Simple Investment and Savings Advice for Youngster

Keywords used by Youngster

 The tendency to spend money on materialistic items or to have fun is one thing that unites young people all around the world. Young people will frequently search for things like "latest mobile phone," "price of iphone," "latest fitness band," and "pubs near..." Never will savings or investment-related search phrases be used. Nobody in their early 20s wants to look up the "best savings plans" or "investment plans." The individual does not become aware of the need to save money until he is in his 30s, when he may need the money for retirement, a home purchase, etc.

 Why do young people's search keywords not include "savings and investments"?

 However, why is it that way? A man who can afford to spend Rs. 30000 on the newest phone can undoubtedly afford to set aside Rs. 2000 each month for investing. The significance of investments and savings is what is disregarded. Savings and investments evoke visions of big sums.

 People continue to wait for that "extra" income because they believe that only when you have a large income can you save and invest. Teenagers and children have the wrong idea about this. By offering some simple advice to children so they can develop the habit of saving and investing, we aim to remove this myth.

 1) Set short-term, medium-term, and long-term financial objectives. When the time comes, decide how much money you'll need to achieve these objectives. daily reading You will gradually become motivated to achieve these goals as the idea of achieving them seeps into your subconscious.

 2) Develop a budget. You might be surprised at how much money you are spending on things you may not need, even if you are single and not the main breadwinner at home. Warren Buffet once said, "If you spend money on things you don't need, you might one day end up raising money by selling things you need." Always remember to spend what is left over after saving, rather than the opposite.

 3) Begin modestly. If your monthly income is Rs. 15,000, set aside Rs. 2000 at the beginning of the month in a systematic income plan (SIP) or recurring deposit. To avoid being tempted to spend this money, set up an auto-debit in your account for this SIP.

 4) You should also include "savings and investments" in your search phrases. Although you might not comprehend these phrases at first, the more you practise, the more comfortable you will get with them.

 5) Purchase a term insurance plan, for example. The rates will be lower while you're younger. The cost of insurance will rise as you get older. So it makes sense to purchase a term plan while still young.

 6) Invest in strategies for increasing wealth. Your chances of benefiting from compounding are very high if you make early investments. The concept of compounding states that when interest is generated on top of further interest, your money multiplies more than the sum of the main and interest. As a result, if A invests Rs 10,000 today at a rate of 10% per year for 10 years and B invests the same sum in five years at the same rate, neither will end up with the same sum of money. Due to the compounding principle, this is possible.