3 Things You Should Do Immediately When You Get Your First Salary

Thursday, June 29, 2017

3 Things You Should Do Immediately When You Get Your First Salary

Many people will agree that their first job really changed the shape of their career. A good first job can be the ideal platform that will launch you to new heights in your professional career. However, just like your first job is critical to the progress of your career, your first salary account is critical to a lifetime of financial transactions. 
first job

Your first salary account is often your first step into the world of money management. It is an opportunity to become completely financially independent. Getting your first job is a huge milestone, but this is just the beginning of what you can achieve. Most employers will open a bank account with a particular bank where the employer will deposit your salary.

Many banks offer a free demat account and a free investment account along with salary account. It is an industry-wide practice to offer a free demat account for the first year. After the first year, the demat account holder has to pay the annual fee that varies from bank to bank. It is likely that the bank where your salary is deposited will offer a free demat account.

You do not need a demat account if you only plan to invest in mutual funds and fixed deposits. However, this is the right time to start investing in the stock market directly & a demat account is essential to invest in shares. By learning how to invest in shares, you can build up a sizeable portfolio by the time you retire, by setting aside just a small portion of your current salary every month. 

“If you have an outstanding education loan, it is time to pay back. Opt for a standing instruction on your savings bank account to pay your EMI. You can also use the account to invest in liquid funds to park your short-term savings. Thus, you can create your emergency fund,” says Jignesh Shah, founder of Mumbai-based Capital Advisors.

While many look upon this as mere HR formalities, it may be in your best interests to look at it as the first step in your journey towards financial freedom. A zero balance account can give you a head-start.

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