As the Indian startup ecosystem is evolving, it will need a set of early investors who can be the backbone of the young companies. At a young age the urge of spending money is irresistible and as being independent is what all youngsters wish for. But with the freedom youngsters have to face many challenges and go through work pressure to conquer their fears in order to catch up with their responsibilities.
This is the phase when one takes decisions regarding how, when and where to spend money from the pocket. Just like the house needs a blue print before it is been build, youngsters should also have plan and should start focusing on the investment out of their surplus. If compared to the earlier generation, current generation do the necessary research, are well-informed, and tally all the pros and cons before the investment. The desire to prepare for the future is less than the impulse to live for the present. Youngsters know that nobody has a promised tomorrow, but they also don’t want to end up into their retirement years with limited choices, or none at all.
Earlier working professionals looked only at traditional insurance policies and bank deposits as part of their financial Planning, paying hefty premiums despite being underinsured. But now the dynamics of investments are changing .Even if the youngsters are lazy when it comes to offline investments, yet this whole era of online investments attracts them. However, today with the emergence of private players in the life insurance sector and mutual fund space, youngsters are finding other directions to park their hard-earned money safely.
Many people think that they are avoiding risk by saving money instead of investing it, even though a bank account might help them to keep their money safe but it won’t allow your assets to grow. Money multiplies when you reinvest your profits, or buy more shares with the earnings you make from your investments. Young savers should do financial planning and should evaluate their progress on regular basis, and also update their list of goals according to the financial situation.
When you turn 50, you will realize how saving even small amounts during earlier years could have made your future comfortable and luxurious. There is no harm in living life to the fullest and hoping for a bright future. But by initiating saving at an early age, no matter how small the amounts, it will definitely take off the pressure when you are close to retirement. Meanwhile one will be satisfied with the decisions taken in the past.
While investing early will often help anyone in their 20’s begin building wealth, that doesn’t mean investing is the answer to every problem. Investing and saving are the on-going process it may feel like juggling too many goals at once, not something or someone can simply check off in their to-do-list. If one wants to be financially free in the future, then have to harness this power and put it to work.
‘Save little, Save early’ must always be at the forefront, no matter what kind of lifestyle one lives. By delaying saving and investing decisions one is putting future in risk. Living in the past serves no purpose. Living in the present is great, but they must also remember that they will live tomorrow and for many.
~Kiran Jadhav
Why is investing and saving money important for the youngsters?
