For start-up workers, the newly acquired taste of financial independence can be tricky to keep discipline in their finances.
Before the coronavirus epidemic caused severe damage to the economy, Saket Mishra (name changed), an IT specialist who started working less than two years ago did not feel the urgency to start saving seriously. “To start over, I received a good paycheck, and while it was a great blessing, it added to my self-esteem. The fact that I could no longer answer to anyone for how I spent money gave me a lot of strength. Both of these things made me believe that it was okay to blow up as much as possible and I could always start saving later. ”
It was only when Saket’s older brother lost his job during the lockout that he was forced to reevaluate his financial position. “It was a very difficult time for the family and seeing the trials and hardships my brother was going through, I realized it was the right time for me to start using my money wisely.”
For start-up workers, the newly acquired taste of financial independence can be tricky to keep discipline in their finances. Whether it is YOLO (You only live once) under the desire or desire to enter the game of having the ‘Gram’ of life chosen, the design between needs and wants can fade and the wish list will never seem to stop growing. According to the Deloitte 2020 Millennial Survey, 50% of millennials and 37% of Gen Z respondents said they were often under stress because of their daily finances.
Time and magic combinations are waiting for nothing
Overcoming the urge to postpone savings and investing early can increase the capacity for integration. Parvati Iyer, chief investment officer at Femwealth.com, an online investment management forum advises, “For years on your side, a good time to start quickly and reap the benefits of integration. “Start-up and consistency should be a mantra. It is a common investment where markets go up or down that play a very important role in ensuring a good return. Consolidation works to make even the smallest investment can be very helpful.”
For Mishra the regret of spending a lot of money on satisfying the constant itching to look good – which is an amazing amount, he says – made him realize the importance of not forgetting the big picture in life. “If I had to start investing immediately after I was hired instead of spending a lot of money working at a club eating out and pampering myself, I would have enough money to fund my master’s degree without thinking about study loans.”
Surya Bhatia, senior consultant to Asset Managers, says, “It is important to develop a saving habit as soon as you start your career. People often have the misconception that a small start will not lead to big money savings so they do not start saving soon but it is important to remember that only when you make a habit of saving regularly and have enough savings can you start investing. Delaying money can cause you to miss out on the power of consolidation. This amount does not apply – even if it is already ₹ 500 at first, it is best to start saving and not wait for your salary to increase. ”
Keeping it simple
While financial discipline may not be the best thing you can do for a day, there are many ways to choose a course that suits you and helps you stay on track. “Setting realistic goals for yourself can have a detrimental effect,” explains Iyer. A few failed attempts to stick to a higher strategy and you will be reduced enough to stop making any efforts.
A good strategy for new payers is to pay for yourself first which is when the salary comes in, the first thing they need to do is take out a lump sum and invest it right away. This ensures that you do not spend your income, thus keeping a good saving and investment habit alive. You will then be living within your means and in control of your financial future. Learning a little about money and avoiding debt while shopping will save you a lot of hard-earned money. ”
In addition to using simple savings hacks, it is also important to choose investment vehicles that are easy to understand and monitor. Says Bhatia, “Early adopters in the field of financial management should not try to make things difficult and make things easier. Mutual investment is a great option because it is not difficult to understand and you can actually start saving and investing every month with low cost SIPs. Depending on your goals, you may have a combination of loans and joint ventures in your portfolio. Equity is a step forward for long-term goals and especially for young professionals because they have long lives ahead of them. ”
Iyer asserts: “Equality as an asset class offers excellent returns and efficiency as well as holding time increases. The more the risk decreases and over time. Simple calculations will show that investing in a mutually funded fund through a steady stream means that the SIP, over a 30-year period can provide exemplary benefits, taking care of goals such as easy retirement. An investment vehicle can be a functional or non-functional investment. ”