First Salary, First Investment: A Money Plan for 20-Something Professionals in Pune

For most first-time earners without large deductions like home loan interest or significant 80C investments already committed, the new regime's lower slabs and ₹12 lakh effective rebate threshold usually work out better — but it's worth a quick comparison each year, especially once you start claiming deductions like HRA or an 80C investment.

There's no universal number, but 20% is a reasonable target to build toward within your first year or two — starting lower and increasing it with each raise is far more sustainable than trying to hit 20% immediately and abandoning it after two difficult months.

It's the opposite — the years between 22 and 30 are worth more to a retirement corpus than almost any other decade, purely because of how many compounding years remain. A small SIP started now does more work than a much larger one started at 35.

Mutual funds (via SIP) are generally the more forgiving starting point — professional fund management and built-in diversification reduce the risk of a beginner's mistake in stock-picking wiping out early enthusiasm. Direct stocks can come later, once you've built some experience and a base portfolio.

Start with the emergency fund first, and treat any SIP as flexible rather than fixed until your income stabilises — our companion guide on freelancer and irregular-income money management covers this specific situation in more depth.

Mostly. Interest on EPF is tax-free, except interest on your own contributions above ₹2.5 lakh a year (₹5 lakh if your employer does not contribute), which is taxable. EPF earned 8.25% for FY 2025-26. Withdrawals after five years of continuous service are generally tax-free, so avoid cashing out EPF when you switch jobs; transfer it instead.

Usually yes. You must file if your gross total income is above the basic exemption limit, which is ₹4 lakh under the new regime, even if the Section 87A rebate brings your tax to zero. Filing also lets you claim refunds of excess TDS and builds a record that helps with loans and visas.