Still cannot get your finances in order? We’re here to help
This 15th of August marks the 75th anniversary of our Independence. The Government of India is celebrating "Azaadi ka Amrut Mahotsav" to mark this historic event.
As part of this program, the government intends to hoist 200 million tricolours throughout the country. As part of the 75th Independence Day celebrations, the country has also invited its citizens to hoist tricolours and sing the national anthem together.
It is a great honour to look back on 75 years of achievements. Globally, we rank third in Gross Domestic Product (GDP) and are among the fastest-growing economies. Furthermore, we are the world's largest railway network and a nuclear state.
What about the financial health of the citizens?
Amid all that we have achieved during these 75 years, one thing that still eludes a significant chunk of the Indian population is financial freedom. As per an Economic Times report, only 57.9% of Indians believe they have complete financial freedom.
This problem is more prevalent among youths who are not yet earning or might have just started to earn. The two primary reasons are poor financial awareness and lack of financial planning.
What’s the solution to this?
Now that we know the problem, we will have to derive a solution as well. The youth must take charge of their personal finances by creating a robust financial plan. They should be able to evaluate how much they need to spend and how much they need to save for their future.
And when we talk about saving, we do not mean just keeping a chunk of money in your savings bank account. Here, we talk about “investing” the money saved. By investing your money, you allow it to grow and increase over the years. Keeping your money idle is of no use. But you can make your money earn for you by investing it in the right instruments.
However, for new investors, it might become very difficult and confusing to choose the right kind of instrument for your investment. From fixed deposits to recurring bank accounts to stock markets to mutual funds, there are a plethora of investment avenues available in India. You can choose from these options as per your risk appetite, investment horizon, and investment goals.
Is investing in the market the right thing to do?
Novice investors are often sceptical about investing in market-linked instruments, such as stocks and mutual funds. The reason is obvious; they think that these instruments are highly risky and they could lose all their money.
But let us tell you, investing in the market is one of the best option if you want to achieve long-term financial freedom. When you’re relatively young, i.e., in your 20s or even early 30s, you have fewer responsibilities on your shoulders and a lot of energy. So, this is the time when you can take a bit of risk by overcoming the Fear of Missing Out (FOMO).
And historically, it has been observed that market-linked instruments have always provided the relatively better returns in the long term. Having said that, you must know that it’s very essential to choose the right instrument.
Take the help of a stockbroker
At your age, it might be a difficult task for you to select appropriate investment instruments from the market. So, what you can do is take the help of a stockbroker or investment advisor. These are entities that allow you to invest in the market through their online platforms and also tell you where you should invest your money. However, they charge a nominal fee in lieu of their services.
As you celebrate India's freedom, don't forget to take steps for your financial freedom as well. It all begins with investing wisely. It enables you to be self-reliant and ensures you do not have to depend on others to achieve your objectives.
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