For youngsters SAVINGS word sounds so boring and old because the young India does not see its future with pessimism. There is a confidence about their ability to earn, to find another job, to change vocations and pursue dreams. Rather INVEST is the word to be used for Young India. However the Young India has to take into account the culture of hiring and firing, fact that they have to fend for themself in old age since pensions have become rare, medical requirements have become expensive and average post retirement age longer.
So what should Youngsters reckon ?
- Invest early to enjoy the power of Compounding since a small investment made early in life can generate a larger amount than a larger investment made later in life.
- Even if you start small it will inculcate a financial discipline
- Choose investment options where your money grows, avoid traditional instruments since they only save.
- Take investment opinions from financially literate person so that you are aware of that the investment comes with specific return, liquidity and risk features and that the choice has to align with foreseeable needs.
- Know how to make intelligent your Tax investments.
- Take a proper Insurance to cover risk and uncertainty: don’t think of insurance as an investment.
Start Early, the secret of sound Financial Planning is early investing which gives the power of Compounding. If you can take little pain and invest more money now, then better do it, it will save you from lot of trouble later. Albert Einstein once said “Compound Interest is the eighth wonder of the world. He, who understands it, earns it. He who doesn’t, pays it.”
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