Just stepped into your first job? Some Tips for you

WHEN you are only a few months old in your first job, it is not easy to think in terms of saving for the future. In any case, what do you need to save for? Getting married, setting up a home, educating children and retirement… you know these involve expenses, but none of these appear in your horizon now. So why bother to save for them?

Well, there are two good reasons why you should. First, at your age, saving is the easiest. Saving will cut into your spending all right, but it will be least painful than at later stages in life. When you know, at the back of your mind, that your saving is working for you, any regret will disappear sooner than you think.

Secondly, it is most beneficial. Your career has just begun and decades of earning lie ahead of you. You are in a much better position to make your money grow than someone approaching retirement. This ability to recover from investment losses means that you can rationally select investments, which attempt to earn superior pay offs in the long term. Also, it is the best time in your life to shape saving into a habit. Where should you begin? Set aside a fixed portion of your salary every month. Try and pepper your saving plan with some exciting ideas. For example, every month, see if you can exceed the previous month’s saving. Crunch numbers and create goals: for example, if you cut down 10% more on eating out, what all can you do with the saved sum 10 years from now?