Updated: May 21
Personal finance management is one of the most popular topics among millennials yet unaddressed by most of the millennials. Quite often than not the biggest reason is scarcity of money.
No matter what we earn ( 15,000 per month or 2.5 lakhs per month) its never enough to cover the present so securing future financial needs is never an immediate concern. Alternatively, some can say i don't usually save enough make it work for my future. Then comes the reality that people are tied into vicious cycle of always being hand to mouth financially.
Looking into history only handful are ever able to break this cycle. Rest all are bound to earn every months to run lives of the themselves and their loved ones for that particular month. I was chatting with 65 yr old man recently quite learned man with wisdom saying time is a futile thing and humans are not good at tracking it. The joy and struggles of day to day life is so engaging that few days become few months and months become few years and here you are reaching retirement.
There are few instances when a person realizes that i should have done better personal financial planning earlier. This is true for all of the people aged below 60 yrs. Once they reach 60 yrs you say the game of financial management is over for me, now what i have is what i have. Until you reach the retirement you will keep on going through various milestones every time thinking i should have done better in terms of financial management some of those milestones are lighter or severe: I should have saved for down payment of 1st car!, i should have saved money to finance my marriage, i should have saved money for down payment of home loan, i should have saved money for my health issues which becomes more prominent after age 45, i should have saved for my child's higher education and then comes the money to support retirement.
All these milestones could very well addressed in due time no matter what you earn by leveraging the financial instruments that are available in the market and whatever earning bracket you are in. There is a common saying which is applicable here as well:
Its never too late and You will never have enough say its enough....
Its now or never and could be done smoothly without losing night sleep on worrying. A due consideration, planning and some amount of effort with right guidance can sail you through successfully.
There are several ways to address personal finance needs by putting little every month for a long period of time. When i say ways then i mean financial products i.e. Mutual Funds, Life Insurance, Health Insurance, Insurance for your other assets such as cars and home, Pension funds, Stock market and bank deposits. The list is long and some of the products are not very easy to understand.
We shall be running a thread of posts going through each of the mile stones and with what financial instruments those can be achieved effectively will be covered.