Anyone with tips for a soon to join A0, assuming there is no family money (or owned house) , small law school loans and parents to support? If anyone's been in a similar position would love tips on how you planned. Hearing things like there being no insurance benefits etc. is pretty scary because with most other "good jobs" that seems to be a significant perk when you've no family money. In context for some of us, law firm money doesn't seem like that much at all (please read it in context, I do understand the privilege of having this opportunity). Broadly, how should we plan to not have constant financial insecurity? ._.
Pay back loans, save everything else you can. Live minimum lifestyle, don't unnecessarily splurge on new phones, laptops, clothes etc, don't get swayed by the booze and over-priced cafe/pub culture of metro cities and put 1.5lakhs in your PPF account every year.
A0 money is very little in the long term. So don't focus too much on savings. Take health insurance, put 1.5 lakh in PPF for tax savings and enjoy with the rest based on your likes and dislikes. Saying this as someone who put effort into saving a lot from day 1 of A0 and realised at 30 that the initial amounts don't really make a difference.
I think I've done quite well managing my finance and life.
I have 5 simple rules.
1. Spend on your family. Kal ho na ho.
2. Spend on yourself. It will help you go a longer distance.
3. Spend on your GF/ BF/SO. Your social life will be shit. If your SO leaves, chances are your next relationship will be you settling for someone less than ideal in your office or an arranged marriage.
4. Work brings sufficient misery. Being miserly to only double the misery will make life hell.
5. Ignore unsolicited financial advice. There's too much of it being marketed around. Find your own balance between saving, spending & happiness.
Remember. You were not born & raised on a chicken farm for someone else to enjoy when your time's up.
Hi new A0! Congrats on your new job, it's not easy in today's market. There's no hard and fast rules, but here are some tips from someone who also graduated with loans and a family that needed help:
1. Resist the urge to splurge. You're earning well and you're within rights to want to indulge a bit, and you should do so, but cap it at 15% of your monthly income at most.
2. Focus on loan repayment. Interest is a bitch, so clear that out first. Don't fall into moh maya of invest invest invest that everyone's peddling these days. There will come a time for that, but not as an A0.
3. Save. Always have a rainy day fund. Even if it's just 5-7k a month, set aside some funds. If you're in a Tier 1, you can comfortably save a lot more than that.
5. Spend. Spend on things that make your life easier. Get a nice pair of shoes, get a decent budget phone, good wifi etc. If you don't spend on making life easier, you'll start hating how you earn money through blood and sweat and all of it goes to loans.
6. Budget. Use a budgeting app, set a strict limit on expenses and do not spend a penny more than your budget unless it's an emergency.
Please treat this job and salary as a temporary thing. In a year you may want to leave, and this salary is cushion for a rainy day as you take up litigation, policy or do further studies.
So save save save.
Don't fall for the law firm "lifestyle" (much easier in WFH). Don't splurge. If you like the law firm job and stick around after year 3, you can start spending your money then.
Love all the comments. As an upcoming A0, I am planning on taking Finance with Sharan Masterclass/Finology/other such courses on personal financing and investing.
Although not T1 here
I have 5 simple rules.
1. Spend on your family. Kal ho na ho.
2. Spend on yourself. It will help you go a longer distance.
3. Spend on your GF/ BF/SO. Your social life will be shit. If your SO leaves, chances are your next relationship will be you settling for someone less than ideal in your office or an arranged marriage.
4. Work brings sufficient misery. Being miserly to only double the misery will make life hell.
5. Ignore unsolicited financial advice. There's too much of it being marketed around. Find your own balance between saving, spending & happiness.
Remember.
You were not born & raised on a chicken farm for someone else to enjoy when your time's up.
1. Resist the urge to splurge. You're earning well and you're within rights to want to indulge a bit, and you should do so, but cap it at 15% of your monthly income at most.
2. Focus on loan repayment. Interest is a bitch, so clear that out first. Don't fall into moh maya of invest invest invest that everyone's peddling these days. There will come a time for that, but not as an A0.
3. Save. Always have a rainy day fund. Even if it's just 5-7k a month, set aside some funds. If you're in a Tier 1, you can comfortably save a lot more than that.
5. Spend. Spend on things that make your life easier. Get a nice pair of shoes, get a decent budget phone, good wifi etc. If you don't spend on making life easier, you'll start hating how you earn money through blood and sweat and all of it goes to loans.
6. Budget. Use a budgeting app, set a strict limit on expenses and do not spend a penny more than your budget unless it's an emergency.
So save save save.
Don't fall for the law firm "lifestyle" (much easier in WFH). Don't splurge. If you like the law firm job and stick around after year 3, you can start spending your money then.