Age Is Just A Number: Start Investing Young!

At a tender age, we are all busy spending money- be it on goods and items, or one Apple smartphone, or some expensive nightclub gala, or anywhere that fits into the budget. But, then not all our spendings are an investment. And our parents constantly nudge us to save money, right? And that sounds pretty boring especially when there’s so much to explore beyond those FDs and PPFs.

For instance- There’s that little irritation called the monthly rent outgo- as your job has forced you to move out of the comfort of your parents’ house and relocate to another city, and the daily expenses of living alone are not as easy on the pocket as you thought they would be. And don’t forget the car… it’s a must before you turn 26, right?

But the question remains: where is the money to invest?

Consider what is written below to take a headstart!

Starting out

It is not unnatural to have a relatively low amount of savings early in one’s professional life; that is nothing to despair over. Look at the brighter side: the big advantage of being young is you are starting early, and small savings add up to something substantial over the years.

Enter the world of investment confidently

The Indian economy has enough reasons to make you feel low. For, the Indian equity market will be on a growth trajectory over a long period of time – till you are about 43-48 years old, depending on your age now. So, investing in the market keeping a long-term perspective makes sense.

Most importantly, choose an amount to invest that you’re comfortable with. One of the major reasons you may be delaying investment would be because you don’t think you have enough money to invest.

Setting goals

Break down your goals for the next five years (the short term), and for the next ten years (the long-term), to make it easier to start focusing on funding them. These goals are not career targets, but more worldly ones that require finances: for instance, buy a car in two years, get married and honeymoon abroad in the next five, etc., work out the estimates.

Steady savings

While making investments is essential, there are other emergencies you need to plan for. What happens to all the money you’ve saved, if you suddenly need to spend it all on hospital bills, post an unfortunate event? Or spend it on getting your car fixed, after a massive accident? These events can’t be predicted, but they can be planned for. That’s where insurance comes in.

Start off with life and health. Contrary to what you might think, these policies are cheaper, the earlier you buy them.