The twenty’s and thirty’s are the most productive periods in one’s life because what one does in this period determines his/ her success in wealth creation, a continued comfortable life and financial security.
Here are some tips that could be useful:
1. You need mobility but not in a high end car that needs that extra 5-8 lakhs which could be saved in a bond or a good stock.
2. Dining out with family and friends is fun and relaxing but spending huge money every week is a drain on your pocket. Instead use that money to buy mutual funds through SIP or invest in insurance products.
3. Branded clothes, shoes and hand bags look appealing to others’ eyes but what other benefits do they offer? A stitched or a less costly outfit also fits well on you and saves you a lot of money that can buy the most essential need of your family. A huge wardrobe may amplify your life style but frankly do we need all those dresses that are worn very rarely?
4. Costly smart phones or gadgets fulfil your esteem needs but the cost of owning them could help you to upgrade your professional skills or go on a short holiday with your loved ones. A less expensive phone does the same work.
5. Dating is good to know about your future partner, but ensure you are off if it doesn’t work out for both in a few meets. Expensive on the wallet.
6. Ensure your passion doesn’t stretch you on the dollar, unless it turns into a livelihood. Paintings, Intercontinental travels, accumulating real estates, piling up on stocks or owning a summer resort are all for the deep pocket biggies. Not for someone who waits for the pay check every month.
7. Acquiring assets on EMI is enticing but unknowingly you pay more by way of interest that otherwise could have funded other important expenses. First time buys like home, car etc is fine but second time, third time…gets you in debt trap.
8. If both husband and wife work, the double engine makes the life chugging along nicely. Extravagance lures you but during uncertain times ( like Covid times) could badly hit either of you and you need that extra savings to get on track.
9. If you are from a large family of siblings, pressure is enormous if sisters are to be married off in your income. You need all that savings to support when your parents cannot. Family is important than a flashy life style.
10. Friends may be the lifeline for many but underwriting their debts get you in deep mess when they default and you are legally mandated to pay for their loans from your income.
It’s not about tightening our waist belt. Just think about Kitty bank that we were so fond of in our childhood. Let us continue that habit !
THE PULSE by Sivakumar Gopal 