Financial masterclass for young people
How to manage your money
It’s sad how many young workers don’t understand the power of investing.
How you invest and manage your income, specially when young, is way more important than how much you make.
Someone who invests merely 4-5k rupees every month in their 20s will see it becomes crores in their retirement age - this can fund your health, lifestyle, travel when you are older at not a big cost to your present.
Here are three rules of money for youngsters:
Rule 1: Be consistent
You don’t have to make a million rupees to win. Even saving small amounts matters in the long run. Most importantly, it teaches you how to be disciplined and budget well.
Every month the moment you get your salary or pay, take a 5-10% part of it and invest into an index or large cap mutual fund rightaway. This is called an SIP (systematic investment plan) and can be automated.
As your income and knowledge grows, you can start looking into individual stocks and small/midcap mutual funds. But for now, this will suffice.
Rule 2: Don’t forget to live
There’s another hilarious side of the internet which preaches to save every penny for your retirement and enjoy in your 60s.
This never makes sense to me as the value of travel and experiences is more when you are in your 20s and 30s. You will grow older, less energetic, and burdened with responsibilities.
You’ll probably not even have the time and energy to enjoy the money you saved (not to mention, many people die before or shortly after retirement - there go your SIPs!)
While it is important to save for the future so that you don’t starve if your income stalls, its equally important to enjoy what you have TODAY.
Rule 3: Get another income stream
A side hustle, a small business, freelancing, part time job - but the rule is that this income must 100% be invested. If you look at it this way, even a 5-10k rupees side income stream will make you motivated as all of it pours into your investments.
Jobs are very unstable in 2026, you never know when you are laid off. If you build a small business on the side, you can slowly even replace your job with it!
The peace of mind you get when you earn even Rs 1000 from another source is priceless.
- Kalpit Veerwal
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