RESUME APPLICATION PAY PREMIUM
Fund Performance

Fund Performance

Knowledge Center

Knowledge Center

About Us

About Us

Tools and Calculators

Tools & Calculators

Quick links

Mobile (Download app)
  • Webpages
  • Documents
  • HDFC Life ClassicAssure PlusInvestment
  • HDFC Life ClassicAssure PlusInvestment
  • HDFC Life ClassicAssure PlusInvestment

For NRI Customers

(To Buy a Policy)

(If you're our existing customer)

For Online Policy Purchase

(New and Ongoing Applications)

Branch Locator

For Existing Customers

(Issued Policy)

Fund Performance Check

RESUME APPLICATION PAY PREMIUM

What do you want to do?

Quick links

Mobile (Download app)

Download HDFC Life App

Buy plans, track your policy, make renewal payments & monitor fund performance with HDFC Life App, Download Now!

Apple Logo Go to Google Play Store

5 Financial Mistakes To Avoid When You Receive Your First Paycheck

down-arrow
5 Financial Mistakes To Avoid When You Receive Your First Paycheck
December 26, 2022

Your ultimate financial freedom officially begins when you receive your first paycheck. The thrill of finally having your own hard-earned money to spend on anything you've ever desired after years of being a penniless student is priceless. Your 20s, though, will either make or break you. Spending all of your money on unnecessary indulgences, taking excessive risks, and failing to plan for the future will ultimately prove to be a major financial blunder.

Here are 5 common mistakes that young people make with their first salary that you can now avoid:

  • Not Planning for The Long-Term

    Even though you may have just started working, you would be surprised how the years will pass - almost within the blink of an eye. You may also want to contemplate on achieving financial freedom early so that you can invest your time in doing what you love - travel or starting a venture of your own or just soak in life’s experiences.

    So, you should also begin to consider your long-term investments, with a pension ranking as the most significant of these. HDFC Life Sanchay Plus is a savings plan that offer guaranteed income in the future. Even though retirement may seem far away right now, if you start saving money right away, even a tiny amount, you'll benefit from the miraculous power of compounding.

  • Senseless Spending

    While the joy of receiving your first paycheck and wanting to spend it all on your favourite products is hard to resist, you've got to. One of the biggest mistakes you may make, not just as a fresher but throughout your financial career, is spending on luxury only to purchase them on a monthly EMI and hoping to pay it off within a year. Spending too much on luxuries you might not even use in the future is a bad idea. Keep in mind this rule: Don't buy anything unless you can pay for it twice in cash.

  • Taking Too Much Risk

    It's never a good idea to put all of your money into high-risk investments. No, we're not suggesting it's a poor idea to invest in high risk instruments like crypto assets; rather, we're saying it's a bad idea to put all of your money into one financial asset. Thus, never put all your eggs in one basket. If you're passionate about investing, then learn how to build a comprehensive portfolio and hedge your funds. You must learn how to survive in every market, not just when it's at its peak and giving you hefty returns.

  • Not Following A Budget

    Long-term financial imbalances are the only outcome of failing to keep track of your money's inflow and outflow. Being in your 20s, you might not be aware of the amount of money you spend on social gatherings or happy hour sessions. Develop the practice of tracking your fixed expenses, setting a budget, and sticking to it. If you've never maintained one, start with any budgeting app or anything as basic as a Google Sheets budget template.

  • Not Creating an Emergency Fund

    An emergency fund is a safety net that will enable you to maintain your standard of living, make on-time payments on your debts, and cover essential needs even in unexpected circumstances. Relying on your credit card in these situations might not be the best move because it will burn a big hole in your pocket and damage your credit. As a result, you should always set aside at least 10% to 15% of your income as an emergency fund to give you the security you need when things are uncertain.

Small consistent money habits will eventually help you build wealth in the long term.

Related Articles

ARN: ED/12/22/31003

Term Plan Articles Term Plan Articles

Investment Articles Investment Articles

Savings Articles Savings Articles

Life Insurance Articles Life Insurance Articles

Tax Articles Tax Articles

Retirement Articles Retirement Articles

ULIP Articles ULIP Articles

Health Plans Articles Health Plans Articles

Child Plans Articles Child Plans Articles

Popular Calculators Popular Calculators

Francis Rodrigues Francis Rodrigues

Francis Rodrigues has a decade long experience in the insurance sector, and as SVP, E-Commerce and Digital Marketing, HDFC Life, manages the online sales channel, as well as digital and performance marketing. He has had hands-on experience in setting up sales channels and functional teams from scratch over a career spanning 2 decades.

LinkedIn profile
Author Profile Written By:
Vishal Subharwal Vishal Subharwal

Vishal Subharwal heads the Strategy, Marketing, E-Commerce, Digital Business & Sustainability initiatives at HDFC Life. He is responsible for crafting and ensuring successful implementation of the overall organisation strategy.

LinkedIn profile
Reviewed By Reviewed By:

Here's all you should know about life insurance.

We help you to make informed insurance decisions for a lifetime.

Is Your Financial Report Card A+ or F? Here’s How to Grade Your Financial Health

Is Your Financial Report Card A+ or F? Here’s How to Grade Your Financial Health

Evaluate your financial health with a comprehensive financial report card. Explore key metrics beyond credit scores to improve your finances and achieve your goals.

Who Should Know Your Financial Secrets? Here’s Why It Matters!

How Rising Interest Rates Impact Your Investments—and What You Should Do About It

Preserving Your Investment: How New Tax Rules Affect Real Estate Sales Before 2024

Discover how new tax rules affect real estate sales before 2024, impacting capital gains, deductions, and property transactions. Stay informed for smarter decisions.

Preserving Your Investment: How New Tax Rules Affect Real Estate Sales Before 2024
Financial Planning Tips for Self-Employed Individuals Previous
5 Smart Purchases From Your First Salary Next
HDFC life
HDFC life

HDFC Life

Reviewed by Life Insurance Experts

HDFC LIFE IS A TRUSTED LIFE INSURANCE PARTNER

We at HDFC Life are committed to offer innovative products and services that enable individuals live a ‘Life of Pride’. For over two decades we have been providing life insurance plans - protection, pension, savings, investment, annuity and health.

Disclaimer

HDFC Life Sanchay Plus (UIN:101N134V15) is a non-participating, non-linked savings insurance plan. Life Insurance Coverage is available in this product. For more details on risk factors, associated terms and conditions and exclusions, please read sales brochure carefully before concluding a sale.

Popular Search

Popular Searches