From Student to Earner

Graduating and starting your first job is a big financial transition. Planning ahead makes it smoother.

Before you start

• Understand your offer: know the difference between CTC and in-hand salary.
• Plan loan repayments: find out when your education loan EMIs start and how much they’ll be.
• Set up accounts: a salary account, and consider separate accounts for savings and spending.

From the first salary

• Build an emergency fund of three to six months of expenses.
• Start or increase SIPs, such as 10 to 20 percent of take-home pay.
• Get health insurance if your employer’s cover is limited.
• Keep living like a student for a while, to avoid lifestyle creep.
• Repay high-interest debt first, such as credit card balances.

Education loan strategy

• Pay EMIs on time to build your credit score.
• Consider prepaying if you have extra money, especially for high-interest loans.
• Use the tax deduction on interest if you choose the old tax regime.

Supporting family

Many young Indians support parents or siblings. Plan this openly in your budget.

Module recap

• Start money habits early with pocket money and a first bank account.
• Education loans, PM Vidyalaxmi and scholarships help fund studies.
• Budget carefully for hostel life and watch hidden costs.
• Stipends and earnings can be taxable; file returns to claim refunds.
• Use cards carefully to build credit.
• Study abroad costs include living costs and currency risk.
• Avoid scams and start investing small amounts early.