1 year in first job, please help me assess and improve

1. All expenses are justified if you are disciplined with your savings and investing. Don’t miss out on present just to save for future. You’ll miss the best years of your life. Invest and spend are the two things you should do. They go side by side. What I do is for all my luxury purchases is I take EMIs and a counter amount gets added to my SIPs as well. When I bought my car, my EMI was 40k, I increased my SIP by 25k (so my decision of car was based on whether I can spend 65k more or not rather than 40k) 2. Insurances are critical- you block your premium at a young age for life insurance, so do it as early as possible and as big a number as possible, take all riders like critical illness, etc. Health insurance premiums increase as you age, and is dependent on who’s the oldest being insured. You can have 2 insurances- one for parents, one for self but that doesn’t matter only more money out of your pocket. Do not take any riders along with health insurance.

The expenses are totally justified. From how much u were able to save, I don’t see any issue. Get term and health insurance. It’s cheaper the younger you are. Ur health insurance should be separate from ur parent’s as premium takes into account the eldest in a policy something like that. So have ur own health insurance other than company’s and take out health insurance for ur parents as well if they don’t have. Assuming ur brother is earning well too, enjoy ur life and spend on family.

31% increment kon si company hai bhai?

One year into earning and I'm really glad you have this question. I wanted to share a simple approach that helped me manage my money effectively while still enjoying life. Here’s a breakdown of how you can spend your salary: The 3-Category Rule: 1. Needs (30-50%): These are your essential expenses – the things you can't live without. Aim to keep this between 30-50% of your income. - Examples: Rent, groceries, utilities, loans transportation, insurance, and medical expenses. - Why: Prioritizing your needs ensures that you have a stable foundation. It covers your basic necessities and helps avoid any financial stress related to essential living costs. 2. Wants (20-30%): These are the things that make life enjoyable and fun. Aim to allocate 20-30% of your income to wants. - Examples: Eating out, entertainment, travel, shopping, and hobbies. - Why: Life is meant to be enjoyed! Spending on wants allows you to reward yourself and enjoy your hard-earned money without feeling guilty. It’s all about balance. 3. Investments (20-30%): This is for your future. Aim to put 20-30% of your income into savings and investments. - Examples: Mutual funds, stocks, emergency funds, travel funds, education funds and retirement savings. - Why: Investing in your future is crucial. It helps you build wealth, achieve financial independence, and ensures that you’re prepared for any unexpected expenses or opportunities. I hope this is helpful. It helped many of my friends and colleagues.

@PapaPapaya I have been working many years now. I saved and invested good chunk of my earnings in the initial stage of my career Few words of advice for you: Investing is important so does spending on things you love. Now a days all the financial influencer’s are busy selling saving and investment ideas and showcasing how does small amounts saved today turns into crores. Look at their lifestyle. They sell these products to you for their own income and lifestyle and buy expensive homes, holiday and cars. While investing is required but you need to equally understand you have your age by your side and the energy and the enthusiasm that comes along with it. If you sacrifice your needs today on yourself and your loved ones, all you end up at later point is junk load of money. All though for some of you this might be more enticing but after all those years your mentality would already be affected. You won’t spend the money and eventually the money you accumulated will only used as a bragging point among your friends and relatives and eventually land into your kids hands, who then live a comfortable life all thanks to you 🙏 For all those who give an example of Mr. Buffet, who made fortune saving and investing since early years, look at what he did even after he has billions. It’s not worth it. All I would tell you, 1. spend on things that makes you happy, that may be bikes, shopping, travel, family and what not. (This is what matters) 2. In the meanwhile continue your investing journey, learn to manage risks. At your age you can have good portion of investment on equity, for safety and diversification I prefer Gold and FD. 3. Stop PPF 4. Once you accumulate good portion of money, move some of the funds to real estate. Real estate requires large amounts so take your time. Avoid personal loans 5. Avoid life insurance. You only need good health insurance for you and dependents. After this you can buy a term insurance.

where do you work ? tell me about your education please.

My 2 Rupees: 1. Saving mindset: as you are new to savings, it's important for you to develop the saving mindset. It's important to understand the difference between needs and wants. 2. Gauge expenses: I imagine that you may not have many fixed expenses, but understand what are the deductions that happen every month and what you are left with. This amount is based on your needs - but keep a small margin here for wants. 3. Planning: now your savings and investments would need to be bucketed based on some tough questions (what are my plans for the future? How much do I need to achieve these goals). This is personal for everyone 4. Dont listen to everyone - its about what fits you. Seek advice, study and learn - and create your own plan While you should not do this, I am sharing my personal perspective on what I would do if I were in your place: 1. Savings: need to build about 5-6 months cash that is accessible for emergencies (I use au bank for their monthly interest payouts) 2.Govt schemes - look at pfs and other govt schemes to save. Insurance can also help here 3. Investments - equity in the form of stocks/ mfs/ sips etc. i would keep the rest here Lastly, if I were you, I'd have spent more! But that's me ;) You're doing really well! Enjoy!

What's your alma mater, seems like a tier 1

What about taxes? Investing in NPS givis you additional 15000 tax savings, as you are already in 30% tax slab

Hii, why do you have 4.5L in your savings account? 🤔

You are doing great kid. Enjoy your life

My saving -50000

Don't underestimate life insurance. Just as you mentioned, if your parents are getting older and if there's any dependency on you for anything, it's better to get a nominal insurance. Atleast term insurance. Hope it's useless but pay it anyway. Don't think I need to say any further.

Salary is still on the lower side bro. Need to buck up

You should definitely have a personal health insurance despite having a corporate cover. We have covered the key reasons on this post: https://www.linkedin.com/posts/simpleinsure_why-your-corporate-health-insurance-might-activity-7208432815888093184-7XrS? Also best to get term insurance early as well as premiums would be significantly cheaper for you.

If you really want money in savings account then either put it in liquid fund , or some high interest bank like idfc first bank which gives 7% interest for 5L and above balance

You need to build your emergency fund before investing anywhere else It should be ideally 6 months of your take home Also can you please share your college and company

People are literally saving! 🤧

In Which company do you work bro? And on what tech?

Which company bruh