look news india
India is the country with the youngest population in the world, where lakhs of youth start their careers every year. But there is also a bitter reality that as soon as they get their first job, most of the youth do not know how to manage their hard-earned money properly. On this serious issue, the country’s famous entrepreneur, bestselling author and well-known YouTuber Ankur Warikoo has shared 10 very valuable and practical financial advice for the youth. If young people at the beginning of their careers adopt these tips in their lives, they can not only avoid financial crunch in future but can also create a huge corpus at an early age. Let us know those 10 big things of Ankur Wariku which can change your entire financial life.
1. First mistake: Not keeping written records of expenses
According to Ankur Wariku, the biggest mistake that youth make in the excitement of getting a new job is that they do not keep any record of their daily and monthly expenses. The result is that despite earning thousands or lakhs of rupees, their bank account becomes empty in the last week of the month. To avoid this trap, make a habit of keeping track of every penny in a mobile app or diary right from the beginning of your career. This will let you know where your money is being wasted.
2. Adopt this secret budgeting formula of 50-30-20
Wariku’s second and most effective advice is about budgeting and investing. As soon as the youth get their salaries, they 50-30-20 rule Should be distributed among.
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50% money: Spend on basic ‘needs’ like house rent, ration and electricity bill.
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30% money: Keep it to fulfill your ‘wants’ like travelling, partying or gadgets.
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20% money: As soon as the month starts, first of all set it aside for investment. It is foolish to wait for a big salary or the right age to start investing.
3. Stay away from the debt trap
Nowadays, personal loans are so easily available through credit cards and mobile apps that youth start spending more than their means and get trapped in the loan trap. They forget that they will have to pay huge interest on it. According to Ankur, youth should never take any other loan in life except for their education (Education Loan) and their own home (Home Loan).
4. Investing while taking loan or jumping into the stock market by taking loan
Nowadays, there is a huge craze for the stock market among the youth, but Wariku has warned that never take a loan or invest with loan money on a high-risk platform like the stock market. Data show that 82% of people who make high-risk trading without thinking lose their money. Apart from this, if you already have any old loan on your head, then repay it completely first, because the interest on your loan will eat into your pocket more than the returns you get from the investment.
5. Misunderstandings regarding insurance and safety of parents
According to Ankur Wariku, never look at life insurance as an investment or return giving scheme. Take this as pure security, so that the family is not in trouble in your absence. Along with this, it is most important to get health insurance for your aging parents. A small illness can wipe out your entire life savings in a moment.
6. Buying a house too quickly due to social pressure
In Indian society, pressure is created to buy a house as soon as one gets a job, which Wariku considers to be the biggest trap. Buying a house is a big decision with long EMIs. Unless you have a very large and permanent source of income, it makes more sense to live in a rented house in the initial years. Only think about home loan once you are completely settled in your career.
7. Avoid ‘shortcuts’ to get rich overnight
As soon as they get their first job, youth often fall into such fake schemes, chit funds or "money double" People fall prey to advertisements that claim to make them rich overnight. You have to accept the bitter truth that money earned through honesty and hard work always grows slowly (through compounding). Shortcuts always make paupers.
8. Uncontrolled investment by watching social media without thinking
Nowadays, looking at social media influencers, people consider the stock market as a gambling or game. Investing your hard-earned money in stocks on the advice of others without deep research and understanding of the market is a complete waste of money. Similarly, instead of taking dozens of schemes in mutual funds, it is enough to invest in a disciplined manner in maximum 3 good SIPs.
9. Dependence only on family for traditional methods of investment
The era of our parents was different, they preferred to invest only in Fixed Deposit (FD) or gold for security. But in today’s era, to beat inflation, youth will have to find new and modern ways of investment. Relying only on old conservative advice from your parents will not help you grow your wealth quickly.
10. Leave the habit of taking small expenses lightly
According to Ankur Wariku, youth often take small daily expenses for granted (like expensive coffee, cigarettes or online food delivery every day) without thinking that what a difference it makes. But at the end of the month these small expenses turn into a big amount. Know your ground reality, assess your expenses correctly and keep upgrading your saving capacity continuously.
