The first step would be to identify what your monthly expenses are going to be and investible surplus you will be left with.

Then you should plan on building a diversified portfolio of assets including debt, real estate, equity and gold.

The first step would be to build an ‘Emergency Fund’ – Roughly about 3 to 6 times your monthly expenses (not income). So if you spend 20k per month on living expenses, you should have atleast a lakh in a emergency fund. This can be either in an FD or a Debt / Arbitrage mutual fund.

If you have dependents, you should get pure life/ term insurance. DONT buy any ULIPs / Moneyback or Endowment policies.

If your company does not give you a PF contribution as part of your salary, then you can open a PPF account and put away about 5k per month in it.

I assume you don’t have any existing investments and have no prior experience with the equity markets or mutual funds. We suggest reading The Blueprint to learn more about the essentials of investing your money.

You should start small with SIPs or Systematic Investment Plans in Equity mutual funds and hold for the long term. This is where your money will grow significantly. E.g. If you put away 20k per month, it can grow to almost 18 lakhs by the time you are 25 and almost 56 lakhs when you turn 30.

And whatever you do, don’t leave your money lying in the bank. It will devalue your money and make the bank richer.

Even if you don’t know anything about investing, start with just Rs 1000 per month. You will thank us a couple of years later.