Financial Tips for Young Earners

June 19, 2023
DD Planet

Young adults who have just commenced their careers and smelt their earned money should not wait beyond six months for their financial planning.

Here are the tips to help the young earners start their financial journey:

1. Gain sufficient knowledge on managing personal finance.
2. Define your financial goals.
3. Do not believe that you’re just starting your career and there is a lot of time there for you to think about finances. The earlier you start, the longer you go and the sooner you reach your goals.
4. Learn budgeting – budgeting your expenses and budgeting for your goals.
5. Save as much as is feasible after you’ve spent on your needs and basic wants.
6. Use credit cards wisely. It should be primarily used for building a good credit score and within limits so that you can pay your dues on time without paying any interest or late fees.
7. Do not get into the habit of impulsive buying.
8. Limit your debt and avoid personal loans. In fact, at this stage you should think about some loan only if it is utterly essential, for example, an education loan.
9. Create an emergency fund.
10. Start your retirement planning right away.
11. Avail all tax saving options that are available to you.
12. Track your expenses and learn self-control.
13. Start investing and diversify it.
14. If you lack time or are unable to keep track of your investments, simply opt for Systematic Investment Planning (SIP) or Automatic transfer of money to the investments you choose.
15. Don’t fall for ponzi schemes that offer you unreasonable returns.