When it comes to finances, Indian millennials are facingunique challenges. This generation is forced to find creative ways to achievegoals such as buying a house, planning a family and saving for retirement. AmidCOVID-19 pandemic, Indians across the country have also realised the impact financial health can have on their well-being.
But are Indian millennial aware of the necessary financialinstruments? When we think of investment the first that comes to mid for mostof us is stock markets and the let alone charts and numbers, the mere wordscares some into not wanting to learn anything about how it really works.
Investments are important because in today¡¯s world, justearning money is not enough. You work hard for the money you earn. But that maynot be adequate for you to lead a comfortable lifestyle or fulfill your dreamsand goals Invest money in your bank account smartly will get you good returnsout of it.
The keys to successful investing are to hold a mix of assets(stocks, bonds, and cash) and to diversify or spread your money acrossdifferent investments by buying the stock of different companies spanningdifferent industries. As is the case for saving for retirement, compoundinginterest will help grow your invested money more quickly, and the sooner you start,the better off you¡¯ll be.
Most people are initially hesitant when starting to invest.?But it is very important to face our fears early so we're financially secure later. Knowledge is an essential asset whenyou're investing. Understanding how and where to invest, doing proper homeworkcan help alleviate investor fear.
You can also reduce anxiety by becoming more familiar withthe economy, various businesses, and government influences on the market. Andof course, thanks to the Internet there¡¯s really no dearth of information. It¡¯sall about wrapping your head around a few concepts and helping your money growfor a more secure future.
Keep in mind, saving and investing are like two sides of acoin. While saving is about setting money aside, investing is about growth, andessentially, the key to financial freedom.
If you are still apprehensive about taking the first fewsteps about starting your journey towards investments, here are a few simpletips that will help you get a kick-start:
Investing, as with anything inlife, benefits from an early start. In investing, slow and steady is good.Planning early and often for retirement will empower you to control every stageof life that could be quite exciting, if done right.
Your investment strategy dependson your saving goals, how much money you need to reach them and your timehorizon. If you¡¯ve never been a saver, you can start by putting away just Rs700 per week. That may not seem like a lot, but over the course of a year itwill grow. Start with small amounts of money, and then increase as you get morecomfortable with the process. It may be a matter of deciding not to go toMcDonald¡¯s or passing on the movies, and putting that money into the cookie instead.Saving for a rainy day has also grown into another major priority after whatall of us have experienced in 2020.
A common investment goal is a retirement. As a general rule ofthumb, you want to aim to invest a total of 10% to 15% of your income each yearfor retirement ¡ª your employer match counts toward that goal. T== For otherinvesting goals, consider time horizon and the amount you need and go on tobreak the amount down into monthly or weekly investments.
Robo-advisors are digital platforms that provide automated, algorithm-driven financial planning services with little to no human supervision. They offer easy account setup, robust goal planning, account services, portfolio management, and security features, attentive customer service, comprehensive education, and low fees.?According to the Financial express, Robo advisory today is gaining momentum considering its unbiasedness and its capability of predictive analysis for effective financial planning ?
Life and?health insurance typically are not supposed to be considered as investments. However, both are very important and must be considered as one of the priority money move to be made before turning hitting your 30s and it's aboslutely essential to understand how they work and ways in which they benefit you.?
In today¡¯s world, a faster pace of life, high-stress levels and lack of physical exercise have given rise to numerous lifestyle diseases. Investing some money in a health insurance cover will help you tide over rising healthcare costs and easily funding any future treatments.?
The COVID-19 pandemic is the best experience realise the importance of having an emergency fund. Probably happened for the first time in our lives wherein the whole economy had stopped. It's a good idea to think of scenarios like job loss, pay cuts and some such and give priority to investments to power through crisis.
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