Being a software employee or a private employee is really a big task in countries like India. Especially for the people who earn around 25k to 35k per month. Every software employee working in an MNC can relate to this. You start your career as an employee in a private organization at the age of 22.
You might get a job in metro cities like Mumbai, Chennai, Pune, Banglore, Hyderabad where the house rent can be around 8k – 10k & then you might be saving around 10k after all your expenses. And here, some of them will be having family burdens and need to send money if they are the only earners in their family.
Here I am going to talk on behalf of an employee working in a private organization and have another earner in their family. I am going to propose you few money-saving and investments that you can do from your savings.
Life may be easy going until you marry. But, things are not the same after marriage. There will be some hectic burdens that you have to bear. So, be prepared, think wise, invest wisely.
PRE-PLANNING:
If you want to buy a car 2 years from now, the best is to keep money in RDs/FDs and use it in the short term. While for Kid’s education/marriage and all can benefit from the investments in Eq/MFs. Opt for district cooperative banks where the interest amount will be high for FD’s & RD’s. Open an account in the name of your grandparents because the interest will be high for people above the age of 60.
AVAIL THE HABIT OF SAVING:
If your salary is 25k, just train your mind that you will be getting only 19k salary for a month. As soon as you get salaries, take out this 6k and invest them in FD’s, RD’s, LIC policies.
EMI’s :
As an elder, my sincere suggestion is until unless you are a government employee never opt for EMI’s. A private job is not a permanent one. Even software employees face inflation issues. If you are around 22 – 25years of age group and unmarried, you have the support of your families.
Don’t try to give unnecessary gifts to your parents which does not have any value for example phones, instead buy them Gold ornaments even in grams also it is acceptable as it is treated as a permanent asset.
If you earn around 25k to 35k per month segregate your 20% of your salary like this, Say you are saving 6k per month.
RD of Rs. 2,000 will be done for meeting unexpected Exp Rs. 2,000 will be invested in incurring Insurance & Medical Expenses Rs. 2,000 will be kept in Savings Account every month for dealing with daily expenses. Put aside this 6000 at any cost don’t use them at any instance.
IDEA NO.1 :
Investing in mutual funds via SIP will bring in more discipline to your investment. Equity, Balanced and debt are the different categories of mutual funds, Equity mutual fund can be chosen for long term investment as it can give 12-15% returns. Be invested for a minimum of 3-4 years.
IDEA NO.2:
1 A gram of Gold today costs around 4k. So, twice a month or thrice a month you can invest in Gold. Gold is an asset that can give you profits when its price is high.
IDEA NO.3:
Out of your 6k,
- Save 1.5k in RD in a bank, low return but safe.
- Invest 3 k in SIP every month, The compounding principle yields high returns.
- Invest 1.5 directly in the stock market and accumulate different types of stocks, so that if one sector doesn’t work, at least some other will.
IDEA NO.4:
If you are aiming for a long term goal, just save 5000/- per month which amounts to 60000 per year. Invest this 60k in PPF in SBI like nationalized institutions. The maturity years will be 15 years. So, if you invest 60k every year for 15years then you will be investing 9 lakhs for 15years but your returns will be 15 lakhs after 15years because of the interest added by the banks. You can directly aim for a house in 15years.
We will be posting about all the investment plans explaining each of them in the near future. Keep looking at this space for more information.
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