{"id":10635,"date":"2022-03-30T07:24:21","date_gmt":"2022-03-30T07:24:21","guid":{"rendered":"https:\/\/kuvera.in\/blog\/?p=10635"},"modified":"2022-04-06T04:01:59","modified_gmt":"2022-04-06T04:01:59","slug":"8-things-about-personal-finance-youd-tell-your-younger-self","status":"publish","type":"post","link":"https:\/\/kuvera.in\/blog\/8-things-about-personal-finance-youd-tell-your-younger-self\/","title":{"rendered":"8 things about personal finance you\u2019d tell your younger self"},"content":{"rendered":"<div>\n<p><span style=\"font-weight: 400;\">I thought I had my personal finances figured out, but then I got a letter from my future self.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Hey,<\/span><\/p>\n<p><span style=\"font-weight: 400;\">It\u2019s great that you&#8217;re now making a living and ticking things off your bucket list. I hope headaches and back pains haven\u2019t entered your life yet, because they are the real party pooper. How are the finances looking?<\/span><\/p>\n<p><i><span style=\"font-weight: 400;\">\u201cPaise jhaad pe ugate hain kya!\u201d<\/span><\/i><span style=\"font-weight: 400;\"> we have heard it enough growing up, still do. You see the generation earlier believed in hoarding money as security, but our generation is preparing for a bigger picture &#8211; wealth creation.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">We actually have the means to make our money grow, the only rule is to start early. Here\u2019s <\/span><a href=\"https:\/\/kuvera.in\/blog\/001-start-investing-today-a-ka-the-power-of-compounding\/\"><span style=\"font-weight: 400;\">a great example <\/span><\/a><span style=\"font-weight: 400;\">of how compounding works and why you should start investing sooner. <\/span><\/p>\n<p>&nbsp;<\/p>\n<p><b>8 things to keep in mind while making a portfolio as a young earner:<\/b><\/p>\n<p>&nbsp;<\/p>\n<p><b>1. 50-30-20 rule for Budgeting<\/b><\/p>\n<p><span style=\"font-weight: 400;\">Budgeting allows you to stay aligned with your investment goals.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Divide your after-tax income into:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Essentials (50%)<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Wants (30%)<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Savings (20%)<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Track your expenses to evaluate your expenditure habits. You can revise the portions to suit your lifestyle. E.g.,if you are staying with parents, your essentials might not have to take up such a large portion of your budget.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><b>2. Start with Goal-setting<\/b><\/p>\n<p><span style=\"font-weight: 400;\">Even the <\/span><i><span style=\"font-weight: 400;\">never-happening<\/span><\/i><span style=\"font-weight: 400;\"> Goa trip needs some planning, so does your investments. Long-term goals, such as travel, early retirement, a dream home or car, and so on, must be defined so your portfolio aligns with your priorities and risk-appetite.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Check out <\/span><a href=\"https:\/\/play.google.com\/store\/apps\/details?id=com.gooogle.android.kuvera.app&amp;hl=en_IN&amp;gl=US\"><span style=\"font-weight: 400;\">Kuvera<\/span><\/a><span style=\"font-weight: 400;\"> for AI powered goal-setting and take a systematic approach to investments.\u00a0<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><b>3. Automate your Finances<\/b><\/p>\n<p><span style=\"font-weight: 400;\">Once you have defined your income, expenditure, and investment portions, it\u2019s time to automate the process.\u00a0<\/span><\/p>\n<ol>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Have two separate accounts- Expense Account &amp; Savings Account<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Have a cash cushion for emergencies\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Set up payments for bills &amp; expenses\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Redirect a portion of your salary to SIPs\u00a0<\/span><\/li>\n<\/ol>\n<p><span style=\"font-weight: 400;\">Remember, it is the discipline of investing itself, not the amount, which is the real wealth instrument. Do invest consistently, even if it&#8217;s just \u20b9500 each month.\u00a0\u00a0\u00a0\u00a0\u00a0<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><b>4. Watch out for commission fees<\/b><\/p>\n<p><span style=\"font-weight: 400;\">Avoid paying commission fees whenever possible. Commission is like a parasite, it compounds with your capital and eats up a significant portion at the time of withdrawal.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">You can save up to 1.5% commission on certain regular mutual funds by shifting to direct mutual funds, <\/span><a href=\"https:\/\/kuvera.in\/blog\/direct-plans-better\/\"><span style=\"font-weight: 400;\">helping you gain<\/span><\/a><span style=\"font-weight: 400;\"> over 30% over a 20-year investment horizon.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><b>5. Make a diverse Portfolio<\/b><\/p>\n<p><span style=\"font-weight: 400;\">Diversifying your portfolio is basically investing your money into different asset classes and securities to reduce risk. Eg. when the market risk is specific to a company or market segment, it can bring down your entire portfolio. So essentially, diversification is about striking a perfect balance between high and low risk instruments. That&#8217;s where FDs, index funds, PPF, gold, government bonds, and tax saving options like ELSS come into play. Explore<\/span><span style=\"font-weight: 400;\"> more such options on <\/span><a href=\"https:\/\/play.google.com\/store\/apps\/details?id=com.gooogle.android.kuvera.app&amp;hl=en_IN&amp;gl=US\"><span style=\"font-weight: 400;\">Kuvera<\/span><\/a><span style=\"font-weight: 400;\">.\u00a0\u00a0<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><b>6. First Learn and then Earn<\/b><\/p>\n<blockquote><p><span style=\"font-weight: 400;\">\u201cI believe that through knowledge and discipline, financial peace is possible for all of us.\u201d<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u2013 <strong>Dave Ramsey, <\/strong>personal finance guru, author &amp; entrepreneur.\u00a0<\/span><\/p><\/blockquote>\n<p><span style=\"font-weight: 400;\">If you want to be a successful investor, you should understand how investment instruments work. Learning key concepts such as risk management, budgeting, inflation and dealing with market volatility could be extremely beneficial.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">They help you make informed decisions, such as selecting how and when to save and spend, evaluating costs before making a large purchase, and planning for retirement or other long-term goals.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><b>7. Keep an Emergency Fund<\/b><\/p>\n<p><span style=\"font-weight: 400;\">Not all challenges knock on your door before entering your life, so have an emergency fund equivalent to at least 6 months of your expenses.You can keep them in FDs, RDs, which are some of the safest and easiest ways to liquidate investments.\u00a0\u00a0<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><b>8. Never forget \u201cHealth is wealth\u201d\u00a0<\/b><\/p>\n<p><span style=\"font-weight: 400;\">According to the <\/span><a href=\"https:\/\/main.mohfw.gov.in\/sites\/default\/files\/NHA_Estimates_Report_2015-16_0.pdf\"><span style=\"font-weight: 400;\">report<\/span><\/a><span style=\"font-weight: 400;\"> by National Health Accounts (NHA), Indians spend twice as much on healthcare out of their own pockets as the Central and State governments do.<\/span><\/p>\n<blockquote><p><span style=\"font-weight: 400;\">In FY 2016, Indian households spent <\/span><span style=\"font-weight: 400;\">\u20b9<\/span><span style=\"font-weight: 400;\">3,20,211 crore on their own, out of a total healthcare spend of <\/span><span style=\"font-weight: 400;\">\u20b9<\/span><span style=\"font-weight: 400;\">5,28,484 crore in India. This amounts to approximately 60.6 percent of total health-care spending.<\/span><\/p><\/blockquote>\n<p><span style=\"font-weight: 400;\">As our expenditure on health-care services rises, so does the need for a good health-insurance policy. Buying a health insurance policy from a young age not only gives you more coverage at a lower cost, but it also allows you to organize your finances better.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Ensure that you are not being sold a policy in the name of \u201cgreat returns,\u201d but purchasing one that promises great health coverage. Having comprehensive medical coverage for you and your family will give you the freedom to focus on long term investments.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p>Interested in how we think about the markets?<\/p>\n<\/div>\n<p>Read more: <a href=\"https:\/\/kuvera.in\/blog\/category\/zen-and-the-art-of-investing\/\" target=\"_blank\" rel=\"noopener noreferrer\"><strong>Zen And The Art Of Investing<\/strong><\/a><\/p>\n<p>Watch\/hear on YouTube:<\/p>\n<p><iframe loading=\"lazy\" title=\"Kuvera Insights\" width=\"640\" height=\"360\" src=\"https:\/\/www.youtube.com\/embed\/videoseries?list=PLDSzQdT9nLmCysU31bg4Ngh7WY2p3UiiI\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture\" allowfullscreen><\/iframe><\/p>\n<p>Start investing through a platform that brings goal planning and investing to your fingertips. Visit <a href=\"https:\/\/www.kuvera.in\/\"><strong>kuvera.in<\/strong><\/a> to discover <a href=\"https:\/\/kuvera.in\/blog\/direct-plans-better\/\"><strong>Direct Plans<\/strong><\/a> and <strong><a href=\"https:\/\/kuvera.in\/explore\/fixed-deposit\/c\/all\">Fixed Deposits<\/a><\/strong> and <a href=\"https:\/\/kuvera.in\/user\/login\"><strong>start investing today.<\/strong><\/a><\/p>\n<p>#MutualFundSahiHai #KuveraSabseSahiHai! #PersonalFinance<\/p>\n","protected":false},"excerpt":{"rendered":"<p>I thought I had my personal finances figured out, but then I got a letter from my future self.\u00a0 Hey, It\u2019s great that you&#8217;re now making a living and ticking things off your bucket list. I hope headaches and back pains haven\u2019t entered your life yet, because they are the real party pooper. How are [&#8230;]<\/p>\n<p><a class=\"btn btn-secondary understrap-read-more-link\" href=\"https:\/\/kuvera.in\/blog\/8-things-about-personal-finance-youd-tell-your-younger-self\/\">Read More&#8230;<\/a><\/p>\n","protected":false},"author":11,"featured_media":10639,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mi_skip_tracking":false},"categories":[99,593,594],"tags":[561,595,403,591,89,422,221,329,361,222,17,304],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v20.6 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Starting your Investment journey- 8 things to remember | Kuvera<\/title>\n<meta name=\"description\" content=\"Just got your first salary? Here are 8 essential things about personal finance you&#039;d want to hear from your future self.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/kuvera.in\/blog\/8-things-about-personal-finance-youd-tell-your-younger-self\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Starting your Investment journey- 8 things to remember | Kuvera\" \/>\n<meta property=\"og:description\" content=\"Just got your first salary? Here are 8 essential things about personal finance you&#039;d want to hear from your future self.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/kuvera.in\/blog\/8-things-about-personal-finance-youd-tell-your-younger-self\/\" \/>\n<meta property=\"og:site_name\" content=\"Kuvera\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/kuvera.in\" \/>\n<meta property=\"article:published_time\" content=\"2022-03-30T07:24:21+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2022-04-06T04:01:59+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/kuvera.in\/blog\/wp-content\/uploads\/2022\/03\/markus-winkler-LNzuOK1GxRU-unsplash-min.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"3999\" \/>\n\t<meta property=\"og:image:height\" content=\"2666\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Kuvera\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@Kuvera_In\" \/>\n<meta name=\"twitter:site\" content=\"@Kuvera_In\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Kuvera\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"4 minutes\" \/>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Starting your Investment journey- 8 things to remember | Kuvera","description":"Just got your first salary? Here are 8 essential things about personal finance you'd want to hear from your future self.","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/kuvera.in\/blog\/8-things-about-personal-finance-youd-tell-your-younger-self\/","og_locale":"en_US","og_type":"article","og_title":"Starting your Investment journey- 8 things to remember | Kuvera","og_description":"Just got your first salary? Here are 8 essential things about personal finance you'd want to hear from your future self.","og_url":"https:\/\/kuvera.in\/blog\/8-things-about-personal-finance-youd-tell-your-younger-self\/","og_site_name":"Kuvera","article_publisher":"https:\/\/www.facebook.com\/kuvera.in","article_published_time":"2022-03-30T07:24:21+00:00","article_modified_time":"2022-04-06T04:01:59+00:00","og_image":[{"width":3999,"height":2666,"url":"https:\/\/kuvera.in\/blog\/wp-content\/uploads\/2022\/03\/markus-winkler-LNzuOK1GxRU-unsplash-min.jpg","type":"image\/jpeg"}],"author":"Kuvera","twitter_card":"summary_large_image","twitter_creator":"@Kuvera_In","twitter_site":"@Kuvera_In","twitter_misc":{"Written by":"Kuvera","Est. reading time":"4 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/kuvera.in\/blog\/8-things-about-personal-finance-youd-tell-your-younger-self\/#article","isPartOf":{"@id":"https:\/\/kuvera.in\/blog\/8-things-about-personal-finance-youd-tell-your-younger-self\/"},"author":{"name":"Kuvera","@id":"https:\/\/kuvera.in\/blog\/#\/schema\/person\/6b774e7d3516942b9e0242c93d7cb307"},"headline":"8 things about personal finance you\u2019d tell your younger self","datePublished":"2022-03-30T07:24:21+00:00","dateModified":"2022-04-06T04:01:59+00:00","mainEntityOfPage":{"@id":"https:\/\/kuvera.in\/blog\/8-things-about-personal-finance-youd-tell-your-younger-self\/"},"wordCount":851,"commentCount":0,"publisher":{"@id":"https:\/\/kuvera.in\/blog\/#organization"},"keywords":["bank fd","budgeting","emergency fund","epf","Goal Based Planning","health insurance","insurance","MF","portfolio","ppf","SIP","Tax Saving"],"articleSection":["Investing 101","personal finance","Young earners"],"inLanguage":"en-US","potentialAction":[{"@type":"CommentAction","name":"Comment","target":["https:\/\/kuvera.in\/blog\/8-things-about-personal-finance-youd-tell-your-younger-self\/#respond"]}]},{"@type":"WebPage","@id":"https:\/\/kuvera.in\/blog\/8-things-about-personal-finance-youd-tell-your-younger-self\/","url":"https:\/\/kuvera.in\/blog\/8-things-about-personal-finance-youd-tell-your-younger-self\/","name":"Starting your Investment journey- 8 things to remember | Kuvera","isPartOf":{"@id":"https:\/\/kuvera.in\/blog\/#website"},"datePublished":"2022-03-30T07:24:21+00:00","dateModified":"2022-04-06T04:01:59+00:00","description":"Just got your first salary? Here are 8 essential things about personal finance you'd want to hear from your future self.","breadcrumb":{"@id":"https:\/\/kuvera.in\/blog\/8-things-about-personal-finance-youd-tell-your-younger-self\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/kuvera.in\/blog\/8-things-about-personal-finance-youd-tell-your-younger-self\/"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/kuvera.in\/blog\/8-things-about-personal-finance-youd-tell-your-younger-self\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/kuvera.in\/blog\/"},{"@type":"ListItem","position":2,"name":"8 things about personal finance you\u2019d tell your younger self"}]},{"@type":"WebSite","@id":"https:\/\/kuvera.in\/blog\/#website","url":"https:\/\/kuvera.in\/blog\/","name":"Kuvera","description":"Wealth Management, Simplified","publisher":{"@id":"https:\/\/kuvera.in\/blog\/#organization"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/kuvera.in\/blog\/?s={search_term_string}"},"query-input":"required name=search_term_string"}],"inLanguage":"en-US"},{"@type":"Organization","@id":"https:\/\/kuvera.in\/blog\/#organization","name":"Kuvera","url":"https:\/\/kuvera.in\/blog\/","logo":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/kuvera.in\/blog\/#\/schema\/logo\/image\/","url":"https:\/\/kuvera.in\/blog\/wp-content\/uploads\/2022\/07\/cropped-cropped-kuvera-logo-dark-3.png","contentUrl":"https:\/\/kuvera.in\/blog\/wp-content\/uploads\/2022\/07\/cropped-cropped-kuvera-logo-dark-3.png","width":83,"height":13,"caption":"Kuvera"},"image":{"@id":"https:\/\/kuvera.in\/blog\/#\/schema\/logo\/image\/"},"sameAs":["https:\/\/www.facebook.com\/kuvera.in","https:\/\/twitter.com\/Kuvera_In","https:\/\/www.instagram.com\/kuvera.in","https:\/\/www.linkedin.com\/company-beta\/10456535\/"]},{"@type":"Person","@id":"https:\/\/kuvera.in\/blog\/#\/schema\/person\/6b774e7d3516942b9e0242c93d7cb307","name":"Kuvera","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/kuvera.in\/blog\/#\/schema\/person\/image\/","url":"https:\/\/kuvera.in\/blog\/wp-content\/uploads\/2019\/07\/social-media-logo-02-alt-v3-150x150.jpg","contentUrl":"https:\/\/kuvera.in\/blog\/wp-content\/uploads\/2019\/07\/social-media-logo-02-alt-v3-150x150.jpg","caption":"Kuvera"},"description":"Kuvera is India's first free Direct Mutual Fund investing platform. We bring you goal-based investing and innovative features like Tax Harvesting, TradeSmart, Family Account and more!","sameAs":["http:\/\/kuvera.in"],"url":"https:\/\/kuvera.in\/blog\/author\/kuvera-research\/"}]}},"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/kuvera.in\/blog\/wp-json\/wp\/v2\/posts\/10635"}],"collection":[{"href":"https:\/\/kuvera.in\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/kuvera.in\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/kuvera.in\/blog\/wp-json\/wp\/v2\/users\/11"}],"replies":[{"embeddable":true,"href":"https:\/\/kuvera.in\/blog\/wp-json\/wp\/v2\/comments?post=10635"}],"version-history":[{"count":4,"href":"https:\/\/kuvera.in\/blog\/wp-json\/wp\/v2\/posts\/10635\/revisions"}],"predecessor-version":[{"id":10695,"href":"https:\/\/kuvera.in\/blog\/wp-json\/wp\/v2\/posts\/10635\/revisions\/10695"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/kuvera.in\/blog\/wp-json\/wp\/v2\/media\/10639"}],"wp:attachment":[{"href":"https:\/\/kuvera.in\/blog\/wp-json\/wp\/v2\/media?parent=10635"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/kuvera.in\/blog\/wp-json\/wp\/v2\/categories?post=10635"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/kuvera.in\/blog\/wp-json\/wp\/v2\/tags?post=10635"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}