6. Savings and Investments

There are various ways to invest in equity - you can either buy stocks directly or invest via mutual funds. The thumb rule is to subtract your age from 100 and the resultant number should be your exposure to equity. Dani says, “But this financial wisdom might not work for you in certain cases. For instance, if you plan to study in a few years, or have another fixed-non-negotiable personal goal, you will need to build a corpus, and you cannot expose yourself to equity risk. In such a case, investing a bigger portion in a low-risk or no-risk debt instruments works better.”

7. Planning for retirement

At 23, when have just stared your career it’s difficult to think of your retirement but still you start saving to afford a happy aging. Mathpal says, “You should start planning for retirement as soon as you begin working.” even though your employer will open a Employees’ Provident Fund account for you but still you must look for other Public Provident Fund account with a zero-cost, risk-free and tax-free debt instrument. You can also consider the National Pension Scheme (NPS), which will pay you back your money only when you turn 60.