27F, grew up in an income tax-free country and struggling to understand personal finance in India. Clueless about planning for growth. Any must-know tips?
Hey everyone!
I’m 27F and I moved to India for my university education after completing my schooling in the Middle East. I was brought up in a country that did not have the concept of public tax, so I never really understood how it worked until I started working full-time in India.
I started my first job in 2022 at 9 LPA. I didn't understand how to spend or save and barely had any money when my contract unexpectedly ended and I lost my job. 3 months of unemployment later, I took a pay cut and restarted at 6.5 LPA. In the past two years, my salary has gone up to 21 LPA.
Here's my current standing:
- I’m lucky to have no major debts
- Savings are quite sad - I have around 4L in an RD (which I think I should reserve as an emergency fund), plus some money in my NPS and PF accounts
- I save around 1L per month (currently all to the RD), and my expenses are around 40k (metro city rent, groceries, commute, etc.)
I know there are so many better ways to save. I should be investing in mutual funds, but I have no idea where to start. I’m also moving to a new country in a year or so, I’d appreciate advice on any of these:
- Should I speak to a financial advisor, tax advisor, or CA? If yes, where can I find a reliable one and how much can I expect it to cost?
- How do you actually get started with SIPs? I have a Demat account, but no idea how to use it.
- I’m honestly lost when it comes to tax planning. Do people usually have to manipulate/restructure their salaries to save on tax, or am I overthinking it?
- Can I continue to grow my assets here in India if I choose to move and settle elsewhere?
I appreciate that much of this may seem very naive for someone who’s been here 9 years... but better late than never, right?