Money and Life Rules for Young Investors – The New Indian Express

Express press service

If you are in your twenties, this is the formative period for investing and this could form the basis of your investing life. Here are a few tips:

Invest bravely: This is the time for you to create your own start-up or invest with friends in their start-up. You could invest your time, your energy, your contacts to develop this. This investment could be game-changing – make sure you know when to exit if things aren’t going well. Have a clear exit strategy.

Choose a good advisor – take your time choosing someone who is about 15 years older than you – they will bring maturity and stability to your portfolio. If he’s your parents’ advisor, so much the better, but it’s important to be sympathized with him. If the wavelength matches, this person will be a good choice.

At this point in your investment journey, the “rate of return” on your money is not as important. What is very important is the “rate of money saved and invested”. If you save, say, 50% of your take home pay, you may be doing a great job. Make sure this number never drops below 30%. Once in a while in a given month is fine, but be sure to make up for the next month. Learn to spend far less than you earn. It sounds very simple, but you’ll be surprised how many people break this simple rule.

Get a credit card, but make sure you don’t use the credit part. This means that whatever you spend on a credit card, the FULL AMOUNT must be paid approximately 3-4 days before the due date. This will help you get (and keep) a good credit score. Anything about 750 is good, obviously the higher the better. Start investing – your advisor should be able to help you set your goals, select your mutual funds, get tax benefits, get cash, and start building your portfolio.

Remember that you don’t need to know how much you will need for retirement, however, you do need to start investing for the “big money” you will need. If you’re someone who still needs a number, aim for at least $2 million. In 40 years (when you retire) it won’t look as great as it does today, relax.

Set very strict rules for borrowing – buy a used vehicle to start with, remember that a car looks good but is high maintenance and costs a lot in terms of money. fines, bribes, etc. In most cases, a 2-wheeler can do the job. a good work. However, a car seems safer. Ultimately, make a decision based on affordability, family pressures, etc. when you make this decision. Remember that any EMI you pay must not exceed 30%. Always keep this discipline.

This is just the beginning, there will be more to come!

PV subramanyam
writes on www.subramoney.com and is the author of the bestseller “Retire Rich – Invest C 40 a day”

If you are in your twenties, this is the formative period for investing and this could form the basis of your investing life. Here are some tips: Invest courageously: This is the time for you to create your own start-up or invest with friends in their start-up. You could invest your time, your energy, your contacts to develop this. This investment could be game-changing – make sure you know when to exit if things aren’t going well. Have a clear exit strategy. Choose a good advisor – take your time choosing someone who is about 15 years older than you – they will bring maturity and stability to your portfolio. If he’s your parents’ advisor, so much the better, but it’s important to be sympathized with him. If the wavelength matches, this person will be a good choice. At this point in your investment journey, the “rate of return” on your money is not as important. What is very important is the “rate of money saved and invested”. If you save, say, 50% of your take home pay, you may be doing a great job. Make sure this number never drops below 30%. Once in a while in a given month is fine, but be sure to make up for the next month. Learn to spend far less than you earn. It sounds very simple, but you’ll be surprised how many people break this simple rule. Get a credit card, but make sure you don’t use the credit part. This means that whatever you spend on a credit card, the FULL AMOUNT must be paid approximately 3-4 days before the due date. This will help you get (and keep) a good credit rating. Anything about 750 is good, obviously the higher the better. Start investing – your advisor should be able to help you set your goals, select your mutual funds, get tax benefits, get cash, and start building your portfolio. Remember that you don’t need to know how much you will need for retirement, however, you do need to start investing for the “big money” you will need. If you’re someone who still needs a number, aim for at least $2 million. In 40 years (when you retire) it won’t look as great as it does today, relax. Set very strict rules for borrowing – buy a used vehicle to start with, remember that a car looks good, but is high maintenance and costs a lot in terms of money. fines, bribes, etc. In most cases, a 2-wheeler can do the trick. a good work. However, a car seems safer. Ultimately, make a decision based on affordability, family pressures, etc. when you make this decision. Remember that any EMI you pay must not exceed 30%. Always keep this discipline. This is just the beginning, there will be more to come! PV subramanyam writes on www.subramoney.com and is the author of the bestseller “Retire Rich – Invest C 40 a day”