Young Indians Should Prioritize Earning and Investing: Cars, Bikes & Love Can Wait!

Life is exciting when you’re young. You’re out partying, making new friends, and maybe even falling in love. It’s easy to get caught up in the fun. But there’s something super important you need to think about: money. Yes, and it IS more important than getting that cool motorcycle or car.

Why Focus on Earning and Saving?

You might why wonder why we, as an automobile website, are telling you to hold back on cars and bikes. The reason is simple: Your future is more important than acquiring them today. You can get them all tomorrow, if you plan your earning and savings and investments well. Basically, wait a bit and focus on the critical things and you can acquire your favourite convertible or sportsbike in the future.

Starting early with earning and saving can set you up for a stress-free future. Here’s why:

Compound Interest

This is like magic. Imagine you save ₹5,000 every month. If you invest it at a 12% interest rate, in 10 years, you’ll have over ₹11 lakhs. In 20 years, it grows to over ₹49 lakhs. That’s the power of starting early.

But that’s just the beginning!

What you saw above is simple investing. But if you are willing to spend some time and learn, you can invest in many different ways that bring you far higher returns! Forget Fixed Deposits as your parents did – you can invest in mutual funds, stocks or real estate. And there is more, which we won’t go into right now. This is a huge topic, and we just want you to start thinking.

Financial Independence

Money gives you freedom. Want to quit a job you hate? Savings can help. Dream of traveling the world? Savings make it possible. Buying a Porsche Boxter? Of course. Just have patience. Investing right is all about having choices in the future.

Emergency Fund

Life can surprise you. Maybe you lose your job or have a medical emergency. An emergency fund with six months’ expenses can be a lifesaver. You won’t need to borrow money or stress out.

Where Should You Invest?

Knowing where to put your money is key. Here are some smart options:

Mutual Funds: These are like a money team. They pool money from lots of people to buy stocks and bonds. Professionals manage it for you. If you choose an equity mutual fund, you can get good returns. Debt mutual funds are safer and more stable.

Index Funds: These track a market index like the Nifty 50. They have low costs and steady returns. If you invest ₹5,000 a month, you’ll benefit from the market’s growth over time.

Systematic Investment Plan (SIP): SIPs let you invest a fixed amount regularly in mutual funds. It’s like a disciplined savings plan. For example, investing ₹2,000 a month in a good fund can grow a lot over 10-15 years.

Balancing Fun and Finance

Enjoying life is important, but so is saving. Here’s how to balance both:

Budgeting: Make a budget. Divide your money into savings, expenses, and fun. If you earn ₹30,000 a month, save ₹10,000, spend ₹10,000 on needs, and use ₹10,000 for fun.

Smart Spending: Have fun, but spend wisely. Find cheap alternatives. For example, cook at home and invite friends instead of dining out every weekend. Travel by bus and local trains when possible, and hire and auto rickshaw instead of a taxi or Uber. Stay in cheaper rented flats or houses. Live further away from the city centre, and save on rent. It is all worth the sacrifice. If you have to buy a motorcycle, skip the expensive sports bikes and buy a used commuter bike instead that would help you save money, that you can invest.

Prioritize: Think long-term. Skip an expensive vacation now to save more. It means you can afford a better trip later. The earlier you start the better. Every extra paisa, every extra month you get to save will benefit you tomorrow.

The Bigger Picture

Think about a future where you’re financially secure. No stress about money. You can make choices based on what you want, not what you can afford. Every rupee you save and invest now helps build that future. It’s not about missing out on fun now. It’s about having more fun later, without money worries.

The choices you make in your twenties are crucial. By focusing on earning, saving, and investing wisely, you’re setting up a great future. Financial freedom isn’t just about having money. It’s about peace of mind and living life on your terms. Start today. And wait for that car and that bike! Your future self will thank you.