5 Financial Planning Tips for Salaried Employees

5 Financial Planning Tips for Salaried Employees

Master your money with 5 simple financial tips tailored for salaried professionals seeking long-term financial stability.

Written by : Knowledge Centre Team

2025-07-03

2903 Views

8 minutes read

Exit Pop Up

Live Life More Confidently

Get best insurance from our experts

Name is required Name should be Valid
Mobile Number is required Mobile Number should be Valid
DOB is required DOB should be Valid
Annual Income is required
Please tick to proceed further.

Thank you for your interest in our product. Our financial expert will connect with you shortly to help you choose the best plan.

Whether it is buying a home, supporting your child’s education, or planning for retirement, financial preparedness is key. Besides, we should always remain ready for uncertainties that might take place at any point in life. If you are a salaried professional, you must be familiar with the month-end financial crunch that haunts you, no matter how lucrative the paycheck is. Most of us are left with the daunting thought:” Where did all my money go?”

This is where financial planning becomes essential. That’s right, commonly known as a home’s monthly budget, it is a part of a broader term, financial planning.

Key Takeaways

  • Budgeting using the 50-30-20 rule helps balance needs, wants, and savings every month.

  • Term Insurance and health insurance offer essential protection for you and your family’s future.

  • Clearing debts early improves cash flow and strengthens your financial stability.

  • Goal-based investments align your savings with long-term financial objectives.

  • Starting retirement planning early ensures financial freedom in later stages of life.

5 Effective Financial Planning Tips for Salaried Employees

Financial planning is a structured way to manage your finances as soon as you start earning. Especially for salaried employees, it emerges as a powerful tool to make the most of their hard-earned money.

  1. Monthly Budget: This is the first step to financial planning, where a person must start by saving some money from their salary each month. Maintaining a written diary to record the monthly budget can imbibe the habit of spending wisely. Generally, expenses are categorised into three categories:
    • Needs
    • Wants
    • Savings

    Needs consist of basic and unavoidable necessities, such as house rent, electricity, water, and groceries. Wants include those commodities that don't significantly affect your life if you don’t spend on them, such as outings, food, and travel. Finally, savings represent a specific proportion of your monthly salary that you set aside for future emergencies.

    Most financial experts recommend applying the 50-20-30 rule, which means:

    • 50% of your monthly income should be allocated towards your needs. 
    • 20% must go to savings and investments
    • The remaining 30% can be spent on wants
       
  2. Insurance for your Family: Investing your saved money into a life insurance plan is a wise step. Insurance is a type of protection for you and your family that can be availed of when in need. Although the banks offer several kinds of insurance, the following are the major types that most people seek:
    • Term Insurance
    • Health Insurance

    For example, Canara HSBC Life Insurance has term plans that provide life cover for your family for up to 99 years. It guarantees the payment to the beneficiaries in case the insured person dies during this term. In this way, the needs of the family can be better met during a financial shock. Health insurance, on the other hand, protects against rising medical expenses and helps preserve your savings in case of illness or hospitalisation.

    All in all, an insurance plan can be a valuable safeguard for you and your family.

  1. Clearing Debts: Debt can be a serious roadblock in your financial planning if not cleared on time. Clearing your debts on time helps you make the most of your income and keeps your financial goals on track, without getting weighed down by monthly EMIs. 

    To avoid getting burdened by debts, go back to step 1 and analyse if you overspend on your wants. Here are some quick tips on living a debt-free life:
    • Repay your credit card bills as soon as you can.
    • Close all your loans on time.
    • If your home loan’s EMI is higher than the rent itself, then you have a decision to make. You can also use an EMI calculator for such estimations.
    • Don’t get attracted by offers like 0% EMI, Easy EMI, etc.

    The foremost is, avoid adding any further debts to your financial portfolio.

  2. Goal-based Investments: Once you have started saving regularly, you can invest it to get a better return. Goals are the real fuel of investments; thus, you must fix a goal for which you can sacrifice some time. You can contact your bank or any investment firm which provides you with the following options.

    • Fixed deposits
    • Bonds
    • Debt funds
    • Gold
    • Real Estate
  3. Retirement Planning: This is the final step of financial planning, which helps you in your retirement years. Most people forget this part as half of their lives fade away in paying EMIs and debts. Here are some essential tips to secure your autumn years without relying only on your children.

    • Keep in mind to save a minimum of 15-20% of your monthly income as soon as you start earning.
    • Invest a certain amount of your savings in an index fund for 20-30 years and add 10% extra each year. 

    It is not always necessary to aim for high-yielding investments. Understand the balance of low and high risk before investing. A combination of low- and high-risk investments can help you grow your money steadily while staying financially secure.

    At the time of your retirement, the cumulative amount will be more than enough to secure the rest of your life.

Worried About Emergencies? Start Planning Now

Please enter correct name Please enter the Full name
Please enter valid mobile number Please enter Mobile Number
Please enter valid email Please enter Email
Consent is required

Enter OTP

An OTP has been sent to your mobile number

Didn’t receive OTP?

Application Status

Name

Date of Birth

Plan Name

Status

Unclaimed Amount of the Policyholder as on

Name of the policy holder

Policy Holder Name

Policy No.

Policy Number

Address of the Policyholder as per records

Address

Unclaimed Amount

Unclaimed Amount
Error

Sorry ! No records Found

.  Please use this ID for all future communications regarding this concern.

Request Registered

Thank You for submitting the response, will get back with you.

Why Do I Need to Do Financial Planning?

Financial planning is a step-by-step approach to managing one’s expenses and savings, which benefits individuals in the long term. Here are some of the major reasons why one should have financial planning.

  • Savings: This is the primary reason why financial planning is important in our lives. The money you save or invest can help you and your family in unfortunate circumstances. Over time, consistent saving habits can help you build a solid financial cushion for both short- and long-term goals.
  • Analyse Your Financial Position: It is a great tool to study your current financial situation. You can analyse your income, expenses, and whether you can achieve your goals. This can help control unnecessary expenses and let you spend your hard-earned money wisely.
  • Family Planning: Financial planning can take into account all your family's incomes, debts, and health insurance. In this way, you can achieve an effective family plan, such as planning your child’s education. With a clear financial roadmap, you can support your family’s needs confidently without compromising your financial health.
  • Dealing With an Emergency: Creating an emergency fund through financial planning can help you deal with mishaps like natural disasters, job loss, and other economic crises. This buffer can reduce stress and keep your long-term investments untouched during crises.

Conclusion

At first, financial planning may sound like a tricky task. However, a handful of tips and consistent habits can help ease the job and let you save a lot of money.

Envisioning a secure future for themselves and their family is everyone’s right. Thankfully, effective financial planning can help you utilise your hard-earned money to achieve a fruitful life ahead. These strategies of financial planning are extremely useful for the salaried employee for an economically stable life.

Disclaimer - This article is issued in the general public interest and meant for general information purposes only. The views expressed in this blog are solely those of the writer and do not necessarily reflect the official policy or position of Canara HSBC Life Insurance Company Limited or any affiliated entity. We make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability, or availability with respect to the blog or the information, products, services, or related graphics contained in the blog for any purpose. Any reliance you place on such information is therefore strictly at your own risk. You should consult with a qualified professional regarding your specific circumstances before taking any action based on the content provided herein.

Recent Blogs

Why Does Liquidity Matter in Financial Planning?
02 Jan '26
1054 Views
8 minute read
Learn what liquidity means in financial planning, why easy access to funds is important, and how liquidity helps manage emergencies and short-term needs.
Read More
Financial Planning
What Is the Right Way to Start Investing in Your 20s?
28 Dec '25
1082 Views
10 minute read
Learn how to invest in your 20s by balancing risk, building good habits early, choosing the right assets and setting the foundation for long-term wealth.
Read More
Financial Planning
Why Financial Planning Is Important for Long-Term Security?
27 Dec '25
4909 Views
11 minute read
Learn why financial planning is important, how it helps manage income, expenses and risks, and why it is essential for achieving long-term life goals.
Read More
Financial Planning
Best Investment Plans for 5 Years in India 2026
27 Dec '25
1549 Views
8 minute read
Explore the best investment plans for 5 years that balance returns and risk, helping you meet medium-term financial goals with stability and smart planning.
Read More
Financial Planning
Net Present Value (NPV): Full Form, Meaning & Formula
26 Dec '25
3900 Views
10 minute read
Net Present Value (NPV) measures an investment's total value and profitability. Learn how NPV helps in investment planning with Canara HSBC Life Insurance.
Read More
Financial Planning
How Can You Calculate SIP Returns in India?
26 Dec '25
886 Views
8 minute read
Learn how to calculate SIP returns, understand expected vs actual returns, use formula or calculators, and plan investments effectively for long-term wealth creation.
Read More
Financial Planning
Internal Rate of Return (IRR): Meaning, Formula and Usage
24 Dec '25
3869 Views
10 minute read
Understand Internal Rate of Return (IRR), its meaning, and calculation formula. Learn how it measures investment performance with Canara HSBC Life Insurance.
Read More
Financial Planning
What is a Fixed Deposit: FD Meaning, Benefits & Types
24 Dec '25
1288 Views
11 minute read
A fixed deposit (FD) is a financial instrument that allows you to invest your funds for a fixed period and earn returns at a fixed rate. Visit this section to understand in detail about FD.
Read More
Financial Planning
What Will Be The Value of Rs 1 Crore After 20 Years?
23 Dec '25
2927 Views
10 minute read
Find the actual value of Rs 1 Crore after 20 years. Why should you save Rs. 1 Crore, and how can you ensure a higher value for your wealth?
Read More
Financial Planning

Financial Planning - Top Selling Plans

We bring you a collection of popular Canara HSBC life insurance plans. Forget the dusty brochures and endless offline visits! Dive into the features of our top-selling online insurance plans and buy the one that meets your goals and requirements. You and your wallet will be thankful in the future as we brighten up your financial future with these plans.

Fixed Returns, Zero Risks & Worries

iSelect Guaranteed Future Plus
  • 4 Plan options
  • Life cover + Guaranteed benefits
  • Accidental death benefit
  • Premium protection cover

Save, Dream, Plan. Live Peacefully

iSelect Guaranteed Future
  • 5 Plan options
  • Option to choose PPT
  • Get Tax benefits
  • Premium protection cover