Money Tips for young earners who just started their career

When a young person starts his/her career there is lot of energy and enthusiasm. That is the first them when he starts getting  his own money and some times gets carried away with that money. This is the time when we need to have some basic understanding on how to manage money because mistakes made is early days can cost dearly for a long time. So let us understand a few basics about managing money in initial working life.

1. Avoid front ending many big ticket purchases like Cars, high end gadgets, furnished apartments etc.

2. Manage liquidity efficiently. Be conscious about spendings, keep an eye on bank statements.

3. Setup auto pay for utilities like rent, phone, electricity etc.

4. Get a credit card only if you must and can pay the dues on time.

5. Develop the skills to make choices. Take time to make better money decisions like where to live, what to eat and what to buy etc.

6. Open an investment account. complete KYC and other paper work.

7. Check tax saving requirements. Don’t buy insurance to save taxes.

8. Do the splitting when you are doing something together.

9. Pay your debts on time, there is a heavy cost for delay and ruins your credit score.

10. Focus on career and growth, have flexibility to move in other cities, don’t burden your self by high home loan EMIs, paying rent is better option in initial years.

11. You can neither spend without guilt nor save without sacrifice, strike the balance. Percentage allocation is good technique where you allocate a limit to all the expenses you desire.