Invest After Three Years of Job

Because after getting a job, it takes two-three years to understand your expenses and the savings that will be made after that. The time after that is appropriate to save and invest.

As soon as you get a job and you get a salary, you only spend to meet your needs and your savings are nominal. But after three years of employment, it is the right time to strengthen your financial position by saving and investing. Also, in the first three years of employment, it is important to take some special steps to improve your present and future financial position.

Create an Emergency Fund

Every person should keep an emergency fund equal to his six months’ salary, which can be easily withdrawn. You can keep it in a bank savings account or FD. This fund helps during unforeseen situations, such as a family crisis or loss of source of income. An emergency fund provides the ability to not interrupt long-term investments during difficult times.

Invest in Health Insurance

Health-related expenses are always there, so this investment is extremely important. If you are not prepared for these situations in advance, you may face financial difficulties in the future. Once you start a job and start receiving a salary, it is wise to invest in health insurance. Investing at a young age can help you get better coverage at a lower premium, which proves beneficial in the long run.

Protection of Term Life Insurance

Life insurance is like a security cover for the family. If it is taken at a young age, the premium of the term plan is also low. However, there are other investment options for life insurance, but their premiums are usually higher. Therefore, taking term insurance first is the best option for financial security.

Create Small Savings Sabada Fund

Before planning your finances, it is beneficial to start a small and regular long-term savings plan. For example, start a mutual fund SIP of Rs 2000 at the age of 25 and increase it by 5% every year. If you continue this for 35 years, you can create a fund of around Rs 2 crore. The longer the period of the SIP, the greater the benefits. As the salary increases, new SIPs can also be started from time to time for additional savings, which will help you achieve your financial goals.

Investments in which Risk is Moderate

This includes schemes that act as balanced or diversified investments. These schemes not only offer growth potential but also the ability to withstand market volatility to a certain level. Most moderate-risk schemes offer stable returns through a combination of equity and debt instruments. For example, hybrid debt-oriented funds and arbitrage funds.

Low Risk Investment

There are some investments which have almost zero risk. These investment plans are stable and reliable, value adding and have minimum loss, such as Bank Term Deposit Plan (FDR), Public Provident Fund (PPF), Post Office Monthly Income Plan and bonds etc.

Investments that have High Risk

If your aim is on long-term capital growth, high-risk investment plans are suitable for you. Although these plans have fluctuations, they also have the potential for good returns in the long run. High-risk investment plans include direct stock market investments, unit-linked insurance plans and mutual funds that invest only in the stock market.