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Your first salary
The first credit SMS is the easiest time to set the habit for life.
You have no big commitments yet, nothing to undo, and decades ahead of you. A simple order works: a cash cushion, your own health cover, a first SIP, and a rule for every raise. We set it up with you in one call, starting from ₹500 a month.
- ₹500 smallest SIP we set up
- 4 steps in the first 90 days
- 50% of every raise, saved first
The order
Four things, in this order, before anything fancy.
Most first-job money mistakes are about sequence. A SIP stopped in month four because of a phone repair bill does more damage than a late start.
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01
Month 1 to 3
A starter cushion of one month's spends
Before investing a rupee, keep one month of rent, food and travel in a separate savings account. Then grow it to three months over the first year. If you spend ₹25,000 a month, the first target is ₹25,000 and the full target is ₹75,000.
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02
Month 1
Your own health cover, not only the office one
Employer group cover ends the day you leave the job. A personal family floater of ₹5 to ₹10 lakh bought at 23 costs far less than at 35, and waiting periods start counting from day one. For a healthy 24-year-old, a ₹5 lakh plan often costs roughly ₹6,000 to ₹9,000 a year.
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03
Month 2
The first SIP, sized so you never pause it
Pick an amount you will not miss: 10% of in-hand pay is a fair start. A flexi cap or index fund category is usually enough at this stage. One fund, run on autopay, dated two days after salary credit.
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04
When needed
Term cover only if someone depends on you
Parents who rely on your income, or a sibling's fees you pay? Then a pure term plan, bought young, locks a low premium for 30-plus years. No one depends on you yet? Skip it for now and revisit at marriage.
Premium figures are indicative ranges and depend on age, health, city tier and the insurer. Insurance is the subject matter of solicitation.
Sample split
Where the money goes in month one
Two in-hand salaries, the same logic. Fixed costs first, saving taken out on salary day, then spend what is left without guilt.
Figures are a starting suggestion for a single earner living away from home. Your rent and family support change the picture; we adjust it with you.
| Bucket | ₹35,000 in hand | ₹60,000 in hand |
|---|---|---|
| Rent, food, travel, bills | ₹19,000 | ₹28,000 |
| Money sent home | ₹4,000 | ₹8,000 |
| Emergency fund top-up (till full) | ₹3,500 | ₹6,000 |
| Health cover, monthly share of yearly premium | ₹600 | ₹800 |
| First SIP | ₹3,500 | ₹7,000 |
| Fun, eating out, shopping | ₹4,400 | ₹10,200 |
| Saved on salary day | ₹7,600 (22%) | ₹13,800 (23%) |
Why start at 23
Same ₹3,000 a month. Seven years apart.
Both people invest ₹3,000 every month until age 58. The only difference is the year they start. The early starter puts in ₹2.5 lakh more and ends up with more than double.
Try your own numbers- Starts at 23, 35 years
- ₹1.95 crore₹12.6 lakh invested
- Starts at 30, 28 years
- ₹82.8 lakh₹10.1 lakh invested
12% a year is an assumed rate for illustration, monthly SIP, before tax. Equity returns move year to year and can be negative for long stretches. Mutual fund investments are subject to market risks, read all scheme related documents carefully. Past performance may or may not be sustained in future.
Lifestyle creep
Every raise quietly turns into a bigger lifestyle. Decide before it lands.
Lifestyle creep is when your spends rise as fast as your pay, so your savings rate stays stuck at year one. It rarely feels like a decision. A nicer flat, a phone upgrade on monthly instalments, three food deliveries a week.
The fix is one written rule, set on day one: half of every raise goes to savings before you see it. If your pay goes up by ₹8,000 a month, raise your SIP by ₹4,000 and enjoy the other ₹4,000.
Done every year, that turns a ₹3,000 SIP into a 10% yearly step-up without any effort. Over 35 years, ₹3,000 stepped up 10% a year grows to roughly ₹5.3 crore on ₹97.6 lakh invested, at a 12% assumed rate for illustration.
Mutual fund investments are subject to market risks, read all scheme related documents carefully.
90-day checklist
What to do and when
Tick these off over three salary cycles. Nothing here takes more than an evening.
First salary
- Open a separate savings account for the cushion
- Complete your KYC with PAN and Aadhaar
- Note your fixed monthly spends on one page
- Buy personal health cover
Second salary
- Start the first SIP on autopay
- Set nominees on bank, SIP and EPF
- Check your EPF number is linked
- Pick your tax regime with HR
Third salary
- Write your raise rule down
- Cancel two subscriptions you do not use
- Set a yearly review date with us
- Note one goal: a bike, a course, a deposit
Under the new tax regime, which is the default, ELSS and most 80C deductions do not apply. Under the old regime, 80C allows up to ₹1.5 lakh and 80D up to ₹25,000 for your own health premium. Rules as of 2026, check current rules.
Plan my first salary
Tell us your in-hand pay. We send back a month-one plan.
Cushion target, a health cover range, a first SIP amount and your raise rule, on WhatsApp, at no charge.
I earn ₹20,000. Is it worth starting at all?
Yes. Start a ₹500 SIP and a small cushion. The amount matters less than the habit; you will raise it with your first increment.
My office gives health cover. Do I still need my own?
Keep both. The office cover stops if you switch jobs or take a break, and a personal plan bought young keeps its waiting periods served and its premium lower.
Should I invest in stocks directly?
Not with money you need. A diversified equity fund through SIP spreads the risk across many companies. If you want to learn direct stocks, keep it to a small slice you can afford to lose.
Which SIP date should I choose?
Two or three days after salary credit, so the money leaves before you spend it.
Do you charge a fee for this?
No. As a mutual fund distributor we are paid by the fund house through regular plans. We explain how that works before you invest.
Read next
Related services and guides
Each step above has its own page, with more detail.
Emergency fund
How big, and where to keep it
Health insurance
Your own cover, outside the office plan
SIP
Monthly investing, with step-up
Index funds
A low-cost first fund
Term insurance
When someone depends on your income
Blog: what is a SIP
A short read to send a friend