dreams these days come with a high price tag in fact seemingly simple needs have been elevated to dreams due to the high cost associated with them you require either a large income or a strategic plan to meet these basic life goals make a financial plan the day you start working and you wont have to scramble to fund each aspiration however it may not be as easy as it seems i dont know how much to save and where to invest so i dont budget and end up spending a lot says harshinder kaur who started working two years ago as a probationary officer at a bank this is a predicament many youngsters in their mid20s face the twin behavioural devils of ignorance and procrastination push most people into their 30s before they get down to streamlining their finances this often results in faulty investment choices flawed portfolios unmet goals and financial insecurity later this category is not a cash cow for advisory firms and as they have no one to turn to they often get lost says jayant pai cfp and head marketing ppfas mutual fund we try to remedy this through our story this week we offer the newly employed youth a step by step guide to plan their finances however this is merely intended to propel them into planning and they will need to research and learn continuously throughout their working livesmake a budget start saving budgeting is the simple exercise of reconciling your income with your expenses and should be your first step note down your monthly spending as per your ease of usage excel sheet simple diary mobile app or desktop the aim is to know how much you spend under various heads after you have budgeted for 34 months you will realise that your expenses can be sorted into three categories essential discretionary and entertainment tracking of budget is important not only to identify mandatory and discretionary spends but also ensure that you dont overspend says vinit iyer cfp founder wealth creators financial advisors once youve identified the outgoing amount put away 1020 of your salary every month before you start spending if you dont know where to put it start with your bank account try to opt for a sweepin account that has a fixed deposit linked to it as it will fetch you a rate higher than 4 which you get from your savings account this will help inculcate a lifelong saving habit as financial planner pankaaj maalde says its important that your money does not lie idle this is because with very few liabilities and responsibilities this is the ideal period to save and take advantage of the power of compounding another first is to start educating yourself about personal finance the more informed you are the better your decisionmakingframe your financial goals you have started saving but will you have enough to buy a house 10 years down the line or a car five years hence