4. Start contributing for retirement plans: When it comes to young professionals, planning for future or retirement is important. Most employers offer a private pension plan to provide their employees with retirement benefits. It is advisable to contribute at least 10 percent of your income before taxes to your retirement fund. Retirement plans have several advantages for young professionals like you get “free money” if your employer matches your contributions, you get to pay less income tax as contributions reduce the amount being imposed and finally, automatic withdrawals directly from your paycheck will help you to save even without thinking about it.

5. Take insurance policy for yourself: Taking insurance policies can help you in many ways. There are different kinds of insurance that can be taken, for instance, life insurance policy, automobile insurance, and health insurance. When you take a life insurance you pay a small amount of money from your salary every quarter or every month, this money is saved by the insurance company and given back to you as a lump sum amount after a certain period. This might also cover your medical and family expenses sometimes. If your car is damaged in an accident and if you have taken an automobile insurance, all the expenses of damage will be taken care of by the insurance company; this way you save a lot of money.

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