Step-2: Creating an Emergency Reserve Fund of at least your 3 months Salary is your First Objective, as soon you start earning. This should take no more than 6 months of after you start working. Always maintain atleast 2 months Salary as reserve. 1 month's extra saving is for utilizing for starting Step-3&4
Step-3: once you have saved equal to your 3 months Salary, next immediate thing you will do is Insurance Planning. Buy Personal Accident Insurance, Term Life Insurance and Health Insurance (even if you have one provided by employer). These are must. Recommended to have a Critical Illness Insurance also, but you can do this little later also.
Step-4: Start Systematic Investment Plans (in Equity Oriented Balanced Funds and Diversified Equity Funds) for your Life (financial) Goals. Retirement, Long Term Emergency / Contingency Fund, Own Home Down Payment Fund are some of the default and common goals. Tax Planning / investments should get automatically achieved if you start SIP's in ELSS / Retirement Funds of Mutual Funds.
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