Every year, a number of students graduate to the next stage of their
life and become professionals. Even during the recent economic crisis,
which resulted in a number of job losses, new recruitment was done.

Getting a job during economic crisis is a good thing; but it should
not make professionals feel that their job is secure. Such crises can
happen at any time, now more than ever. Young professionals should
start earning from the word “go’. Here is how.

Financial Battles Are Won (Or Lost) In The Mind

Previously, many people spent their first few months’ salary on
purchasing new dresses and gadgets, visiting tourist spots etc. Such
indulgence makes people postpone the act of saving. Once you switch on
to the spending mode, it is hard to switch off. The best thing is to
start saving an amount from the very beginning.

Here your mind will be your biggest enemy. If you manage to conquer it
in the first month itself, you have won half the battle. Though it may
sound ironic friends are the second line of the enemy in the financial
battle. They encourage you to spend like hell. One may entertain them
by throwing a party. But try to keep the expenses within manageable
limits.

There is a third group of enemies, comprising credit cards and online
purchasing options. Use credit cards and online accounts sensibly.
These can be a boon for a financially intelligent person and a bane
for a financially reckless one.

Take Advantage Of Automatic Options

Many companies provide savings and pension options for employees. Some
employers provide 401(k) plan or a pension fund. It is better to
contribute to such schemes, as money will be automatically deducted
from the salary. It is very easy and you do not have to think too much
about making a decision. In other words, jump into the bandwagon.

Where To Invest

You have saved enough money from your salary, what next? There are
many investing options: life insurance, stock market, real estate,
funds, government bonds, term deposits, and so on. Some financial
instruments, such as stock market, provide high returns, but are
fraught with risk. Some other options, such as government bonds, offer
low returns, but do not involve much risk.

It depends on the attitude of the investor. There is no financial plan
that fits all. Those who want to play it safe tend to park much of
their earnings in government bonds and term deposits. The more
adventurous ones tend to try their luck in stock markets.

A mixture of both – optimizing risk and reward – is the best bet. Put
your savings in different financial baskets. Putting your entire
savings in stock market can make you bankrupt, in the event markets
crash drastically. On the other hand, if you put all your money in
low-risk low-reward financial schemes, you may lose out on harvesting
the maximum rewards from your earnings.

Essential Expenses

Every person will have to buy a house or a vehicle at some point of
his or her life. It is better to get a housing loan or vehicle loan
early in the career.

The best thing is that one can think about these things even when one
is tweeting happily.

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