How to plan personal finance at the start of you career?

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How to plan personal finance at the start of you career?
Financial planning is very important for every individual. It helps you to reduce overspending and build a corpus that may help you in emergency.

Its best to start planning your finance from day one of starting your career as you have less liability and more disposable income. So instead of going overboard with spending start planning your finance to fulfill big dreams.

Note your expenses: You should keep a list of all your expenses starting from the grocery. By this you will have a clear idea how much you spend on necessary items as well as luxury items. This will also help you to track if you overspend.

Plan you goal: You should plan your short term as well as short term goal. Your short term goal may include doing any educational courses or enhance your skills further or buying a car. Long term goal may include buying a house.

Save your income: You know your expenses as well as goals, so now you start saving. If you see that you are overspending then you can cut down your expenses and start saving more. You should start saving at least 20 per cent of your income.

So, if you earn Rs.70,000 every month then you should save 20% of Rs.70,000 i.e. Rs.14,000 each month. You can save money by opening PPF account, recurring deposits or fixed deposit in bank depending on your choice.

Click here to read how to take loan against your fixed deposit?

Buy insurance: You can invest in insurance plans like life insurance, health insurance or car insurance. Insurance will back up as a tax saving tool and also help you in emergencies.

To know more about life insurance click here.

Know your taxes: You should know the tax implications on your salary, deposits, investments, insurance or any other options. This will help you in knowing how much you have to save every year. This way you make sure you don't lose money by paying up excess money as tax.


It is rightly said that if you fail to plan then you plan to fail. So you should plan your finance from the beginning if your career to save you from many unavoidable incidents in future.

Story first published: Saturday, June 28, 2014, 9:41 [IST]
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