With malls and e-commerce websites everywhere, today’s young girls are exposed to quite a high spending choices ever. If you are one such girl who recently started earnings and is free to deal with your money, this post is for you!
Yes, now is the time to sort your money so as to lead a stress-free life ahead. You may not even want to think of it, but it makes sense when we are talking about securing financial future.
Calm down! It is not as complicated as it sounds. You do not have to totally cut down on your fun expenses. But, you have to budget it for sure. Give a thought on your most important financial goals in life and work in that direction. Here we listed 5 most important goals, every young girl should have.
1. Emergency Savings
We agree that you have a backup in the form of your family and well-wishers to look after you, any day. But don’t you think it is good to be independent? Be responsible for your life and be prepared for uncertainties. What if a health emergency happens to your parents or you lose your job all of a sudden?
An emergency is something that can neither be foreseen nor be avoided. It makes sense to be prepared to face it. Open an emergency savings account and keep adding some money towards it, regularly. Experts advice setting up an emergency fund worth 6 months of regular income. The corpus in your emergency should be in liquid form but should only be dedicated for usage during emergencies.
2. Debt-free Life
Try not to get into debts. Nowadays, banks offer credit cards right during the salary account opening. Thus, exposing young earners to credit cards early on in life. Improper management may lead to debts.
Whatever be the kind of job or salary, be aware of your income and spending. Set up a budget. List out your monthly expenses. Make wise decisions on where your money should go in. It simply means, cutting down on unnecessary spending. Explore ways to have fun without really emptying your pocket.
3. Plan for Higher Education
To meet with your career goals and reach heights, you need to be constantly updated. You may have to enroll for new learning to increase skill set. Save from now to meet those needs without financial constraints. Especially, if you aspire for higher education overseas, which is a costly affair, start saving from now.
4. Marriage Goals
If you are one such girl who always dreamt of stunning marriage, start saving towards it. With right investments, you could accumulate enough for your trousseau. Plan for a honeymoon in Pattaya! Why compromise with Manali.
5. Retirement Planning
Retirement?? Yes, you read it right! Retirement may seem like million years away, as you just began to earn. Doesn’t matter! It is now that you should begin your retirement savings. Setting a goal with a long time frame is the most effective way to yield good returns.
With the power of compounding, you will see that your interest earns you interest. Learn how a timely SIP helps retirement planning in the below table.
If you start investing with just INR 2,000 every month from when you are 21 years, you can accumulate around 2 Crore rupees by the time you turn 60. This is a simple example of the compounding power, giving you 10% returns. Start early with as low as INR 500, must be the cost of coffee outing with friends. Stay invested in becoming a millionaire.
So, saving a little every month would get you more as the time passes on, provided you make right investment choices. Approach unbiased financial advisories like ArthaYantra to pick the right platforms for your investments.
In a nutshell, if you do not consider financial management early on, you would be left wondering what really happened to your money, 10 years down the lane! Start managing money when you are still young. Make a habit of setting crucial money goals and work towards achieving them.
Continue enjoying your life, but ensure you do not ruin your financial future.
