As a new graduate, the first thing you should do is to lock down as much money as possible in savings. When I graduated and got my first job, I immediately bought my dream car - a new Mustang GT convertible. Not the best of my financial decision ;-). Although I fixed the rest of my financial budget, this one was too tempting for me to resist. This is the thing you have to guard against: avoid the temptation to splurge.

Everybody fantasies about having a monetarily safe life. I for one don't know about any individual who really needs or anticipates being poor, isn't that right? It's simply unfortunate cash propensities, an absence of fundamental cash abilities and having no defined objectives that makes and keeps individuals in a poor monetary state. You'll enjoy a tremendous benefit of building a significant retirement fund assuming you become monetarily shrewd. You should simply learn and rehearse a couple of establishing long term financial stability methods. Make a point to give these to your kids. It will mean the universe of contrast to your kids' future on the off chance that you show them the accompanying standards as soon as could really be expected:

The appropriate way to invest money will vary depending on each individual's unique financial situation, goals, and risk tolerance. However, some general tips for young investors include:

1. Start saving as early as possible. The earlier you start saving, the more time your money will have to grow.

2. Invest in a variety of assets. Diversifying your portfolio across different asset classes (e.g. stocks, bonds, real estate, etc.) can help reduce your overall risk exposure.

3. Keep expenses low. It's important to be mindful of the fees associated with your investment products.

What you should instead do, live like a student a little longer. The first 2 years after graduation is when you should try to secure your financial future. Unless you manage your savings, it is hard to manage your investments.

If you are a single person just out of graduation, your goal should be to save half of your 12 lakhs in the bank. You should have enough bank savings to last 6 months of your monthly expenditure. Keep this in a fixed deposit. Once you are tight enough to manage this, proceed to the next step.

Start with balanced mutual funds that are fairly less risky. Get your toes in the water through these. Here is a list of balanced funds in India: Best Balanced Mutual Funds in India. Also use: Value Research Online

By now, you should have figured out what mutual funds are, what SIP is and other basics in investing. In the next step, start playing with equity funds. In the early stages of your career you goal should be hold more than 50% of your investment in equity funds. As you grow older, move a part of the investments to bonds/bank savings.

In summary, the first rule of investing is to save. Unless you have sizable money to invest, your above-market returns would not matter. Once you have built your safety net, go after mutual funds and then to equity funds/stocks.

Considering the monetary climate we're in, you may be imagining that it very well may be more secure to conceal your cash under the sleeping cushion like grandmother used to do!