Financial tips for youngsters

Today’s world is full of uncertainties and as such staying financially secure and stable becomes extremely important.

As young blood, when we are landed with our first jobs and at the start of professional life, we are quite excited. Becoming financially independent and earning our own bread gives us a sense of power. A power to take quick decisions while spending money.

But as rightly said, “with great power, comes great responsibility.” While enjoying our lives we need to take care of securing our future too. At this stage of life, we are free from many commitments as we are just out of college, unmarried and luckily may not have many household responsibilities.
In this case, we focus on living life to the fullest, getting new experiences, experimenting with new stuff, and exploring the world. No doubt these things are to be done at this age itself but only after taking a part of income for investments. As the 20s are for enjoyment, they are also most appropriate to start investing.

Earlier you start, better it is. Having said that, here are some investment options which you can choose as per your needs.

1) Fixed Deposits (FD)/ Recurring Deposits (RD):
These are the safest investment options involving no risks. However, since the risk factor is less, interest earned is also less.

2) Gold:
Gold again is a safe option but the value depends on various factors. As per the overall trend, the prices are on rise. This option is also optimum for those who invest for the purpose of marriages and looking of making ornaments in the future.

3) Mutual Funds:
This is the most optimum investment option as far as risks and returns are concerned. The rate of returns are high as compared to FD/RD. However, risk is involved as funds are directly invested in capital markets. But risks are lower as compared to direct investment in markets as funds are managed by professional fund managers. Also, there is tax benefit on mutual funds.

4) Equities:
Investment in equities can give high returns however, considerable risk is involved due to volatility of stock markets. You need to acquire proper knowledge as well as an extensive study of markets before investing in equities.
Also, proper guidance from experienced people as a mentor can be beneficial. However, you need to have a risk-bearing capacity before choosing this investment option.

5) Real Estate:
This option is for those who are on the higher-income sides with a large amount of surplus salary to invest. Property values hardly depreciate so we can safely expect positive returns in the future with certainty. Also, rent can form a side income as well for you on a regular monthly basis.
There are also other options like EPF (in which additional amount can be invested voluntarily), PPF, Indian post schemes which provide a good amount of fixed risk-free returns in long term and are safe as they are backed by Government.

Since there are multiple options, thorough research and calculations are needed to be done to choose suitable options. But make sure you invest for your own good. The harsh truth about the world is that nobody respects a financially broke person and thus you need to secure your life. So start thinking about a secured future as anytime is BEST to INVEST.


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