Looking for some Financial advice
To a relatively new adult, what financial advice(s) would you give on how to and where to invest my money?
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When you start investing often matters more than the amount due to compounding. Would suggest investing in index funds via monthly SIPs for long term goals.
Liquid funds over keeping money in savings accounts.
Keep some funds in debt as retirement corpus and for 80C savings - PPF is a good option.
Don’t take risk in debt by using P2P lending apps, better to invest in equity instead.
Also generic spending advice - use credit cards like debit cards, i.e., only spend an amount you have in your bank account.
Save first and then spend. Max out 80c. Take a term insurance.
What u save .invest in both debt and equity via mf.
Age# %= nifty50etf
100-age= in equity
Taking insurance is something that I would've completely missed. I don't know why, things for yourself never occur to you 😭
Thank you so much!
Till you hit like 50% of your peak salary, invest in yourself first. Otherwise simple index fund SIP and nothing else. But YOU first! Nothing can beat the gains you will have by investing in yourself. That + decent family health insurance + 1.5 cr term insurance should be good to start.
- Take a term insurance and health insurance for yourself (it will be cheaper now)
- Save atleast 50% of your salary if you can
- Use credit cards, build your credit score
- Maximize tax deductions wherever you can
- Build an emergency fund of 6 months of your expenses (so you always have peace of mind and don't have to worry about paying next month's bill if you are laid off)
- Start a monthly SIP of 80% of investable income in Nifty and Bank Nifty mutual funds or ETF
- Invest 20% of investable income in large cap, mid cap and small cap mutual funds
- Learn more about investing if you are interested in it and slowly start deploying capital in individual stocks
Those are some really good points! Thank you 😊
buy a house early in good location via emi and pay quick, real estate is going to pump up 20% more.
What if you're not sure where you are going to settle?
My family has a very big house near Kolkata where we live. My father is again planning to buy another house in Kolkata itself, I tried go convince him not to but he wants to buy as he wants to pive there. I will probably need to relocate to Bengaluru/NCR for job in future. Currently I work remotely. What should we do?
Start early, invest regularly. Diversify across stocks, bonds, real estate. Seek professional advice. Remember, Rome wasn't built in a day, was it?
Invest keeping specific goals in mind and not for Saving Tax.
DO NOT BUY ANY LIC PLANS SUGGESTED BY UNCLEJI/AUNTYJI/PARENTS' FRIENDS.
Keep investment simple and do not disturb the compounding.
Do review once a year and repeat the cycle forever.