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📖Guide for New Earners

Your first salary: a simple plan

Congrats on the job! Here's a calm, no-pressure guide to handling your first paycheck wisely.

The 5-Step Starter Plan

1
🏦

Open a salary account

If your company provides one, use it. Otherwise, choose a zero-balance account with good digital banking.

💡 Tip: Look for accounts with sweep-in FD for better interest on idle money.

2
💳

Set up auto-transfer for savings

The day your salary arrives, automatically move 20% to a separate account. What you don't see, you won't spend.

💡 Tip: Even 10% is fine to start. Increase by 1% every 3 months.

3
🛡️

Build your emergency fund first

Before investing anywhere, save 3 months of expenses in a liquid, accessible form. This is your safety net.

💡 Tip: Keep this in a savings account or liquid mutual fund, not FDs with lock-in.

4
👔

Understand your EPF

If you're salaried, you're probably contributing to EPF. It's tax-free and your employer matches it. Let it grow.

💡 Tip: Check your EPF balance on epfindia.gov.in with your UAN.

5
📈

Start a small SIP

Once you have an emergency fund, start investing ₹500-1000/month in a simple index fund. Consistency beats timing.

💡 Tip: Nifty 50 index funds are a good starting point. Don't overthink this.

⚠️Common First-Salary Mistakes

  • ✕Don't buy a car or expensive gadgets in month one
  • ✕Don't co-sign loans for friends or relatives
  • ✕Don't invest in things you don't understand
  • ✕Don't skip health insurance if your company provides it
  • ✕Don't ignore your PF and tax documents
  • ✕Don't feel pressured to "treat everyone" every payday

✅Your Starter Checklist

Print this or screenshot it. Check off each item over your first 3-6 months.

Salary account opened
Auto-transfer set up (even ₹5,000/month)
Emergency fund goal set (3 months expenses)
EPF/UAN details noted
Basic health insurance confirmed
First SIP started (after emergency fund)

Helpful Tools for You

🛡️

Emergency Fund Planner

Calculate how much safety net you need

🎯

Investment Explorer

Find the right investment for your goals

Frequently Asked Questions

How much should I save from my first salary?▼
Aim to save at least 20% of your salary. Start with whatever you can, even 10% is a good beginning. The key is to build the habit early.
Should I invest my first salary?▼
Build an emergency fund first (3-6 months of expenses), then start investing. Even ₹500/month in a simple index fund SIP is a great start.
What is the 50-30-20 rule?▼
The 50-30-20 rule suggests: 50% for needs (rent, bills), 30% for wants (entertainment, shopping), and 20% for savings and investments.
Should I contribute to EPF or opt out?▼
EPF is excellent for long-term savings with tax benefits and employer matching. It is strongly recommended to continue contributing.
How much emergency fund do I need as a new earner?▼
Start with a goal of 3 months of expenses. Build up to 6 months over time. Keep this in a savings account or liquid fund for easy access.

Remember: there's no perfect way to do this. Start simple, stay consistent, and adjust as you learn.

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