First salary is a momentous occasion while climbing the corporate ladder, something one proudly brags about a few years later, mapping the subsequent rise. First saving, on the other hand, hardly gets a mention, unless in an ad selling insurance. And when a Vice President of a top tier bank recently stated that he barely makes it with his `1 million a year salary, we knew this was a statement that had hit home.
Research analyst, Priya Bhattacharjee, joined her first ‘well paying’ job a few months ago and thinks that she should be at least saving ten grand per month, unless the highly priced organic cereal comes along. “When I reach the middle of the month and I realise that I have enough bank balance, I feel that I can splurge. And when the guilt sets in, I tell myself that my parents are the contingency plan and after all I earn for myself,” she says.
Harsh Roongta, CA, Personal Finance Expert and India CEO of Apnapaisa, says that he ensures that his son, who recently became a part of the work force, saves at least `5,000 from this `20,000 salary. “It is important to make saving a habit, right from the first salary and discipline your expenses into your income instead of the other way around,” and advises to plan first and then spend accordingly.
As luxuries turn into necessities, the old laws of saving too are giving way to new ones. While EMIs and eating out remain the order of the day, financial consultant for HSBC, Anushel Mohan, says that it’s important to have at least four months worth of salary at any given time in one’s bank account. “If one starts from scratch, then basic requirements that make a home do get prioritised, but then one also needs to realise that finances can’t be messed up for the sake of instant gratification like partying regularly or shopping at every sale,” says he, adding that prioritising things is the key to successful management of finances.
Chartered accountant, SC Vasudeva says that nothing will change on its own and the person has to decide consciously to save every month. “These days people spend a lot of money to show off, which instead should be saved. Usually, one starts saving when they start contributing towards their family, so that should be encouraged by parents and family members,” he tells us.