5 Tips To Optimize Your First Salary

5 Tips To Optimize Your First Salary


September 10, 2021

When we first earn our hard-earned salary, our emotions often get the best of us, and we end up spending so much that we’re left with almost nothing, too soon. What’s worse, it might end up as a bad habit and will hurt us in the long run. Relying on well-known baristas every day for coffee, ordering food online might satisfy your urges, but only for a few hours. We know what it’s like to be swayed by our wants so easily, which is why we are sharing these 5 financial tips: 

1. Start Saving Up For Your Retirement- Although you might think that your retirement has ages to come, consider saving up for it NOW. If your company adds a percentage to your retirement savings, then you are lucky, but if they don’t create your own which automatically deducts the amount as soon as your salary comes in. Treat it like you are paying a bill, but the most fun part is- that you are only paying YOURSELF! 

2. Hire a Professional- Creating our own financial goals might be easy, but getting there is difficult, as we need to map very complex financial routes that might be beyond our own bandwidth. That’s where professionals like CAGRfunds come in.  They assess the health of your finances and assign plans or investments that help you get to your goals. Start small with an annual financial check and then build up a relationship! 

3. Accelerate Debt Repayments- Try to pay off your debts as soon as possible. They may be your student loans, credit cards, or any type of personal loan you might have taken. It’s simple- start off with the loans which accrue a high interest, in most cases, they are credit card loans or student loans. Like the retirement option, try automated payments towards these loans so it feels like a monthly bill, so you don’t have to depend on the last moment to scramble over your finances.

4. Invest in a PPF or an ELSS- Under section 80C of the Income Tax Act of 1961, Equity Linked Savings Scheme or ELSS is a tax saving investment wherein by investing in it, you can claim a rebate of up to 1,50,000 and save almost 50,000 a year in taxes! It is the only kind of mutual fund that is eligible for tax benefits under section 80c.   A PPF or a Public Provident Fund is a government-supported retirement saving scheme to help generate small-scale savings towards retirement. It is also a tax-saving investment that helps you build your retirement fund while saving you some money from getting taxed. 

5. Create an Emergency Fund- The pandemic has taught everyone about the dangers of uncertainty and the chaos that it may bring. Any unforeseen circumstance might befall you causing you to incur heavy expenditure. Again, automating your payments towards your emergency funds, and treating it like a bill, helps you to make creating funds easier. 

We hope these 5 easy tips help you forge a path towards your financial goals! Happy saving and investing!

CAGRfunds Team

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