Financial advice

I would give to my

younger sibling

As an older sibling, one of my biggest responsibilities is ensuring my younger brother and sister don ’t make the same mistakes I did.

So, here ’s some financial advice for them that took me years to learn.

Develop the habit of saving early

  • Whether pocket money or birthday money, save a small part for something you may want later

  • This becomes more important in your 20s; save 10% to 15% of your earnings regularly, for the future.

Start investing as soon as possible

  • Make investments a priority in your 20s

  • Investing an amount as small as Rs. 500, every month, can amount to almost Rs. 5 lakhs, after 20 years (at an annual return of 12%).

Stay Healthy

  • Your body remains fit until a certain age ; after that, you will have to make an effort to look after it

  • Eat right, sleep well, exercise and insure your health. These can cut down unnecessary medical costs

Follow a Budget

  • Note down all your fixed monthly expenses (rent, mobile and electricity bills, investments etc.)

  • Only after clearing the fixed dues, should you spend on undecided expenses

Build an emergency fund

  • Put aside an amount monthly (ideally 10% of your income) in a separate account

  • This way you will be ready to deal with any emergency that arises