I always wanted to talk about personal finance. This is something I developed deep interest after being educated from a fellow colleague few years back in the memory lane. That realisation will probably never leave me.
I believe on the principle that money is a need in life but life has more to it. I'd advise to pay attention to this subject and establish a good discipline and awareness in the early years of your job.
Invest in yourself. Be confident, try things and fail, until you discover your passion. And you will see, along the journey you would start making money. Keep also your health in your priority list.
Build a conservative approach of spending what is left after saving. In the long run, this will pay off better. Remember the earlier you start, the better it is, relying on the magic of compounding.
There are multiple options to Invest like Bank FD's, Savings Account, Gold ETF, Bonds, Stocks, Mutual Funds, Tax saving instruments like PPF, NPS etc
If you are a salaried employee, the first step should be to start saving from the early years of your career and build an emergency fund. This amount should always be liquid, so should be kept in savings account or flexible sweep-in FD's. You should have a minimum of 6 months of your living expenses in your emergency fund.
Next, educate yourself to invest in mutual funds or directly in stocks. This is necessary to beat inflation, as investment in mere Bank FD's cannot cope up with time value of money. Start with less money, you will make mistakes no doubt, but learn from them to move on. Over the long run, you would have made your money grow better than it would be in Bank Savings or FD. Never invest aggressively in Equity, never try to time the market.
Invest some part of your savings into Bank RD or FD. For a young salaried employee, this could be a small portion here and more into stocks. As you grow older, you should increase your savings portion in FD's and reduce in Equity. This is to ensure that your capital is safe.
Invest in tax saving schemes like PPF or NPS to avail tax benefits. I'd advise to open PPF account from the first year of your career, due to a lock in period of 15 years.
Once you have saved a good amount of money, try and invest in real estate. Real estate investments are more conservative but requires a huge capital.
All the best. The key is to start early and remain disciplined.
What good is an investment if it doesn't let you sleep at night ? Always remember to smile, be generous and enjoy your life.
This post is a maiden attempt to thank my mentor (Sapan Gupta), a many hundred times for providing the spark and encouragement in the field of Personal finance.
I believe on the principle that money is a need in life but life has more to it. I'd advise to pay attention to this subject and establish a good discipline and awareness in the early years of your job.
Invest in yourself. Be confident, try things and fail, until you discover your passion. And you will see, along the journey you would start making money. Keep also your health in your priority list.
Build a conservative approach of spending what is left after saving. In the long run, this will pay off better. Remember the earlier you start, the better it is, relying on the magic of compounding.
There are multiple options to Invest like Bank FD's, Savings Account, Gold ETF, Bonds, Stocks, Mutual Funds, Tax saving instruments like PPF, NPS etc
If you are a salaried employee, the first step should be to start saving from the early years of your career and build an emergency fund. This amount should always be liquid, so should be kept in savings account or flexible sweep-in FD's. You should have a minimum of 6 months of your living expenses in your emergency fund.
Next, educate yourself to invest in mutual funds or directly in stocks. This is necessary to beat inflation, as investment in mere Bank FD's cannot cope up with time value of money. Start with less money, you will make mistakes no doubt, but learn from them to move on. Over the long run, you would have made your money grow better than it would be in Bank Savings or FD. Never invest aggressively in Equity, never try to time the market.
Invest some part of your savings into Bank RD or FD. For a young salaried employee, this could be a small portion here and more into stocks. As you grow older, you should increase your savings portion in FD's and reduce in Equity. This is to ensure that your capital is safe.
Invest in tax saving schemes like PPF or NPS to avail tax benefits. I'd advise to open PPF account from the first year of your career, due to a lock in period of 15 years.
Once you have saved a good amount of money, try and invest in real estate. Real estate investments are more conservative but requires a huge capital.
All the best. The key is to start early and remain disciplined.
What good is an investment if it doesn't let you sleep at night ? Always remember to smile, be generous and enjoy your life.
This post is a maiden attempt to thank my mentor (Sapan Gupta), a many hundred times for providing the spark and encouragement in the field of Personal finance.
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