Earn, Spend, Save: Plan Your Finances

2. Budget

Once you know what your goals are then the next step is to make a proper budget. If you are earning Rs.12,000-15,000 monthly then utmost you can save only 10 percent of it. In a longer run the percentage will grow with your increment. “Instead of using the equation of income – expense = savings, you should use the equation income - savings = expenses.  Which means, decide how much you want to save in advance, and then plan your expenses accordingly”, says Ranjit Dani, Financial Planner, as quoted by firstpost.com.

3. Insurance

In the early stages of your life you may not require a life insurance or health insurance. These policies are meant to protect your family and assets financially if you die or become disabled. If, however, you are just starting with a job and your parents have either retired or are about to do so, pick up an online term plan. The online plan will be cheaper than the offline one and will offer adequate protection at an affordable price. However, remember that as you grow older, get married, have kids and take loans, you will need to increase this cover.