Got your first salary? Here’s what you can do with it

Receiving the first-ever salary is a euphoric moment for every young individual. It is the moment one truly feels like an actual adult, someone who can take control of their life, mixed with the feeling of liberation and financial independence. Irrespective of how much your salary is, enjoy this special milestone.

We all dream of doing many things with our first salary. Treating oneself to something special, taking parents out for dinner for their constant and unconditional support, going on a weekend getaway, and the list goes on. It’s a time when the world seems full of possibilities, and our ambitions run wild. Since you just entered the world of real adulthood, let us help you with the options of things you could do with your first pay check.

Indulge, a little

No one is going to tell you not to treat yourself, especially with your first salary. You successfully completed the first month of a new chapter of your life and you should proudly acknowledge your hard work and dedication. It could be buying something you have been eyeing for a long time, taking yourself to a gourmet experience, or a small trip. Go ahead and splurge a bit.

Just remember to strike a balance between indulgence and responsible financial planning, as this salary represents the beginning of a journey towards financial stability and success. So, savour the joy of your accomplishments, and relish in the small luxuries that come your way.

Pay Off Debt

While indulging is essential to celebrate your achievement, it’s also crucial to be financially responsible. Becoming an adult with a regular salary makes overspending very tempting, however, you’re on a slippery slide from creating more debt.

If you have any outstanding debts, consider using a portion of your first salary to pay them off. Reducing your debt burden not only brings peace of mind but also sets you on the path to better financial health.

Whether it’s student loans, credit card debt, or any other financial obligations, allocating a portion of your salary to debt repayment can help you save money on interest payments in the long run and improve your credit score. It’s a responsible step towards securing your financial future.

Build an Emergency Fund

Adulthood is not a bed of roses. It pricks sometimes, and one must be sufficiently prepared for what life may throw at you. And what helps the most during unexpected emergencies? Money.

Consider setting aside a portion of your salary to start building an emergency fund. Ideally, aim to save at least three to six months’ worth of living expenses. This fund will help you cover unexpected medical bills, car repairs, or any other unforeseen expenses. Moreover, if you have funds set aside for such situations, you can also avoid accumulating debt in terms of loans or credit cards.

Start Investing for your Future

Since you just started working, it’s easy to be lax about investing. However, the earlier you start investing, the higher the chance to accumulate more corpus through the power of compounding.

Your first salary represents the beginning of your financial journey, and it’s a great time to start investing in your future. You can start off by researching on different options for investing, including stocks, mutual funds, wealth plans, and more. When you have a broader understanding of these avenues, you can determine your risk appetite and profile, and invest accordingly.

If you’re finding it difficult to figure out the right method of investment, you can always seek the advice of a professional. They will guide you in every step and build a portfolio for you, which will aim to give you the best return in the long run.

Protect yourself with health insurance

When you’re young, it’s hard to believe the term “health is wealth.” But if the pandemic taught us anything, it is that anything can happen in a very short period of time. Preparedness is the key to any unforeseen circumstances, especially when it comes to your health, and getting health insurance is the first step.

Health insurance offers much coverage, including pre- and post-hospitalisation, OPD visits, ambulances, domiciliary hospitalisation, critical illnesses, and more. With such extensive coverage, you will not have to pay out of your pocket for any medical emergencies.

Moreover, the younger you get health insurance, the lower premium you will have to pay. You also add additional coverage as you get older as riders so that you will get wider protection.

Invest in Life Insurance

While life insurance might not appear essential for young individuals like yourself, who are in good health, and possibly single, it’s crucial to consider its long-term advantages. Delaying the purchase of life insurance until your 30s or beyond could result in higher premiums. That’s why it’s advisable to secure life insurance when you’re young and in excellent health.

Investing in life insurance while you’re youthful and healthy safeguards your family’s financial future, assuring that they will be well-cared for in the event of an untimely demise. Therefore, don’t postpone purchasing life insurance until it’s too late, as making an early investment will save you money and provide your loved ones with the security they need.

You can choose to invest in SUD Life Protect Shield Plus, a life insurance plan that you can get at a nominal cost.

In conclusion, receiving your first salary is an exciting and memorable moment in your life. While indulging in some well-deserved treats is essential, it’s also crucial to make wise financial decisions to secure your future. Whether you choose to pay off debt, build an emergency fund, invest, or set financial goals, this first paycheck is the beginning of a path towards financial stability and success. Embrace this new chapter in your life with enthusiasm, and make the most of the opportunities it brings. Congratulations on your first salary!

Disclaimer

Star Union Dai-ichi Life Insurance Company Limited is the name of the Insurance Company and “SUD Life Protect Shield Plus” is the name of the plan. Neither the name of the Insurance Company nor the name of the plan in anyway indicates the quality of the plan, its future prospects or returns.

SUD Life Protect Shield Plus | UIN: 142N088V02 | A Non-Linked Non-Participating Pure Risk Premium Individual Life Insurance Plan Star Union Dai-ichi Life Insurance Company Limited | IRDAI Regn. No: 142 | CIN: U66010MH2007PLC174472

Registered Office: 11th Floor, Vishwaroop I.T. Park, Plot No. 34, 35 & 38, Sector 30A of IIP, Vashi, Navi Mumbai – 400 703 | Contact No: +91 22 7196 6200 | 1800 266 8833 (Toll Free) | Timing: 9:00 am – 7:00 pm (Mon – Sat)| Email ID: customercare@sudlife.in | Visit: www.sudlife.in | For more details on risk factors, terms and conditions, please refer to the sales brochure carefully, before concluding the sale. |Trade-logo displayed belongs to M/s Bank of India, M/s Union Bank of India and M/s Dai-ichi Life International Holdings LLC and are being used by Star Union Dai-ichi Life Insurance Co. Ltd. under license.

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