Investing from the 1st Salary

Sonali’s Slice of Life

Coming from a Tier-2 city, landing a job through campus placement in the city of my dreams felt like a dream come true.

City life was exciting, but it also had its challenges. The daily commute was exhausting, and I was just starting to understand the demands of my new job.

For the first time, I was paying rent, managing groceries, and balancing work and home life. There were nights when I felt overwhelmed by all the responsibilities.

Thankfully, my flatmates became like family, making it easier to cope with the loneliness. The freedom was thrilling, but it came with a lot of new responsibilities.

Getting my first paycheck was a huge milestone. Seeing my hard work pay off was amazing, but I quickly realized I needed to be smart with my money.

Financial institutions, FinInfluencers, colleagues, friends, - Everyone gave advice and I was getting confused with so many investment options.

I got introduced to TrueX through my company. TrueX financial advisor helped me navigate the confusing world of investments and make a plan which was suitable for me.

I started to invest from my first salary. Even small amounts grew over time, thanks to the power of compounding.

I was disciplined with my investments and saw it growing gradually like a money tree.. I have been investing for last 2 years and here is how it has been working out -

My saving plan ( 5 years) - I save 20% of my annual salary. My first increment was 15% in year 2. All the investment planning was done considering 15% salary increment every year with 20% of salary as savings.

Time period	Annual Salary ( in lacs)	Increment %	Saving per month	Saving per year ( in lacs)
Year 1	6 L		10,000	1.2L
Year 2	6.9 L	15	11,500	1.4L
Year 3	7.9 L	15	13,225	1.6L
Year 4	9.1 L	15	15,209	1.8L
Year 5	10.5 L	15	17,490	2L

Based upon my preferences and comfort, TrueX advisor suggested below investment strategy with me.

Sonali's Investment Strategy

Investment Type	% of total savings	Expected Return	Reason
Fixed Deposit	10	7% - 7.5%	Assured Returns with high liquidity for any urgent needs
ELSS	50	10% - 12%	Tax saving investment along with good returns
Mutual Funds	40	14% - 18%	Basket of mutual funds to balance risk and returns

Based upon this investment strategy, here is how my investments have been planned for 5 years -

Time Period	Salary ( in lacs)	Annual Saving (in lacs)	Investment Value (Current year)	Investment Value (by year 5)
Year 1	6 L	1.2 L	1.27L	2 L
Year 2	6.9L	1.4L	1.45L	2.05L
Year 3	7.9L	1.6L	1.67L	2.1L
Year 4	9.1L	1.8L	1.93L	2.16 L
Year 5	10.5L	2L	2.21 L	2.21 L
	Total	8.01L		10.52L

I am in Year 2 now and by the 5th year, my Salary = my Investments!! I love the power of compounding..

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Would you like to start your investment journey? Check out TrueXWealth or take the financial wellness Assessment & schedule a meeting with us 

P.S. All the financial and personal details are used for representative and information purposes.

Anamika's journey of meeting her financial goals and achieving Financial Wellness

Editors Note 

We at TrueX Wealth believe financial wellness is crucial for all individuals on their path to financial success. Financial wellness is ‘feeling in control of your finances - both present and future’.

The goal of this newsletter is to make readers aware of the financial queries and struggles that people face with their finances and how prudent financial planning can bring in comfort and peace of mind.

We hope this newsletter helps you with your finances. Please do reach out to us for any help.

Best,  

TrueX Team

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Today, we are taking you through a story of Anamika’s Financial Journey. Anamika is 26 years old and wants to own a house and take care of her parents.

Anamika’s Current Financial Position and Aspiration-

TrueX Assessment:

• Anamika’s saving ratio is excellent ~40%

• Parents are dependent and ageing towards 60. Health and Financial coverage is a must.

• She needs to start with tax saving investments to get dual benefit of wealth creation and tax savings. New vs Old comparison is required.

• Anamika needs a balanced portfolio of Mutual Fund Investments to fulfil her goal in 5 years.

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TrueX Recommendations

• Anamika should move to old regime and start NPS and ELSS.

• Right insurance policy for both health and term needs to selected and purchased.

• Mutual Funds investments to be started to meet the goal outlined.

• Quarterly check-in to monitor progress and align.

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Would you like to start your financial wellness journey? Check out TrueXWealth or take the financial wellness Assessment & schedule a meeting with us 

P.S. All the financial and personal details are used for representative and information purposes.