I am a 4th year doing engineering in CSE , I want some financial advice on how to get started

Personal finance
1

Hello ,
I am 21 years old , i recently got placed in a company through on-campus placements ( pay is 17 lakhs yearly) , I still have one year to graduate my B.E , so at this time i want to plan for my finances , i am in no intention of buying a house at a metro city that i work in . Kindly give me a road map and the apps that i can follow in terms of investing in mutual funds or anything that will propel me to a better financial freedom

2

Congratulations on your new job and your forward-thinking approach to financial planning! It’s great that you’re considering how to manage and grow your wealth early in your career. Here’s a roadmap to help you get started, along with some app recommendations:

Financial Roadmap

  1. Emergency Fund: Before investing, build an emergency fund worth 3-6 months of your living expenses. This fund acts as a safety net for unexpected expenses or emergencies.

  2. Budgeting: Start by creating a budget. Track your income and expenses to understand your spending habits and identify areas where you can save money. Have at least one account purely for saving.

  3. Clear Debts: If you have any debts maybe a student loan, especially high-interest ones, focus on paying them off first before going towards big investments.

  4. Health and Life Insurance: Ensure you have adequate health insurance coverage. Consider a term life insurance policy if you have financial dependents.

  5. Retirement Planning: Begin investing in a retirement fund. Even small contributions now can grow significantly due to the power of compounding.

  6. Investing:

    • Mutual Funds: A good starting point for beginners. You can choose between equity, debt, or hybrid funds based on your risk appetite.
    • Stock Market: If you have the knowledge and time, you can consider direct equity investments. Start small and learn as you go.
    • Other Options: Consider other options like Fixed Deposits (FDs), Public Provident Fund (PPF), National Pension System (NPS), or real estate as per your long-term goals.

  7. Diversification: Don’t put all your money in one type of investment. Diversifying helps in balancing risk.

  8. Continuous Learning: Stay informed about financial markets and investment strategies. Read books, follow blogs, or take courses to enhance your understanding.

Recommended Apps for Financial Management and Investment

  1. Budgeting and Expense Tracking Apps:

    • Mint: Offers budgeting, expense tracking, and credit score monitoring.
    • YNAB (You Need A Budget): Good for detailed budgeting and financial planning.
    • Cred: Good app to track your credit score and build one.
    • Kuvera: Track all your investments in one place.

  2. Investment Apps:

    • Coin: User-friendly app for mutual funds.
    • Kite: Known for low brokerage costs, good for both beginners and experienced investors.

  3. Educational Resources:

    • Khan Academy: Free courses on personal finance.
    • Investopedia: For understanding financial terms and concepts.
    • Varsity: Good start point for the markets.
    • TradingQnA: You are already here don’t need to explain more.

  4. Tax Planning:

    • Quicko: Useful for understanding tax implications of your investments and for filing tax returns.

Key Tips

  • Start Early: The earlier you start investing, the more time your money has to grow.
  • Risk Assessment: Understand your risk tolerance and invest accordingly.
  • Regular Review: Periodically review your investments and financial plan to ensure they align with your changing goals and market conditions.
  • Avoid Impulse Decisions: Stay calm during market volatility and avoid making impulsive decisions.

Remember, the best investment plan is one that aligns with your personal goals, timeline, and risk tolerance. It might also be beneficial to consult with a financial advisor to get personalized advice.

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3

Thanks a lot brother , this really helped me with where to start with as a beginner , I will look through the resources you have mentioned .I will study them and i will get back and post the queries here , :sweat_smile: because here in my home town there are not a lot of knowledgeable folks that i can look up to . So this is the only source of doubt clearing i have :upside_down_face:
Thank you .

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