Outlook Money
Financial planning from the beginning of one’s career is important, as it helps to ensure enhanced financial security, lower stress levels, and accomplishment of long-term financial goals.
1] Budget
Taking note of income and expenses to estimate the budget is important to analyze spending patterns and categorize them into different heads. This helps prevent overspending.
One should plan to fund at least six months of mandatory living expenses to cover emergencies. This would include food, house rent, insurance premiums, equated monthly instalments (EMIs) on loans etc.
One should keep a good credit score by paying bills on time and not demanding an excess of credit. A good credit score may help in getting easier loan approval in future.
By identifying non-essential expenditures, such as subscription services, impulse buys and lifestyle products, one should reduce discretionary spending for better financial stability.
The sooner one starts retirement saving the better it is for the long investment horizon.
Compiled by Syed Muskan