The report highlights that 73% of undergraduate freshers expect starting salaries above ₹5 LPA, while only about 40% are able to secure that level of compensation.
The mismatch is shaping early-career financial behaviour, particularly around budgeting, savings, and discretionary spending.
Early income management under pressure
With entry-level salaries often falling short of expectations, financial experts suggest that first-time earners should prioritise managing fixed expenses and building basic financial buffers, rather than focusing on aggressive consumption or lifestyle upgrades.
Balasubramanian A, Senior Vice President at TeamLease Services, staffing solution and recruitment company, noted that income stability should remain a key priority in the early stages of employment.
He said essential expenses such as rent and EMIs should ideally be kept within 40–50% of monthly income, while employees should gradually build an emergency fund equivalent to 3–6 months of expenses. He also emphasised that early earners should maintain controlled spending habits and avoid dependence on credit in the initial years.
Savings and skill investment balance
Alongside traditional budgeting practices, early earners should also allocate a portion of their income towards skill development, including certifications and training linked to career growth.
Experts indicate that in the current job environment, spending on skills should be viewed as part of core financial planning alongside savings, rather than as discretionary expenditure.
Ankit Aggarwal, Founder and CEO of Unstop, a community engagement and hiring platform, said early income planning should shift towards capability-building in addition to financial discipline.
He noted that structured investment in skills such as certifications, hackathons, and applied learning is relevant as young professionals seek to improve long-term earning potential.
Financial behaviour in early careers
Overall, early-career financial management should move beyond conventional savings-led approaches. First-job earners should aim to balance essential expenses, emergency savings, and targeted investment in skill development as part of a more structured approach to managing income in the initial years of work.
