5 Practical Financial Tips for Freshers.

5 Practical Financial Tips for Freshers.

Every year, about 1.5 million Indians graduate from SOT (school of technology). And the supply to demand ratio for these fresh graduates is so irrelevant that every new fresher has consciously and cautiously focused on his/her expenditure. Therefore, it is necessary for freshers devise an effective financial plan to excel in their career.


1. Get Paid what you’re Worth and Spend Less than you Earn

It sounds simplistic, but many people struggle with this first basic rule. Make sure you know what your job is worth in the marketplace by conducting an evaluation of your skills, productivity, job tasks, contribution to the company and the going rate, both inside and outside the company, for what you do. Being underpaid even a thousand rupees a year can have a significant cumulative effect over the course of your working life.

2. Stick to a Budget

It is very important to set a fixed budget so as to be aware of what to spend on and how much.  Budgeting means setting up short term important goals and then focusing on as well as managing them on the basis of budgets.

3. Pay OFF Credit Card Debt

Credit Card debt is the number one obstacle to getting ahead financially. Those little pieces of plastic are so easy to use and it’s so easy to forget that it’s real money we’re dealing with when we whip them out to pay for a purchase, large or small. Despite our good resolves to pay the balance off quickly, the reality is that we often don’t and end up paying far more for things than we would have if we had used cash.

4. Having a Savings Plan

You’ve heard it before: Pay yourself first! If you wait until you’ve met all your other financial obligations before seeing what’s left over for saving, chances are you’ll never have a healthy savings account or investments. Resolve to set aside a minimum of 5% to 10% of your salary for savings BEFORE you start paying your bills. Better yet, have money automatically deducted from your paycheck and deposited into a separate account.

5. Invest

Investing has become one of the most significant ways to have a stable increment in one’s budgets. Investment can be done in real estate, pharmaceutical companies, etc. Today’s generation follows the trend that investment must be done in start-ups.

Investors of start-ups and smaller firms tend to take on more active advisory and management roles than those of the more established or publicly traded companies. In part, that’s simply because getting in early gives you a higher proportion of voting shares, and by the same token, influence over the direction your company takes. Another reason, though, is due to a legitimate need of many companies and entrepreneurs for mentorship, industry connections, strategic management, etc., which go far beyond simply providing funding. Investing in a startup will give you a voice and a position to be an integral part of the most consequential decisions the company will make in the future.

So, keeping in mind all the above advises, any new fresher can always keep financial balance and hence, lead a comfortable life ahead. Although there might be some important pros and cons of each of these objectives, yet something worth investing time in is better than coming up with zero solutions for making changes in one’s life.

Credits :

Content: Kaif Ahmed

Graphics: Shubham Saurav

Editor: Prachi Prafull

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