Landing your first job is both exciting and challenging. When you complete your education and get a job, you are entering a situation when you will be earning and will not have to depend on someone else to provide for you. It is understandable that you will want to spend the money you earn on luxuries and things which you have wanted for long; but it makes financial sense to do a few essentials as soon as you get your first job. Here is a quick list of what you should do at the beginning of your career to start your path on a healthy financial future.
Get yourself a PAN Card: The Permanent Account Number or the PAN Card is important for you to file your income tax returns. Although you can get a PAN Card even when you are studying, if you find yourself without a PAN card when you start work, you will have to apply for one immediately. All companies will require your PAN number when you start working for them, especially if you fall under the taxable bracket. However, some small companies do not make this mandatory if your income is very less. Nevertheless, it is your duty to get a PAN card at the earliest. This is because, all important transactions like purchasing a car, a house etc. require a PAN card. It is also a good proof of identity. It is very easy to apply for a PAN card, and you can do so online also.
Start investing in a mutual fund scheme: Saving small amounts from a very early stage can do wonders in building a good corpus over a period of time. As you start early, you can benefit from compounding. As you are young, you can take high risk and invest in equities for the long term. It is always better to invest in equities using the Systematic Investment Plan route. Start an SIP in a good quality mutual fund for the long term. This will bring about discipline and help in regular savings. It will also help you avoid spending on unnecessary expenses. If you find yourself with surplus cash, you can invest in 2-4 mutual fund schemes across different categories. It is not necessary for you to invest in all 4 schemes immediately; but you should make a starting point and start investing in atleast one good mutual fund scheme as soon as you get your first salary.
Save for the house you plan to buy: Buying a house is every Indian’s dream and requirement too. You are not going to purchase a house as soon as you get your first job. But it is important to start saving for the down payment. This is because banks give you a loan only for 80% of the value of the property. You will also have to meet other expenses like registration, stamp duty, society charges and other charges from your own pocket, as the bank will only fund the value of the house. So this means you will need a substantial corpus for the down payment when you are ready to buy. So the wise thing would be to put aside a specific sum on a monthly basis, either in a recurring deposit or in a debt fund as this will be safe. If you think your goal of purchasing a house is 5 years or more away, then you can also consider investing in equity mutual funds through the Systematic Investment route.
Start a Public Provident Fund account: A PPF account is ideally suited for retirement. As you have just started working, you may tell yourself that retirement is the last thing you should worry about. But it does not harm to plan ahead. PPF is a useful saving option, giving you risk free and tax free returns. Further, the returns are assured, as it is backed by the Government of India. Many people already have an Employee Provident Fund account in their company and would therefore think it is unnecessary to open a similar account. However, PPF is independent of the company where you work, and hence will remain in place even when you shift jobs. You can also get income tax benefits when you invest in PPF. As you start earning, your retirement plan is also in place, and you can slowly start building a retirement corpus for a secure future.
Buy life insurance: Purchasing a life insurance is an important part of setting your finances in order. This becomes very critical if you have someone dependent on you. You could be supporting your parents financially or you could be paying for your sibling’s education. You could also be married, and have a dependent spouse. In this case, you should take adequate life insurance cover, so that your dependents can lead a comfortable life even in your absence. Assess your liabilities and responsibilities and determine the right amount of cover you need. You should always buy a term cover to protect yourself and your family and do not opt for fancy products like ULIPs, Endowment and Money Back plans. 

The author is the CEO of BankBazaar.com