I am fresh out of college and placed with a good job. It's been two months now and I have with me (after making all deductions):
- Two months salary
- Signing bonus = Equivalent to another 1.5 months of salary
I'm finally done setting up my bank, demat accounts and want to know what is the best way for me to organize / invest my money which includes:
- Putting away the signing bonus worth money into a tax savings account over the next year)
- Creating / maintaining an emergency fund equivalent to the signing bonus.
The options I currently have in mind are:
- Put the signing bonus into the tax savings account (in lump sum); start a Systematic Investment Plan (SIP) for the remaining investments (and emergency fund) I have chosen.
- Use the signing bonus as an emergency fund; start a SIP for both a tax savings account as well as other investments.
Please assume that the volumes chosen here (for an emergency fund, etc) are optimal. I have no debts, and a support system in place which because of which I can take higher risks.
Other options are also welcome. Thanks.