Muzaffarpur Office
Address: Ward No 49, Club Road Mithanpura, Muzaffarpur 842002
Phone: +91 9155391502
Address: Ward No 49, Club Road Mithanpura, Muzaffarpur 842002
Phone: +91 9155391502
A young talent starts his/her professional career with motivation and excitement to fulfill dreams.
Two dreams we all carry, Career growth and financial growth for freedom to execute responsibilities and fulfill desires. Both can be achieved with discipline. Discipline starts with prioritizing things in life. Clear priorities in life reduce the risk of impulse and irrational decisions.
Since I am sharing my learnings on financial aspect of life, thus I am starting further communication on same line.
"Starting your career is the perfect time to turn small savings into big opportunities, building a financial foundation that grows with you."
At very early stage of earning, we should inculcate the habit of Saving and Investment. Because at latter stage due to responsibilities and also due to lack of habit and discipline, it becomes difficult to save for wealthy future and stress-free present.
"Saving isn’t just about money—it’s about giving yourself the freedom to make choices without being limited by financial stress."
Today we are exposed to tons of information on financial planning, many advisors approach us with different products. All of them comes to us with their own perspective not as per our priorities and requirements.
Let’s have a bird eye view on objectives of Saving and Investments and instruments to meet those objectives:
| Investment Objectives | Instruments | Benefit |
|---|---|---|
| Life Risk Management | Health Insurance and Term Life Insurance | Pure Protection |
| Wealth Creation | Mutual Fund, Equity, PMS, AIF, Physical Assets | Wealth Creation |
| Tax Planning | Insurance Plans, Tax Saving Funds, NPS | Money Save |
| Liquidity | Bank Fixed and Recurring Deposits | Money on Click |
| Wealth Preservation | Debt Funds, Govt. Bonds, Fixed Deposits | Safe and Sound |
| Regular Income | Traditional Fixed Deposits, Pension Funds, Residential Houses, Commercial Property | Financial Support |
Every young individual is advised to purchase one Health policy and one Term life policy with his first income. Mutal fund SIP is another important instrument to adopt in early 6 months of started earning. If parents want to gift something to their newly earning child, they should gift him these two, by doing so they are helping in putting the seed of a good habit of saving. Other things depend on various situation in life which can not be advised without discussion and understanding.
Financial requirements in life changes with our life cycle.
| Life-Cycle | Characteristics | Expenditure Pattern |
|---|---|---|
| 25–32 years | Free Sole, Single | Branded clothes, Entertainment, Holidays, Gifts, Bike |
| 32–39 Years | Kiss of Responsibilities, Married | Branded clothes, Entertainment, Holidays, Gifts, Car, Luxury |
| 35–40 years | Responsible Family Man | House, Household items, Kids items added to list |
| 40–45 years | Responsibilities adding-up | Medical expenditure of parents, Study of kids, Multiple EMIs added |
| 45–50 years | Family above self | House renovation, Car change, Self health care added |
| 50–55 years | Health and Kids above all | Higher studies of kids, Spiritual activities added |
| 55–60 years | Helping Hand | Settling down kids and planning for retired life added |
| > 60 years | Support | Support for kids, Medical expenses, Social activities, Spiritual activities, Basic life requirements |
There may some addition or deletion in above mentioned illustration depending up-on family back ground, current financial situation in family but largely pattern remains the same.
The take away is expenditure increases as life progress. Thus it is wise to start saving at the beginning of earning career. Let us see some data on how Indian House hold is saving:
An overview of household savings, investments, physical assets, and borrowing trends in India.
Approximate share in financial asset creation during FY 2024-25:
| Investment Instrument | Share / Value |
|---|---|
| Bank Deposits | ~35.2% (₹12.54 lakh crore) |
| Provident & Pension Funds | ~22% |
| Insurance Funds | ~15% |
| Equities | ~15.1% (Record High) |
| Mutual Funds | ~13.1% of New Financial Assets |
| Small Savings Schemes | ~6–7% |
| Currency Holdings | ~5.9% |
Households continue to invest significantly in physical assets such as real estate and precious metals.
| Asset | FY 2024 Value |
|---|---|
| Physical Assets (Real Estate, Construction, etc.) | ₹38.45 lakh crore |
| Gold & Silver Ornaments | ~₹65,104 crore |
Physical assets still account for a substantial share of total household savings, especially property and gold.
"Do not save what is left after spending, but spend what is left after saving."
You are the best judge and decision maker on how you want to organize yourself financially. You know yourself better than anybody else. Just give yourself some time and talk to yourself.
"Situations in life is reflection of our decisions."