Five Monetary Mistakes You Must Avoid After Getting First Salary

When you get your first salary, you enjoy a great level of power but with this power, comes a great amount of responsibility. Here is a list of mistakes that you must avoid in the long run.

Written by: India.com Business Desk Edited by: Abhijeet Sen

Updated: June 6, 2023, 8:51 PM IST

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Here is a list of mistakes that you must avoid after your first salary. Image: Pixabay

New Delhi: The first salary that you receive after you start working somewhere is a testimony of your personal as well as professional success. When you receive your first salary, most of the time you have fewer people around you who can tell you how should you manage your finances and what proportion of the salary you should invest and save.

If you are one of them, you are in the right place. When you get your first salary, you enjoy a great level of power but with this power, comes a great amount of responsibility.

Mistakes You Must Avoid:

Here is a list of mistakes that you must avoid after you get your first salary to ensure that you are financially secure and stable throughout your life.

Reckless Spending:

When you get your first salary, you must avoid making expenses that are not required for the time being. You should defer the expenses that you think you can make later. Moreover, you are also suggested to not go for buying real estate or vehicles at the very start but rather use them on lease.

Zero Savings:

Everyone knows that savings are very important, but only a few of them go for savings from their first salary. “For a fresher, the first aim should be to build an emergency corpus, equivalent to at least three to six months’ worth of living expense,” Sanjeev Govila, a SEBI-registered investment advisor and CEO of Hum Fauji Initiatives, was quoted as saying by Money Control.

He also added that in the early stages of career, one can start with (putting away) around 10 per cent of monthly salary and gradually increase the amount as income grows.

Taking Too Much Credit At One Go:

When you get your first salary, your credit limit increases suddenly and you can take a big loan anytime, but you should avoid taking a loan that you think you would face difficulty servicing.

No Financial Planning:

According to Sanjeev Govila, failing to set clear financial goals is also one of the common mistakes. Hence, you must plan your salary in such a way that you allocate proper investments for your future expenses and liabilities.