I am too young to start investment...Do you really think so??

Hi Friends,

You are probably among the many young guys like me who have left their parent’s home in pursuit of a career, a better pay, respected position, fame or simply to find yourself and grow in life. As easy as it may sound, living alone has a lot more responsibilities than you can think of. Tasks like house hunting, paying rent on time, managing daily expenses, watching movies, traveling to work, spending on food and after all this sending some money back home, can take a toll on your finances.

Financial planning success is bit easy to attain when you are young and ready to take little bit of risk.

I am sharing my financial plans with you which would be almost same for every one of us.

It was really not possible for me to buy an expensive bike at one shot, I planned for it and manage to get it thru dedicated SIP investment for it. 

Short to medium term planning is as important as long term goals. If you plan to buy a bike in a few years, you will need a lump sum for the down payment. You may also have the yearn to travel different places, planning for engagement or wedding, further education and so many. But well with a bit of planning it can be done.

Investment Mantra- “3 Investment concept or 3i concept”

Friends like Dr. Scruwala’s Three ball concept { in the movie Kya cool hai hum}, I too believe in three asset class or say investment options which are very effective tools of wealth creation and risk mitigation.

1.} Term Insurance-: Term insurance, as the name itself explains, is for a specific period of time, and has the lowest possible premium among all the other insurance plans available. The main reason to go for insurance is “Protection” and never to get returns from it.  Term plans are cheap and gives best protection for any future eventualities.

2.} Systematic Investment Plan {SIP}-: As an investor we should always look forward to invest in an asset class which gives us best returns on time so we can meet our goals.

Example-: Assume you have goal of accumulating 6 Lacs in 4 yrs for your wedding. It is better to go for Monthly SIP {benefits- Power of compounding and no need to time the market} in equity mutual funds and balance fund as need are coming after 3-4 yrs. And Equity mutual fund gives good returns in long term.

3} Fix Deposit- fix deposit is very fruitful investment option for people who fall under 10% tax bracket. It also gives assured returns with almost nil risk.

Conclusion

It's not too early to start planning for your future and saving for your long term goals. Consider the big picture. Do dedicated investment to each of your goal and see your dream coming true. The decisions you make today about your career, education, debt and retirement will stick with you and shape your future. So, invest in yourself.