After years of being dependent on your parents for a certain lifestyle, earning can provide you with
an exhilarating feeling of autonomy.
You know the efforts required to earn money and now, you can spend it on your own terms without being accountable to anyone else.
However, take care to handle your hard earned money in the right way.
Let me tell you the 7 most important things to when you get your salary:
In this article
7 Must-Do Things With Your Salary
1. Time to Clear Off Your Debts
You are earning now and it’s your responsibility to pay off your debts.
A student loan is the most common debt at the initial stages of earning. Many of us take a student loan due to various reasons and it is of paramount importance that you pay them off.
Also, please don’t forget to pay off debts like credit card bills and other bill payments.
They are required to be paid off on a monthly basis and you might end up in trouble if you don’t pay them off. You should calculate your monthly repayments for all debts and set aside money every month to ensure no defaults on payments.
2. An Emergency Fund Is a Must
Your future is uncertain, so the need to save is supreme.
Emergency saving will come to your rescue when life decides to throw curveballs at you. Matters can be as small as replacing a mobile phone and as big as urgent medical treatment. An emergency fund keeps you well equipped for all situations.
3. Purchase Health and Life Insurance
Having the right insurance in your youth is an important component of success. You absolutely need to think about your physical well-being, because it is the biggest asset you have as a young adult. A health insurance is like a safety kit that you carry with yourself and no, you don’t have to pay a large premium.
There are various plans and schemes that you can select, in order to start off your insurance plan. To cover risk to a certain extent, you should consider purchasing proper health and life insurance policies.
4. Start Investing Now
You probably are tired of reading/hearing this, but start investing as early as possible!
Investing has the power of compound interest, i.e. to earn interest not only on the initial investment but also on the interest of earlier years. Investing early increases the time span of the investment, which helps to ride the ups and downs of the financial market.
Now, this is important when you are investing in riskier assets.
Further, to reduce your risk you should always diversify your investments. Your investment portfolio should be a collection of financial instruments which makes your financial position stronger in the market.
Where should you invest?
5. Help Someone
It’s not that hard, trust me.
You are fortunate enough to be self-dependent, but a large section of the society isn’t. These people are dependent on the compassion of people who have the privilege to help. So, think of a cause close to your heart and donate an amount that you can afford.
Set off on a trip alone or with your friends. Explore the world. Experience new cultures! Take a break from your hectic routine and encounter an adventure of your own. So, book a holiday package for yourself and enjoy your life to the fullest! You deserve it.
7. Don’t Forget to Pamper Yourself
It’s your hard work that gives you a fruitful life. Looking back at your placement hassle, exams, studies, you probably just forgot to take care of yourself or do something you love.
By pampering, I don’t expect you to spend 3 hours in a salon/spa every weekend. Just pursue your hobby, go do something that you’ve always wanted to do – just treat yourself at a fancy restaurant! Don’t you think it’s your time to have some fun?
Proper planning, investment, and expenditure is required to ease the increasing roles and responsibilities that you have in life. By understanding how you should allocate your income, you can live life confidently and enjoy greater peace of mind. This gives you the ability to take on every challenge of life head-on!
Disclaimer: The views expressed here are of the author and do not reflect those of Groww.