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Eight money tips to help young earners plan their finances

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If you are intent on turning your money into assets, then you need to start planning. Here are eight tips to help young earners such as yourself:

1. In financial planning, it is vital to take stock of your finances, and when you’re a young earner, this can seem like a Herculean task. To help identify your goals and make a budget, you can chalk out your expenses and learn to be a smart spender. Maintain records of your costs and manage it appropriately.

2. As a general rule, don’t touch credit cards until you’ve saved enough. Defaulting on a credit card is costly, and sometimes repayment can take years. Late fees and interest charges will be the bulk of your repayment. Stick to debit cards if a card is your preferred mode of payment.

3. When you maintain records, you may notice that your income is over-taxed. Plan your tax savings carefully. Find ways you can reduce your taxable income and invest in avenues that allow tax exemptions. EPF, PPF, NPS, 5-year tax-saving fixed deposits, ELSS, Ulips and life insurance schemes are some of the financial instruments to save on tax.

4. Invest 5% of your income in recurring deposits. A meaningful recurring deposit should be at least three years long. As a young earner, excess cash can go down the drain in wastage. Accounting for this pre-hand and investing in recurring deposits is your best bet. The great thing about this is that it is not complicated. It is as simple as it can get to bring considerable savings.

5. When you’ve been in your company for at least three years, you would have decided if you’ll be staying for an extended period or not. If you are, you can start investing in their shares. See if your company shares trade publically. It is the safest share because you would be more aware of your company’s financials better than someone outside the company.

6. Don’t be a miser. Don’t buy products just because they’re cheap. Invest in those that may be expensive but would avoid accumulating recurring costs either by having to replace specific parts or the whole product. A high-end product, if chosen carefully, can mean fewer maintenance costs.

7. Invest 5% in skill development activities. This investment may be the most crucial one you’ll make. When you invest in skill-building, it puts you in a position to advance in your career, thereby subsequently climbing up the financial ladder. Don’t choose those that don’t fit your interests and aptitude. Integrate skill development with leisure.

8. Account for emergencies. Identify areas of risk in your life and find an appropriate insurance plan and keep yourself insured. There are many premiums to choose even in a single insurance plan, so do your research and speak with insurance consultants before making purchases of a policy.

World’s Worst Economies

Worst Economies

1) Democratic Republic of Congo

2017 GDP for every Capita: USD 439

2019 GDP for every Capita (anticipated): USD 475

Despite the fact that the DRC has bounteous natural resources, Strong interest for key fare products, including copper and cobalt, is relied upon to drive development one year from now. Additionally, a sharp decrease in swelling should float household request. Political dangers, be that as it may, obscure the viewpoint.

2) Mozambique

2017 GDP for every Capita: USD 429

2019 GDP for every Capita (anticipated): USD 502

The second poorest nation on the planet is Mozambique with an estimated GDP for every capita of USD 502 for 2019. The previous Portuguese state has high any expectations of changing its economy dependent on prospects of inexhaustible natural gas fields found in 2011.


3) Uganda

2017 GDP for every Capita: USD 726

2019 GDP for every Capita (anticipated): USD 759

This speaks to a huge jump from the degree of the initial two on the rundown, Uganda is somewhat of a peculiar case. Following the 1986 furnished clash, the decision political gathering National Resistance Movement (NRM), sanctioned a progression of auxiliary changes and speculations that prompted a time of noteworthy monetary development and poverty decrease as far as possible up to 2010.

4) Tajikistan

2017 GDP for every Capita: USD 777

2019 GDP for every Capita (anticipated): USD 861

Tajikistan picked up autonomy after the fall of the Soviet Union, be that as it may, a civil war broke out not long after, which kept going five years until 1997. From that point forward, political dependability and outside guide have enabled the nation’s economy to develop, lessening poverty rather amazingly.

5) Yemen

2016 GDP for each Capita: USD 762

2019 GDP for each Capita (anticipated): USD 913

Yemen is amidst monstrous civil war that has caused a disastrous helpful emergency, which goes far to clarifying the nation’s place on this rundown of the poorest countries.

6) Haiti

2017 GDP for every Capita: USD 776

2019 GDP for every Capita (anticipated): USD 923

Haiti is powerless against outrageous climate and natural catastrophes with 90% of the nation’s population in danger as indicated by the World Bank. These natural calamities player the nation in a larger number of ways than one, including the economy. The 2010 seismic tremor for instance damaged equal to 32% of the nation’s GDP.

7) Ethiopia

2016 GDP for every Capita: USD 884

2019 GDP for every Capita (anticipated): USD 1122

Alongside Ethiopia’s fast monetary development came noteworthy decreases in poverty with over 55% of Ethiopians living in extraordinary poverty in 2000 dropping to 33.5% in 2011, as per the World Bank.

8) Tanzania

2017 GDP for every Capita: USD 1037

2019 GDP for each Capita (anticipated): USD 1159

The Tanzanian economy should keep on extending unequivocally, upheld by continued framework spending and development inside the administrations segment on the back of developing vacationer inflows. FocusEconomics anticipates that GDP should extend 6.5% in 2019, which is unaltered from a month ago’s conjecture, and 6.4% in 2020.

9) Kyrgyzstan

2017 GDP for every Capita: USD 1203

2019 GDP for every Capita (anticipated): USD 1266

The Kyrgyz economy is likewise defenseless against outer stuns because of its overreliance on its enormous gold mine, Kumtor, which records for about 10% of GDP, just as settlements, which add up to about 30% of GDP.

10) Uzbekistan

2017 GDP for every Capita: USD 1514

2019 GDP for every Capita (anticipated): USD 1350

For Uzbekisthan, in the period somewhere in the range of 2013 and 2016, items costs came slamming down alongside the powerless execution of Russia and China, key trade accomplices, antagonistically influenced the economy.