How much you can save is dependent on how much you earn and if you live with your parents. I spent a bit on partying to celebrate the newfound freedom. Bought a few suits to wear to the office. Took the family out for a fancy dinner. Didn't save more than 20% of what I earned for the first couple of months. But then started spending a sparingly and investing in SIPs.
As you receive your first cheque, would like to give you some tips for long term wealth creation (and not just savings). By reading your question, I have assumed that you are not from rich family. If this assumption is wrong, you may ignore these tips.
1. Once you receive salary, save fixed amount each month first. Spend your money after you save. Your savings rate should be high and keep expenses in check. You need to be well dressed, but need not buy expensive brands. Its a farce so stay away from it. Invest EACH month rigorously.
2. If you need a car, use as utility and no need to spend more than 15 lakhs on car for commuting. Change the car only once your previous one is giving trouble.
3. Invest wisely. FDs, debt instruments will not give you return to beat the inflation. Learn stocks, mutual funds and invest wisely.
4. Dont fall in insurance trap. One term plan of INR 1 crore coverage should suffice - annual premium should be INR 10K to 12K.
5. Control your unnecessary expenses - reduce alcohol, smoking and spend that money on food, gym etc. No need to buy very expensive cloths. Brands like LP, Van Hausen should work for the most (including partners)
Lastly, please spend your first salary for family but dont exhaust entire 1st month salary on that. Please save from day 1.
By above tips, I accumulated a mass at 35 year age.
Bought 3 crisp white shirts, 3 trousers, 2 exotic ties, 1 belt, 1 laptop bag and an iPhone. The tier 1 law firms are very judgy in these terms, ask anyone around and they will all tell you the same.
That's what firms that are paying you that want you to feel :))
1. Once you receive salary, save fixed amount each month first. Spend your money after you save. Your savings rate should be high and keep expenses in check. You need to be well dressed, but need not buy expensive brands. Its a farce so stay away from it. Invest EACH month rigorously.
2. If you need a car, use as utility and no need to spend more than 15 lakhs on car for commuting. Change the car only once your previous one is giving trouble.
3. Invest wisely. FDs, debt instruments will not give you return to beat the inflation. Learn stocks, mutual funds and invest wisely.
4. Dont fall in insurance trap. One term plan of INR 1 crore coverage should suffice - annual premium should be INR 10K to 12K.
5. Control your unnecessary expenses - reduce alcohol, smoking and spend that money on food, gym etc. No need to buy very expensive cloths. Brands like LP, Van Hausen should work for the most (including partners)
Lastly, please spend your first salary for family but dont exhaust entire 1st month salary on that. Please save from day 1.
By above tips, I accumulated a mass at 35 year age.