First time Earners: Need Investment and Savings tips please

Hi Seniors,
I need suggestions in savings for a Middle class family.
What should be the first step should a person do after he started recieving his first salary(i mean in savings?)...What would be your suggestion: buying a build house or just land? Which is the best investment? Should we have LIC policies?Which is right time to buy a house?
Please share your wealthy healthy experience so that i can follow your suggestions in future
Thanks in advance

Hi, Investments should be base on your need for liquidity, your risk appetite and your final goals(long term. short term)
For someone who has just started earning (young investors) it is better to look for investment options with low risk. One good thing is to get a PPF account, its very good from the point of view of long term savings without any risks. Also is not taxable.
Another option is to open FD' s with banks. Yes, one should get LIC policies, one because they save you some tax and two because they cover you and your family the risks. Some LIC policies also pay dividends over a period of time. About getting a house, one should try to get a house as soon as one has enough funds for the down payment and a home loan is approved, the money that goes towards the rent can be paid in installments to the bank.
It is always better to start saving as early as possible. This helps you grow your wealth over a long -period of time. all the best.

Hi Friend,

Its really nice to know you want to start saving from your first salary itself. Good
Go Ahead.

You can start saving by the way of Fixed Deposits (lumpsum), small means Recurring Deposit, Gold Investment (in cash or in funds), better to go for land in a good area or some place you can watch in. or can go for apt. type.

You start investing now itself, It really doesnt matter how much u earn, but it matter when how much u can save, and really worth how much u can invest from that.

With this note, I am signing off. Keep mailing

Regards
Revathi

Hi Friend,

Congrats on ur First Salary!!

Good to know you have already planned to save ur earnings and Free From routine spending responsibilities. Its really a welcome approach For the new middle class junta.

How you want to save depends on your total salary you earn.

- Take a loan and place 40-50% oF your earning towards installment For the plot u buy (U have bought a land in ur name now)

- Invest every month 15% in Mutual Funds.. ( As stock markets and real estate are growing market, u can reap good dividends.) (Form a group oF 5 members and pool in ur money and invest directly in IPOs, secondary stocks - High risk activity and proFit shared by 5. It will help in long term)

- Invest 20% - recurring deposits. ( You can mobilise cash in emergency situations)

- 10% towards medical insurance For parents (iF u have to take care oF their medical expenses).
- 10-15% - enjoying urselF.

Enjoy Saving !!

Hi Nalini

The first mantra in handling your money is to "Pay urself first", i.e before you pay your bills, save for yourself.It is wise to startwith with a term insurance policy. I don't recommend ULIP policies as investment. To start with invest 10%of your sal every month. Read carefully, it is "invest", not "save". Invest and diversify (in your 20s the asset allocation can be 60%in equities, 20%in PPF/LIC/FD, 20%cash)

Planning finances in your 20s? Here's how

Investment advice for youngsters

These are some articles which I found useful from rediff.

Hi Nalini,

I would also like to add one more point.

Based on your current job, you can also invest on yourself for better career enhancement.
1. Higher education in your discipline or mgmt through distance programme from Reputed institutes
2. Soft skills
3. Learning a foreign language like french/spanish or Japaneese
4. Developing keen interest in any community group activities
5. Learning music or dance like salsa, or new sport

No one plans for investment in the above categories. But as there are good market growth in India and abroad, these will help you down the line as you grow.

Originally Posted by deepshikha

Hi, Investments should be base on your need for liquidity, your risk appetite and your final goals(long term. short term)
For someone who has just started earning (young investors) it is better to look for investment options with low risk. One good thing is to get a PPF account, its very good from the point of view of long term savings without any risks. Also is not taxable.
Another option is to open FD' s with banks. Yes, one should get LIC policies, one because they save you some tax and two because they cover you and your family the risks. Some LIC policies also pay dividends over a period of time. About getting a house, one should try to get a house as soon as one has enough funds for the down payment and a home loan is approved, the money that goes towards the rent can be paid in installments to the bank.
It is always better to start saving as early as possible. This helps you grow your wealth over a long -period of time. all the best.

I will start working shortly. I have a Professional degree in Publishing from India(BE).This will be my first job. Can you tell me what kind of job I can look for. I am not looking to work in my field as I will be enrolling for my Masters next spring. Also ,I am in US from 5 yrs. I was looking to buy a house by next year end. scrimp and save for that. Can you tell me a few ideas to save for it.Thanks in advance.

wow thanks alot for the nice tips here.....