[mayankk]

My one berate to myself has been not picking up good spending habits. Watch your money, and your spend from when you make 10k,or whatever, at the start of your working life. Aim to have something left over at the end of the month. If you get that habit inculcated, you'll be happier still when you're making 6 figures a month. And of course, what people above have suggested too.

[The Rationalist]

In India, the first thing to do once you turn 18 is to join NPS. Nobody is gonna look after you when you are old, don’t count on your spouse or kids. Start putting 10% of whatever you earn into it. If you aren’t earning anything put a part of your pocket money into it. Every other single investment you make can be liquidated when you have some temptation. NPS will make sure you are going to have that money till 60 and it’s very unlikely that you will throw it away at that age. If you start very early you are very unlikely to starve in your old age. People might think why think about age 60 and all, but the fact is that most Indians will live beyond 60 and in another two decades will have a life expectancy of 75!

Never stop upgrading your skills. There is a story about two men in a forest being chased by a tiger. One guy immediately bent down and started to fasten his shoe laces, the other guy asked what are you doing? The first guy replied “I only have to run faster than you”! Cruel it may sound, but that’s the harsh reality. All of us are replaceable, so make yourself skilled to the level that you are not replaced easily, easier said than done.

Never look for quick gratification, delayed gratification will always be far far better. This would be the most important thing I can tell you. If I had known this when I was younger, I could have been drawing an eight figure salary now!

[chennai-indian]

During induction for new joiners in my org, I usually take a couple of hours of "personal finance" and share a document I have created on PF and Financial independence. Attaching the same and hope it helps!!

[SankalpDesai]

Originally Posted by izzikio_rage

Hi All

I see a ton of very experienced members here who've had successful careers and have found the time and resources for their automobiles and various other hobbies.

Starting this thread for advise that you'd want to share with others on what things have helped you build all this and how people relatively new to their careers should approach this

Great thread, OP. I'm sure you will get some good advice here from fellow T-BHPians.

I have only one thing to say - SAVE a little bit from Day-1.

50/-, 100/-, 500/-, 1,000/-, whatever you can, but save every month, religiously. Put it aside in an investment avenue which would be recommended by folks on the Group. Let it grow over a period of time. Compounding is one of the biggest forces in the world and everyone should benefit from it.

All the best.

[Eddy]

Originally Posted by charanreddy

If you have an educational loan , combine savings and EMIs I.e 70% and start prepaying this loan. The faster you are able to get out of this the better.

While all other points you've mentioned are great, I disagree with this particular suggestion. Loans like Home Loan and Education Loan are :

- Available at relatively low rates to begin with
- Give you tax benefits so the net rate of interest is even lower

These are good loans to have. Financially, it makes little sense to pay them off. Instead, just pay the regular EMIs and invest any surplus into equity index funds and your rate of return in the long run would be higher.

Please note that this is purely a financial view. There are people who attribute mental peace to being debt free and pay off loans as soon as possible. That cannot be measured in $$, so it is an invididual call.

[Comrade]

1. I would say first thing to learn is to avoid taking petty loans for your desires. Be it latest gadget or a bike. Credit card loans and personal loans are biggest culprits in inculcating bad spending habits. If you can't buy that iPhone that you have been eyeing for last 3 months with cash in your bank, dont even think about it. Retailers will entice you with zero-cost EMIs, exchange discount, super-duper sale days etc. But end of the day, buy that device only if you have enough hard-earned cash to part in a single shot.

2. If you inculcate above, then I think you will already be spending within your means, and trying to save as much as possible. These savings should be invested to make your wealth grow by itself (above inflation). Some will suggest stocks, others real-estate or few others Mutual Funds etc etc. You have to discover what clicks for you.

3. Develop an emergency fund for unforeseen emergencies. Hospitalization, out of work etc. This fund should be able to survive you for 3-6 months.

4. Have a seperate saving buckets for long term, medium term and short term. start a retirement fund straight away. Even if you are saving a miniscule amount, it is the habit of saving for a specific target that you should inculcate. Start seperate fund for medium term goals (house or starting a family or travel solo/together after FIRE or starting a biz etc). Also have a kitty for short terms wants (purchase that iphone, travel to Bali with friends etc etc). Spend for each from these buckets only. Some exceptions do apply like purchasing a home or starting a biz where a loan can be taken but those exceptions are far and few, and you will be ready to take the loan when time comes.

5. Try to understand all tax deductions or benefits given by government as much as possible. Don't just rely on HR (if you are employed) to structure everything for you. They would not do anything outside minimum required.

[SnS_12]

Something the younger generation need to keep in mind when they just start off earning. Never buy luxury items with money you don’t have.

[izzikio_rage]

Originally Posted by Samfromindia

7: Consider taking part in the fire movement. You are in the best age group to achieve F.I.R.E

Yup, financial freedom has been something that I've been reading up on as well. Would be amazing to hear from others if they've taken any steps to this end and any advise

Thanks for all the amazing responses everyone, lots to think about

[GTO]

Amazing advice already! Just 4 more thoughts:

- As much as you focus on "saving" money & cutting costs, focus more on "making money" . Over the years, the efforts I've spent on wealth creation + asset management have got me a lot more money than the efforts on spending lesser / cost cutting. In terms of bandwidth, I spend 90% of my financial bandwidth on making money & 10% on ways to curtail expenditure.

Saying this because I know some people who only think of saving, and not as much about creating. Clearly missing the woods for the trees.

- Always keep an eye on the money coming in and the money going out. Don't ever overspend. If I can afford a Toyota Fortuner, I will happily buy a Kia Sonet. That's just me.

- Avoid debt like a plague. I am happily EMI-free for well over a decade.

- Work hard & work good. There is no substitute.

[mtripathi13]

Mod note: Please avoid quoting entire post for replies. Thanks.

Originally Posted by GTO

Amazing advice already! Just 4 more thoughts:
======
- Work hard & work good. There is no substitute.

+1 to all the points. Nothing beats active asset management and it is actually a sure shot way to get rich. You need a lot of discpline for that. But focussing entirely on savings is not ideal.

[Samfromindia]

Originally Posted by izzikio_rage

Yup, financial freedom has been something that I've been reading up on as well. Would be amazing to hear from others if they've taken any steps to this end and any advise

Thanks for all the amazing responses everyone, lots to think about

Not many people are aware of F.I.R.E in India or actively participate like west. However you will find few examples on social media and their success story in India. Another thing is to have multiple income sources, apart from your salary if possible. Explore that area as well. Try to have passive income (like rental) apart from active. (salary)

And finally another very important thing which no one mentioned here I think. One of the most crucial financial decision in your life has got nothing to do with investments. Its about choosing your partner !

https://youtu.be/2XIQ9C7FgXY

A good partner will share & support your financial goals and aspirations. A bad one can drag you & your parents to court, taking as much as 1/3rd of your monthly income as alimony after separation. One of the most important things to watch out for

[Latheesh]

Keep it simple. These points are already covered by others.

1st step
- Track your expenses and calculate your average monthly expense (add a small buffer)
- Term insurance, health insurance, and 3-6 months emergency fund in FD
- Convert annual expenses (like insurance premium) in to monthly RDs - e.g. If you are taking term and health insurance today and annual premium is 36K per month, start an RD of 3K today and take it out next year to pay the premium.

2nd Step
- Opt for VPF in your organization (I opted it very late, but it is the best financial decision I took)
- Invest saved money in index funds (80% in Nifty50, and 20% in NiftyNext50 is fine)

Couple of tips:
Don't go overboard with saving and investment. Enjoy your 20s.
Keep an eye on lifestyle inflation

You will have a fair idea within 2-3 years what to do next.

[hondatoyotafan]

All the seniors have already given all the important pointers but i have only one thing to add ' Learn Investing '.

I used to live a frugal life and save a lot of money but most of it was used to fund any emergencies at home. Invest in some good stocks, MF's and real estate.

[sunilch]

Originally Posted by izzikio_rage

Hi All

I see a ton of very experienced members here who've had successful careers and have found the time and resources for their automobiles and various other hobbies.

Starting this thread for advise that you'd want to share with others on what things have helped you build all this and how people relatively new to their careers should approach this

Not sure of your age and starting income but I guess you are overthinking on 'Savings' part for now.

Relax and enjoy life. Focus on career development, learning and enjoying what life has to offer. All this while following 'Common Sense' in everything that you do.

Life will turn out to be just fine. No amount of saving will make you Adani/Ambani, neither will any amount of risk taking without risk cover/planning.

Moto of life should be to have a peaceful sleep at night, stress-free day at work and a nice meal with family everyday (well almost). Rest all is nothing but FOMO.

[Sran]

Start 3 SIP's of equal small amounts, ranging from Rs 2000 or more whatever you are comfortable with, but not more than 10% of your take home. One Blue chip, one mid cap and third a small cap. Open a second savings bank account in a PSU bank, set auto debit of 20% of take home from salary account to it, SIP will go through this SB account. That's it, that should be your only saving for next 3 years, if you have no family obligation. Next investment and saving cycle starts after 3 years when you are personally a bit wiser. These 3 investment will take of your constant inner monologue about investment. Get a passport if you don't have it.

Then go YOLO for 3 years. Leave no stone unturned, go visit different parts of the country, explore other countries, make friends. Travelling makes us better, it develops a personality. Do not hesitate to travel by any means, be it bus, train, plane. Never ever drink and drive. Buy good clothes, shoes, perfumes and join a gym. Discipline matters. Invest in your personality and career. Do what you enjoy, that's the only thing that matters. Now is not the time to worry about what others may think of you.