Going ahead, uncertainty in the job world is going to be the new normal. In today's cut-throat corporate world, job cuts, retrenchment, pink slips are big words that may send your world crashing through at any time, especially at a time when you’re just not ready for it. And, that’s why it’s extremely important for you to factor that scenario as soon as your begin your journey into the world of work.
Once you have set your mind on investing early in your career, a lot becomes streamlined if you can also control your spending. After all, you need to save to invest. You need to curb impulsive buying just because there's a salary coming in. It doesn't take long to see the money vanish. That there may not be a second month to allow you to make up for the spendings, is why you need to prioritise your investments.
It is but natural that your first job is that magic wand with which you want to fulfil all your desires - a party for friends, gifts for your family and a lot more. But hold on! You have your life to do all of these and more. Rather, a sensible approach after getting that first job and your first pay cheque, would be to start saving.
Start investing the day you get your first salary in your account
In order to safeguard yourself against the ups and downs of the job world, it’s important that you lay down the right foundation for a successful investment journey. Instead of buying expensive gifts for your parents, enjoy the smile on the face of your parents and family by showing them the financially responsible side of you. Nothing makes a parent more proud than a child who is responsible and is aware of the need to keep herself/himself secure in the future. Plus, once you start putting aside money from your salary towards investment options, you will not get into the habit of blowing up that money on frivolous things.
Plan your investment journey
Make short, medium and long-term goals so that your investments become your strength. There are a number of factors you can consider while planning your investment journey. For instance, you can align your investment plan to the number of years (5-years outlook or a 10-years outlook); Align them to your goals, further education or shifting to another city/country or marriage; etc. You should also plan to split your investments into different buckets whereby a part of it is long-term and you keep some part of it where you have the option to liquidate it early in case of a job crisis.
Being disciplined not only ensure savings, it also reduces unnecessary spending
Discipline is key to a successful investment journey. Bring discipline, not only in your investments, but also in your spending. Instead of spending on a whim, you can always budget in vacations, purchase of swanky cars, partying and many such expenses, as part of your savings. If you’ve accounted for all these expenses from the fruits of your investments, it will be that much more enjoyable and also much better for your financial wealth.
Give yourself and your family a safety cover by investing in best health and insurance plans
If you think saving early is the only intelligent move to secure your family's future, think twice. There may be occasions where you are forced to dig into your savings to meet crisis situations. In such cases, once the savings are gone, it gets too late to replace them. Along with savings, it is prudent to get the right insurance and health plans for your family and you. This will ensure that you do not need to touch your savings if there are any medical emergencies, accidents etc.
Asset allocation is key to financial planning
Last but not the least, asset management is important. And, this has to be based on your financial goals. Things like how much money you can invest in say equity where you are not going to consider liquidating your investments at a particular point of time and leverage it to max. The investments you need to make for time-bound events like studies, marriage or education of your children, could be put in debt so that you are able to liquidate it at a time of your convenience.
So, when you begin your journey into the job world, or even when you reach mid-level, it’s important to keep these factors in mind while planning and structuring your portfolio for long-term peace of mind. What also works very well is relying on specialised guidance that can help you set yourself up for success and ensure that while you work towards a great career, your money continues to work on its own to keep you safe against uncertain times.