Maniging monthly salary - Software Engineers - India

Arcesium
~DarkLord~

Go to company page Arcesium

~DarkLord~
May 28, 2021 26 Comments

We all have some salary as IT employees.

How should we manage the cash flow? Where to invest? How much and how long to invest?
How all of you folks plan your future?

Our educational system doesn't teach us Financial Literacy. Let's all take a step and give individual inputs on this thread, by which I hope, we all can learn this together.

quote: "Money makes money" (your hard earned money to work for you to make more)

#salary #salaries #money #software #sde #faang

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TOP 26 Comments
  • HSBC
    cuteVol1

    Go to company page HSBC

    cuteVol1
    Keep some portion of your salary as savings. For ex- 20% of your salary is for savings(includes MF, Stocks etc).
    Diversify your portfolio into MF- ETF, Liquid Funds, SIP, Stocks, LIC and Crypto. But do your own research before investing anywhere.
    May 28, 2021 8
  • This comment was deleted by original commenter.

    • New / Eng
      freshhh

      New Eng

      freshhh
      Use meaningful variable names
      May 28, 2021
  • Apple
    TrjD37

    Go to company page Apple

    TrjD37
    Invest in a general world stock market ETF like VTI - or as close as you can get to one
    May 28, 2021 0
  • Media.net / Eng
    aes1024

    Go to company page Media.net Eng

    aes1024
    When you build your investment you first need to chart your expenses. Total expenses must be kept at 40% of salary as far as possible.
    Now first thing ofc buy health insurance and life insurance.
    Then for 6 months * per month fixed costs create a liquid savings corpus. But this in a FD/Debt fund. Liquid and non risky but at least inflation beating returns. If possible make this an 8-12month saving as then for at least 3-4 years when your expenses increase this still will suffice.
    Now rest 60% invest as per your appetite. Example.
    10% Indian mf
    10% indian etfs
    10% USA ETFs
    10% Gold if u want.
    10% direct stocks. Avoid if not super good at this. Or just basically bet around on friends advice etc.
    10% into Crypto or whatever next big thing you think.

    Now ideally one of these 10% and your bonus should go towards short term goals. Like taking a vacation. Buying a phone etc.

    Rest should be going towards long term saving. Maybe house retirement. You can split into goals.

    So overall. If 100 is ur salary.
    40 is ur expenses. 10 is your wants and 50 is your investment.
    As salary grows.
    40 still should be expense but 15 wants and 60 savings. Here new salary is 115. 15% increment. So you get the idea. Keep fixed low. Wants should grow very slowly. Savings shld grow fastest.
    May 29, 2021 0
  • Dell
    bored2ev

    Go to company page Dell

    bored2ev
    I have tried to diversify the funds.
    35% Market linked (ELSS, ETFs,MFs etc), 25% Banking Products. 30% is for monthly expenses and the rest 10% is kept for opportunistic investments.

    Still trying to figure out the perfect balance though.
    May 28, 2021 8