Bangalore: When people first start earning, they have so much pent-up demand for consumption that savings and investments can seem like agony. However, mastering the skills to budget and invest in your twenties will help prevent avoidable debt, reduce impulse purchases and keep aside money for what you want the most. There are lesser responsibilities and a greater penchant for risk at this age. Amit Mukherjee of Tata Capital on behalf of Rediff reports about ten investment tips for young adults.

1. Calculate Your Possible Sources of Income

Start by gathering information of all your possible sources of income. Estimate the expenses you will incur to live the standard of life you choose and also keep a sum of money aside for an emergency fund. The remainder will be your investible income.  Make an inventory of your current debt and the terms of your student loans, what your current taxes are and how much you’d like to shave off.