Are you in your 20’s, approaching 20’s or parents of 20 something children?

Are you in your 20’s, approaching 20’s or parents of 20 something children?

What a carefree age! Nothing to worry about!!   No Responsibility!!

This is the time of life one is completely in control of the age and don’t want to get bothered or disturbed about the Future planning, responsibility or Savings.

You are fully enjoying the Money you have. Just started new work or new job and new money. This is story of all 20 something. Isn’t it?

Have you ever thought of the word savings investment tax planning? It comes only when it becomes compulsory when the employer asks to submit for your investment detail. Or suddenly all the friends decides to go on a small tour or some emergency arises and you don’t have anything left in your account. Where to get money from?  Friend? Parents? Or credit card?

Above story is most common amongst the young adults who have just started tasting the freedom of spending money and they feel miserable in this condition.

Young adults are the most influenced people or target crowd for the big brands of clothing, electronic gadgets, holiday packages, entertainment, going to parties etc. It is very natural that without any big responsibilities and so much money power they end up spending their money.

They only realise it later.

How to manage my money? How to invest where to invest? How to save tax?

It starts with following

1. Learn about the money matter : there are many websites which has article about how and where to save money,Talk to your parents how they saved money, take an appointment of Financial Planner, read book or article in newspaper about finance.

2. Control your spending: Because of T.V media and other mediums of advertisement which are mostly focus on young adults and It is natural that when you have money power and freedom you would like to splurge your money on expensive clothing, watch or other gadgets ,bike or car etc . You get lured by the advertisement. One need to think or pause for a minute. Do you really need that thing? Is it really necessary and which will really make your daily life easy? If yes then go ahead if you have that much money, but if you don’t have that much money don’t buy it with credit card or EMI unless you know that you can manage it every month. Check the offers very carefully. You can also control your impulses by carrying less money in pocket when you are just out in a shopping mall. Decide what you want to buy? Which brand? Why? Then do your research compare and then buy that thing. Put all your salary in bank out and whenever require withdraw through ATM that will also curb your spending
3. Start investing monthly so that once your salary is deposited in account your investment installments goes first. Even small amount monthly regularly on compounding can become very big. Small savings monthly now can beat increased savings at later age in terms of growth

4. Start Filling Tax returns: If you don’t have Pancard get one and start filling your returns. It is misconception that if the Tax are paid no need to file the return. IT returns are the standard income proofs accepted globally so if you want to apply for Visa for Job application abroad or applying for loan everywhere it is necessary to have your return filled. Even if the income is small it is necessary and its obligation to file the return, Many believes that small income will not attract the attention of IT authority but the cases are picked randomly for non-filling of IT return and you get scrutiny  and invite unnecessary trouble, Remember we are allowed to save Tax but not allowed to evade Tax.

   5. Risk Management: Every one of us has commercial value starts when we starts earing and it is          increasing year by year till we retire. We carry certain responsibility and Liability. One should        quantify  total responsibility (dependents, loans etc) in to money determine own value. Buy Life  cover Term plan of  that value. At young age getting a life cover is very cheap and affordable as there  are less expenses, It  becomes difficult at later age when we really have lots of responsibilities and  expenses then buying  insurance becomes difficult so buy Life cover when you don’t really need it so  that when you really need  you have it at cheaper rates. Buy Health insurance even if your employer has provided. As when you are    changing the job or in transition period or in sabbatical you have some health insurance coverage in case you fall sick.

6. Have your Life Goals set: It could be buying house or buying car or travelling abroad start investing for it Most important is Retirement Goal, It is quite natural nobody wants to think of retirement at this age. Think about inflation think about compounding from above example  starting early requires very less amount to be invested monthly.

Today’s Rs.25000/month expenses would be Rs. 369,633/ month after 35 year when you will retire at age 60 with inflation around 8% flat.  Prepare yourself for that it is a small amount that can grow big to take care of your future expenses.so you need

All is said and done unless it is implemented. Contact right person and start taking guidance for your healthy financial future.