How to Plan Savings/Investments ? – for First Time Professionals


Whenever some graduate gets his first appointment letter, that is the day he begins his professional life & takes command of his financial responsibilities.  Not only his but of those as well who had been fulfilling all his needs till date – his parents, siblings & sometimes friends also.  This is the time when newly employed person is unaware about managing money & various questions further puzzle him like,

  • How to save/invest?
  • Where to save/invest?
  • How much to save/invest?

Let’s try to find answer to this puzzle & find safest way to save/invest.

To begin with, one should decide that they are in the job to work for a long time & do not have intentions of hopping around changing jobs as until this thing is ensured saving/investment cannot be done successfully.  Rather that saving/investment may turn into a liability in this scenario.  So, clear up the mind & take the plunge to swim across a sea & not a pool.

How to save/invest?

Break up your salary into different parts like :

Daily Expenses, required to carry out most essential activities like commuting (to office/client/home), communicating (mobile, internet etc), food (in case you are in marketing profession or residing outside home town) & other such expenses.

Long Term Expenses, are those which require certain fixed & huge amount like lodging (in case you are in marketing profession or residing outside home town), education (if intend to study further), clothing (no one buys them daily rather they are purchased in few months), entertainment (hanging out with friends occasionally) & other such expenses.

Savings can be done from the amount of money left after fulfilling all above expenses & keeping a certain amount aside for emergency situations.

Where to save/invest?

To begin with always go for the safest options available like Bank, Insurance, Post Office, Government Bonds & Government Schemes.  These options are the safest as they are backed by Government guarantee in case any organisation cannot sustain itself to serve (a rarest of rare situation) although return here is on the lower side (mostly 8% p.a.).

How much to save/invest?

Invest in small amounts on a regular basis like in R.D., S.I.P., Insurance etc. instead of investing in big regular/lump sum amounts.  This way a sense of responsibility & regularity developes within you.

Invest big regular/lump sum amounts only if you are sure enough that you will not need that money for the entire term of investment & you can sustain your living standard comfortably without that amount as well as can face any emergency with ease.

Another benefit of making multiple small savings/investments over single big regular saving/investment is that if anytime there is a financial crunch then single big regular will be affected badly whereas multiple small ones will provide you some cushion to save the most beneficial ones & look for saving the affected savings once you regain your financial stability.

Take your time while planning your saving’s/investment’s as some research & brain storming initially can lead to your long time financial stability & sustainability.

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