The Buyt Desk
Women are marching forward in every front but one. Global statistics say women are paid less compared to their male counterparts. Salary is that glass ceiling that not only exists but is difficult to break as well. That is why it is really important that you bargain smartly at the very start of your career.
Here are a few mistakes most women make at the start of their career and must avoid.
Not Bargaining On Take Home Salary
Freshers remain clueless about the variable part mentioned in the salary in their first job. In the absence of knowledge, they make mistakes. Variable pay is the performance-based incentive. Employees get this amount only when they achieve the given target.
A fresher lacks experience due to which they miss targets. The variables might look attractive in your salary slip, but it’s the amount you will be getting only after achieving targets.
Make sure the variable in your offer letter remains the minimum, and try to bargain on take-home pay.
Don’t Get Lured By Sign-on Bonus
Many companies give a sign-on bonus to freshers. It is the tactic of companies to attract talent at a low cost. Remember, the sign-on bonus is a one-time amount. It will not happen anytime after that, so your overall payment will be less.
Check How Much You Are Contributing In EPF – EPF employee provident fund is an excellent investment option. It helps you in saving from the time you start earning. However, to ensure you are contributing enough to it, you need to check the basic part of your salary. Both employee and employer contribute to EPF every month. It is a certain percentage of the basic salary. That means if your basic pay is high, you will contribute more to your EPF account every month. It will help you grow your money.
Plan Your Monthly Budget
You can save decently if you plan your monthly budget and cut on those expenses that are avoidable. Monthly budget planning helps in spending mindfully and lets you make contingency funds. You can also call it an emergency fund. This fund you might need when you change your job or lose your job. Usually, 3-6 months’ expenses is enough for a contingency fund.
Don’t Be Dependent On Your Employer For Health Cover Employers provide medical cover, but that is not enough to meet all your requirements, especially when you have dependents. Terminal critical illness treatment takes out all reserved funds.
Having a separate term life cover will give you extra protection. It is beneficial in tax saving. Calculate your income and expenses. Based on that, buy term life cover.
Start Saving Aggressively
The best time to start investing money is right after you start earning. Start saving right after you receive your first pay-out. Even if it is as small as Rs 1000, start that. Make a goal and start saving for that. You can have more than one goal and invest a different amount for each goal.
Take the help of financial planners to find out all the investment options available for you. For millennial investors, there are multiple avenues present.
Go Easy With Credit Cards
With a job comes the freedom to spend. And it is the time when you need to hold your desires. Getting a branded handbag, an iPhone could be on your list but get them only after building a contingency fund and investing.
The credit card might get into overspending. You should keep a distance from that.
