Saving Money as a Fresher
Welcome to my blog on financial planning. I know you would like to grow financially. And you started your career now.
Ok lets plan your finances.
What all you have from the below
1. Study loan
2. Family commitments
5. Future plans
When you have a study loan, that is a good thing. You already saves a lot on the low interest which you have paid.
But recently as you started your job, the loan interest rate went higher. Now lets see how you can get benefit from this loan.
Study loan interest can be deducted from income tax.
If you are earning enough that your income invites some tax, then don’t forget to use the interest on your study loan which will reduce the tax burden or some time your tax would be zero when you consider the study loan interest.
Everyone has some or the other family commitment. I am sure you are not married yet. You have to take care of your parents. If they are working, its good for you, but if they are not working, you have to give some money for their requirements.
Meeting family commitments is the first thing that you should do as you are making your world happy by doing this. There is no investment than making your family happy today.
Ok now you got some savings. How do you plan to earn some money from your savings as a fresher with lots of things need done in near future.
You have some savings. Now what?
Plan what all things you need in near future. A training to go up in the ladder, a bike to commute and save time (time is money), or an apartment to invest.
Training yourself is the best investment that lots of research has proven it. It yields unlimited percentage of your investment. So go for a training and start learning something.
I provide game development training in Bangalore by which you start earning money while you are learning the game development and getting ready for a bright future in the industry. You may try.
How a bike will help you save a lot of money?
Buy a bike with your own money. Never go for a loan. A standard bike will cost you around 60 to 70k. And the interest you are loosing on it is around 7% i.e. 4900 rupees yearly. This amount or a little less you are already spending on a monthly basis. So it helps you save atleast 10 months money in a year. So you will save the money you are spending on daily commute.
Now you have Needs
Every person need a house to live and own a house to do what he or she need. To setup something which will enable you to work and earn you need your own house or you might be spending a lot of money as rent.
Plan your house early in your career. A small should do. Work hard and try to clear the loan asap. Then definitely you can plan for your second after marriage.
I bought a two storied individual house. In one I resided and other I rented. I had around 20 lakhs in my savings. I deposited 12 lakhs and by using rest of 8 lakh as down payment, I took a home loan for 33 lakhs. I cleared my home loan in 8 years and planned for the next big.
The rental income from one floor and the rent I was paying helped me meet my EMIs.
Everyone must do some planning for their future. I planned to do lot of things in my life. working hard for them. Everything need money now a days. So saving saving saving.
I do game development, graphic designing and paintings during my free time to make some extra income. I am an author in Envato market place since my first year of my career. As an author I published few games and made a decent income. My creations helped me getting better jobs. I believe growing by doing. So lets work and grow.