Maniging monthly salary - Software Engineers - India
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
comments
Diversify your portfolio into MF- ETF, Liquid Funds, SIP, Stocks, LIC and Crypto. But do your own research before investing anywhere.
MF is for long term. So that won't be a problem. Stocks depends upon company to company. That's why I said research thoroughly before investment. You may buy stock at high.
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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.
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.