Your first job will teach you many things. It will give you a certain amount of financial independence, it will help you understand how to deal with more responsibilities, and it will certainly teach you the value of money. In many ways, the first job you hold is often the most important one in your life. It is what allows your future to unfold in a particular direction.
With your first job, therefore, it is essential to always keep your future in mind, whether you are considering taking on certain responsibilities or are getting serious about financial planning. Here are some reasons why you should start investing immediately after you start your first job:
Why you should start investing early?
1. This is just the beginning of your work life
Your first job marks the beginning of your work life. This means that it’s only going to get more demanding from here on out. With longer work hours and more responsibilities as you climb up the organizational hierarchy, you’re more likely to have to deal with larger amounts of stress too. Therefore, it is essential to invest in health insurance.
2. Low premium rates
If you are worried about not having enough funds to invest at this point in your career, don’t be. One of essential investments that you can make for your family’s sake is life insurance and these come with extremely low premium rates that are quite affordable. You can choose to pay your premiums on a monthly basis, or in one go (although rates vary per policy, they are often as low as 2,000 – 4,000 a year and can be paid in one go if needed). Furthermore, life insurance policies offer high covers as well, making them great avenues to invest in to protect your family’s future.
3. It’s the beginning of many more milestones
Your first job is a milestone in itself and you should celebrate it, but it is certainly not the last one in your life. As you grow older, you may want to purchase a car, get married, buy a house, travel, and so on, and it is important to recognize that you’re going to need a fair amount of funds to do so. By investing in high ROI policies such as ULIPs, you can plan for your future in a more concrete manner now itself. This way, when the time for any of these purchases rolls along, you will be able to make all your dreams come true without worrying about the financial side of things too much.
4. Time equals money
One of the things to understand about financial instruments is that the more time you give them, the more your funds will grow. So, for instance, if you invest in a ULIP for 5 years, versus investing in one for 10 years, you’re more likely to grow your funds larger in the latter scenario than the former. By choosing to plan your finances now itself, you will end up growing and saving enough funds for whatever you may need. You can build the kind of lifestyle you have always wanted with ease.
5. Organizational growth doesn’t always match your needs
Another factor to consider is the competition in most industries today. With millions lining up for the same posts, organizations can get away with paying their employees smaller slabs than they would have to do for more niche posts. So, even if you follow your 5 year plan to the letter and reach certain managerial positions that you’ve been coveting, the designation may not always match your salary expectations, making you scrimp and save more to live the lifestyle you want. However, by saving and growing your funds, you do not only have to depend on your career for the lifestyle you aspire towards.