Suggestion on investing money
25F, earning 18 LPA. I come from a lower middle-class background and don’t have any financial assets yet (no house, no gold, etc.), so I’m building everything from scratch.
I want to start saving and investing wisely, especially with future goals like marriage in mind. I’m currently unsure where to begin (mutual funds, gold, savings, etc.).
Would appreciate any advice on how to plan, invest, and manage money at this stage.
A good advice is :
- Don’t buy anything on EMI except land
- Buy a land near by your hometown OR the city where do you live. This is the best investment and you will never regret after 10 years
- Invest for your comfort like buying own Scooty/ Car to save more travel time to invest on upskiling time !
- Buy a good health insurance (other than company sponsored) for you and your family members
- Don’t forget to buy a pure LIC term insurance.
Note: Read the point #1 again!
Do SIP, also invest in USA-based companies specifically AI-based, and further you can purchase gold via ETF,
I did the same 7 years back when I joined the corporate world. This helped me a lot
- SIP on 4-5 funds (large, midcap, small, index and ELSS) 30-40k per month
Instead of small cap can also do gold/silver ETF - Make rule to buy atleast 20g gold and 1kg silver per year.
- Fixed deposit with remaining investment money.
- Dont touch PF money
- Dont do NPS instead opt for VPF.
- Avoid buying home/land on huge loans.
- Live frugally even if your salary increases…but don’t compromise on must haves.
Why not NPS?
I had similar pay 3 years back when I was 25. Right now, my NW is ocer 2 Cr at 28. Here's my advice:
Crack a public company that pays you well in RSU. This will automatically take care of your investing and US stock market grows at much higher rate. Don't sell these stocks, too.
Apart from that, invest in MF > Gold > Indian Stock Market > FDs in this order. Imagine a funnel where you dump most in MF and least in FD. That's it.
Here's my monthly breakdown FYR:
base after tax: 3.5L (1 L MF, 20k Gold, 30k Stock Market, rest in FDs, keeping around 80k for monthly expenses)
RSUs after tax: 3L (all stay invested)
EPF Portion: 45K
Total investment per month: appx 5.5L.
I am recently married and are a DINK couple, so no other responsibilities
Forgot an important thing. Keep money to spend and spend it on whatever you like. Don't listen to people saying "Don't by depreciating asset like car" or "Don't waste money on good hotels while teaveling". Do all those things as long as you can afford it. Live a little. It's your money to spend.
Don’t spend money on marriage 😀 that will be major savings 😀
Invest in gold and land
Look
Yr mei inhse 1 sal bada hu.. or inka aadhe se jyda thora hi kamata hu..
Keep it simple.
- Start NPS Tier 1. EPF is not enough. Secure your retirement.
- Emergency fund: 6 months worth of expense in a FD that you can instantly liquidate
- Health Insurance: Your employer provided one is not enough. 1 comprehensive plan to cover you and your elderly parents. It does not matter how much assets you accumulate. 1 major medical emergency and it will be game over if you do not have health insurance
- SIP: Start with passive index funds. Best for starters. Do not start with individual stocks.
- Gold: Best possible exposure to gold without paying making charges and without worrying about safety of storage is Gold ETF. But since you are interested in marriage you can start buying physical gold jewellery.
