 years. This will help you live a financially independent life after your retirement.
Getting a good job is important but it is equally important to manage the earned money and save it in order to be successful and build wealth over time. The above-mentioned habits will help you lead to the path of financial success.