How can you make your money work for you? A beginner’s guide to long term investing

Imagine you’re a young 20 something just starting off your career. You have sailed through your probation period and have spent the last 30 days working hard. Perhaps you’re a doctor on your House Job, starting out a management trainee programme at a bank or a telco, or as a research assistant somewhere. 

The phone pings and you get the message. Your first salary has just been credited. After the initial euphoria, there is likely to be that first moment of surprise and betrayal. The amount sent to your bank account is not the amount that was written in ink in the contract. Slowly the realization hits that the taxman has taken out his own cut. The company mandated to withhold a part of your salary has done their job while the sleepy bureaucrats at FBR have legitimized another round of perks and gifts for themselves.

You pay off some of the expenses that were pending and at the end there is a nice chunk of change left over. What to do with this now? One of your friends was talking about investing in the stock market and taking advantage of the recent dip in prices. Another had mentioned that there are mutual funds which can help build this savings into something substantial. Then the acronym VPS enters your mind which was being discussed by the Human Resource manager while you were signing your contract. 

For many young professionals, one of the biggest financial goals is to look to build their savings today which can last them for their tomorrow. Salaries that are being paid right now are used to cover some of the expenses that are being faced in the present, but there is an eye on the future to make sure that future family responsibilities, housing costs, inflation and retirement is paid for what is saved from today.