There comes a day in everyone’s life which gives immense joy and that is a day when you have in your hand first day salary. It is a day which gives you feeling of confidence as you have stood up on your own feet. However, after few months if you have not trained yourself in the area of financial planning, your present as well as your future would affect drastically. So this article is emphasis on how you should develop various habits related to your earnings.
Following are the Habits that New earners should install or work upon:-
• Planning is a key
Anything you want to start or act upon requires planning. Plan gives you direction. Moreover it should be written on a piece paper instead of keeping it on your cell phone. The things that are planned are only get it done.
• Invest first then Save
Whatever your responsibilities you cannot escape to invest some part of your earnings every time. Decide the percentage of your earnings that should be going into your investment on monthly basis. Like if you are earning monthly say Rs.10,000/-, 20% of Rs.10,000/- which comes Rs.2,000/- should be directly go into your investment kitty. Then you start expending.
• Low income is not an excuse
Low income should not be your excuse for not been able to invest. As said above even if you are earning say Rs.10,000/- per month and not able to invest 20% of the part of it due to your family responsibility, you can still take out 5% which comes to Rs.500/-. Still if you feel you cannot afford 5% too, even then you can go for 2.5% which comes to Rs.250/-. Here it is not important what you can able to keep aside from your monthly earning for your investment but rather than it is more important that you will able to install habit of keeping aside some part of your monthly earning for investment.
• Divide your Goals
Everyone has different types of goals. While financial planning it is utmost important that you should able to recognize and divide your goals as short term, midterm and long term. Once you get this done you will have more clear picture about your financial needs and you will able to priorities them.
• Plan for retirement too
Once you install habit of regular investment and savings, you can start work on your retirement planning too. One can say here that in younger age why we should worry about retirement now. Here also what is important is to get into the habit of plan for retirement at your younger age so that your retirement becomes secured.
Hope the article helps younger generation to start their financial planning.