5 reasons why Financial Life begins at 30 – A wake-up call for all YOUNG investors

POSTED BY nandish@jagoinvestor.com ON June 2, 2014 COMMENTS (34)

This article is to be seen as Financial life –  wake-up call. (Read it and share it with those whom you think needs a wake-up call)

When you are in your 20’s the areas that rules your mind are getting a good placement, partying, buying gadgets, finding right life partner or it can be setting-up your own business. There is very little space for money management (This is true for majority of people, there are always some exceptions).

I can say this because in my early 20’s, personal finance was an alien to me. In a way I was not ready to play role of an investor. I was totally casual and irresponsible with the money I had.

Financial life - wake-up call

Now, when you step into your 30’s the entire scene changes. Some kind of short circuit happens in your head and you suddenly become serious about your hard earned MONEY. You start to gather personal finance knowledge from different sources, look for information, advice on internet and you start to read about personal finance (even if you struggle to understand it)

The Student in YOU is STILL alive

When you were a student I am sure you never started studying on the very first day of your college. Like majority of students you would have waited for the exam dates to get announced and when the exams get extremely close you would have purchased or opened your books (got notes photo copied) and started to prepare for your exams.

The last 7-10 days were the most crucial days for you. In such situation passing or scoring good marks turns into a mission.

Now, this is exactly what most people are still doing in their financial life; they are waiting for the last moment to arrive. They are waiting for the right amount of pressure to get build.

In your 20’s the pressure is least, in your 30’s it starts to build and in your 40’s or 50’s it turns into a do or die situation. Most of you don’t start your investments with the first salary you receive and so I made the statement that the student in you is still alive (If you are an exception I congratulate you)

Top 5 Moments of Transformation that makes you serious about your hard earned money

1. When you experience Ants in Your Pants

In your 30’s when you get face to0 face with your net worth the question that hits your mind is, where did it all go?

You realize that you have been slogging 13 hours a day from last 7-10 years and your net worth is not satisfactory at all. This moment is extremely confronting and it makes you feel uncomfortable but at the same time this is the moment of transformation.

In such moment you become serious about your financial resources and your financial life. Some people start to write budget, some hire a financial planner and some write their situation to bloggers like Nandish and Manish. (Every day we get one such mail from some or the other investor and we start our rescue operation)

Hello Manish,

To start with I am one among very few people who practically is broke I must say.  I took things for granted as most of us do and realized what deep shit I have got into. I am 31 years and believe me I don’t have savings worth my age as well.

Your blog woke me up from that undisturbed sleep that made me feel everything is okay.  Swear to God it is not. Considering the things I have been to in the past. Lived the American way like there is no Tomorrow. Paid the biggest price ever Sir.

Not anymore, after reading you first book on personal finance I made a promise to myself that enough is enough. Not anymore and made couple of promises to myself that I am sure will keep.

Also would like to use your paid services sir, I never found a number that I can call on on the blog sir. Please provide with a number or advice how to start with considering I am in deep mess, I guess I need to recover all those years I’ve spent without savings.

Lost those early years sir and planning to recover them somehow.

Regards,

Stuck investor

Get this clear, it is not about this investor/person because many of you are sailing in the same boat in the area of personal finance

2. When Goals starts to Appear Scary

Most of the investors become serious about their finances when they do some calculations around their goals. Goals like buying house, children education, children marriage and retirement are considered to be the scariest amongst all other financial goals.

getting serious about money

If you want you can test it, do some calculations and then look at your current savings and bank balance. The thought that will strike your mind will be “It’s high time I start doing something about my finances”. This particular moment is again moment of transformation.

In this very moment you start to become serious about wealth creation and you start taking actions in your financial life. By the way in reality no financial goal is scary, if you mismanage money the goals starts to appear scary. (You are one who makes them scary)

3. When you Experience Personal Earth Quake

Imagine a strange situation in which you experience personal earth quake right under your chair (Others are fine only your chair is shaking). We can say this from our experience of working and interacting with investors that such situations make’s a person serious about their financial future.

In your world you think you have made all the right investment choices but on one fine day you land on a blog like jagoinvestor and you discover that you have made all wrong choices and you are a victim of mis selling.

This personal earth quake moment shakes you, wakes you and in a way shatters your financial world. In this very moment you start doing required home work in your financial life, before putting blind signatures you will take out time to read the brochures of different financial products. From this very day you stop trusting all the uncles and relatives who supplied you free dose of advice.

4. Real life experiences causes transformation

Reality is the best teacher you will ever encounter in your life. We have come across numerous cases which brought drastic change into people’s overall attitude towards money management. One of our clients lost his elder brother at a very young age and this event made him very serious about life protection and how important it is to keep things organized.

A lot of people after one of their family member gets hospitalized they become serious about health cover. My invitation is do not wait to take actions in your financial life. You don’t have to wait for some accident to take place before you start wearing helmet.

Look around you and learn from some real life experiences as they are of the biggest source of transformation you will ever find.

5. Breakdown in Career

It is said that “Man proposes and god disposes”. In my book “11 principles to achieve financial freedom” we have a chapter called “Your plan vs. God’s plan for you”. It is a fun and insightful chapter that helps you to think beyond making plans in your mind.

We have coached many investors who had some kind of career breakdown and we could see how it made them extremely serious about their finances. Somewhere you start to value money most in your bad times.

Most of people in their 30’s take major career decisions, they are clear that their idea is going to get them all the success that they are looking for. I am not saying doing business is risky or one should not experiment. All I am saying is such situation leads to personal transformation into an investor’s financial journey.

Some final wake-up words to engage with

Do not wait for a kick on your ass or for some unpleasant situation to occur before you get serious about money management. We wrote this article because majority of our clients for financial planning and financial coaching are in their 30’s. Something happens when you step into your 30’s and you need to acknowledge the moment or event that got you serious as an investor.

Whatever is your age right now just start taking actions in your financial life. Also, in the comments section share the moment that made you serious as an investor and what would you say to those who are yet not serious when it comes to money management?

This article is contributed by Nandish Desai. Let us know your thoughts about this article.

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34 replies on this article “5 reasons why Financial Life begins at 30 – A wake-up call for all YOUNG investors”

  1. Alok says:

    Hi Manish!
    This is Alok.
    You have depicted the exact mindset of most of the Indian youngsters.
    I also went through some bad experience – a friend of mine who duped me for some 3 lacs rupees through certain scam. I blindly kept faith in him. That is when I started going through the books available on financial planning, wealth creation. And few websites like Stable Investor, Jago Investor and Safal Niveshak. You people are doing a very good job of educating people in this subject.
    I really appreciate your efforts.
    Keep up the good work.
    All the best.

    Regards,
    Alok.

  2. ggpatel says:

    Yes! its very true…

  3. Amit Ranasubhe says:

    Very good article Manish.. Please write some articles on Investing in Real Estate.

    1. Hi Amit

      What kind of article are you looking at ?

  4. AmitNafde says:

    Really an Eye opener. Made me think about all this.

  5. Pratik says:

    Just one word Manish .. Superb !!
    An eye opener for everybody .. 🙂 Would love to see all your articles in a book format.

  6. Vijay says:

    I completly agree to above discussion as right now I am facing the same thing. I am a 26 year old guy from Kolkata. Lost my dad in 2012 just 2 years back and that time I was fresh MBA pass out and was not that serious with money matters as had one of the safest shelter of Dad that a child enjoys not only in terms of Financial needs but emotional as well. But since that tragedy my life had changed in one night and I became the sole bread earner of my family. I congratulate and appreciate the efforts made by both of you. Sadly my dad didnt had good term or in any kind of life insurance as like many he took death as no reality. Now from past 3 years I am working and toling hard to provide good facilities to my younger sister and also plan for hers and mine marriage both single handly. To start with I have very very less savings to fulfill the basic needs. We didnt had our own house even. I this two years I have taken a house loan to complete that requirement. I have bought a good term insurance for myself along with a mixyure of decent endoment plan. Have purchased good mediclaim policy for me, my sis and my Mom which is a basic requiremnt. After let go of my home loan EMI I am investing full limit of PPF from past two years as my retirement planning. But this is from my practical expereicene that I am doing and not sure if I am in good direction, I want to acheive a target of corpus amount in 10 years before I am 40. Need your help, I am ready for your paid service and I hope will get correct and customised solutions to problems I am facing.

    1. Hi Vijay

      Thanks for sharing your story . It has a lot motivation and learnings for others ..

      I think you should come for your program called Design your financial life happening soon . Read more here – http://forms.aweber.com/form/22/730974722.htm

  7. Kashyap says:

    My friend suggested that I visit your website and I bumped into this article. It’s really a great read! This might sound like I am bragging, but I am proud that I started investing one year back, at the age of 23!

    75% of my savings are in equity, as I truly believe that this is the time to take risks! If not now, when!! They say, 100 minus your age should be the amount invested in equity and I try to follow that.

    Your website is really interesting and I look forward to reading more here.

    Thanks

    1. thats great Kashyap ! .. keep it up !

  8. Utsav says:

    Thanks for all the great work you guys are doing.

    I Got my wakeup call 1 year back when i was introduced to your Blog and watched the recommended “One Idiot” short film. Though not majorly but have took a Mediclain, term Plan n Started a regular SIP in Equity MF.

    Since then i am at an ease that at least i started and have promoted everyone in my circle to invest and be secure as well.

    Thank you once again 🙂

    1. Thanks for sharing that ! Utsav ..

  9. Chris says:

    I’ve been following your blog and subramoney from a long time. The saving habit if induced early in a persons life can really make life simpler and easier.

    I read this article on subramoney abou creating wealth and would like to post it here. Hope you do not mind Manish

    http://www.subramoney.com/2014/06/the-best-way-to-create-wealth/

    1. Thanks for the link Chris 🙂

  10. Amit says:

    So true is this blog. My Father inculcated habit of investing very early in my life and it has paid of so well. I have many people in my office who come and tell me that they have nothing left after end of the month. It is always a good idea to save and invest as it gives you feeling of empowerment and security.

    1. Thanks for sharing that Amit ! 🙂 .. very inspiring !

  11. sangita says:

    I have invested most of my earning…
    It left little to enjoy my life (gadgets, outings) until recently… Many peopele say that if i were to die suddenly i will regret not splurging money on myself and I would say I ll be happy at that minute because i left nothing for my child to be at anyone’s mercy

    1. nandish says:

      Awesome Sangita. You value money, respect money and are really wise with money. You are an inspiration to many women investors.

      Nandish

    2. Yea .. You should be happy with your decision 🙂

  12. Sreedhar says:

    I lost of Father at a very young age and he was the only bread winner in my family.This 1 incident changed my perpective towards Money and its importance. As said, do not wait for bad things to happen or thinking it will never happen to me, Plan your investment and action on it…Most important –Take good life insurance and health insurance coverage atleast by the time U enter in to ur 30s.

    1. nandish says:

      Sreedhar you faced tough situations in life, hats off to you. Every word that you have written comes from your real life experience and I think everyone should take care of their basics

  13. dinesh jain says:

    A wake up call given in an excellent fashion. have shared this with my clients just now.

    1. nandish says:

      Thats great dinesh. Thanks for sharing and for making a difference

  14. Senthil T says:

    A week back I was googling about a financial product and stumbled upon JI site….the blog and more importantly the comments for them were real informative…as described in this blog, I am now 31 and for the first time I have taken financial planning seriously….Based on the formula’s shared by Hemanth for one of my question, had helped me to get rid of non-performing ULIP products that I was holding on (might have blindly invested them for future years) and I was able to help one of my colleague using the formula and show how his fund was performing….to his eye, I appeared more financially knowledgeable and this have given me encouragement to learn more financially and help in any way I can…
    Thanks Manish / Nandish and JI team…..just like you are doing your bit to society, it inspires us to give back little as well 

    1. Thanks Senthil

      You should read some of our books to go to next level .. https://www.jagoinvestor.com/book

      Manish

  15. ramakrishnaraju says:

    sir, thanks for your article. I need an advise for present day children who starts their career immediate after campus selection. They get selected to good companies and work for a year or so and immediately resign. they will not go in for any alternative career instead feed on the savings they made during a year or so in pursuit of photography, cycling to far east places, spend on novels, cinemas, good foodie restaurants, clubs, resorts etc . Parents become mute witness their activities and have no advise on financial implications and years they waste as youngsters postponing marriage days, career streams, learning streams etc. They do not plan financial goal that is available for them on hand by purchase or investment at appropriate time. Covering these finer aspects and insights into individuals I would suggest you bring out an article which will be eye opener to youngsters.

    1. Anjan says:

      “…instead feed on the savings they made during a year or so in pursuit of photography, cycling to far east places, spend on novels, cinemas, good foodie restaurants, clubs, resorts etc.”

      “…and years they waste as youngsters postponing marriage days, career streams, learning streams etc. ”

      I don’t agree with this narrow minded view on how everyone should lead their lives. Some people love to live their life to the fullest while they are still young and that’s why they leave jobs and go on adventure trips, cycling trips, photography expeditions and all that. The time to enjoy is while you are still in your 20s and early 30s and unfortunately being employed (especially in private sector) often does not allow that luxury.

      We are all becoming zombies by trying to fit into a predefined mold set by society. Struggle for good grade all our childhood and as soon as college ends, we are expected to get a good job and slog like slaves all day so that we can be married off 3 years later. Then comes the expectation of having kids (even though this country is sickly overpopulated) and then our whole life goes in trying provide for our kids and wife. Keep investing like crazy from the very beginning because planning for retirement must apparently also start as early as 25. This is a very mundane way of living life and before you know it your life is over.

      I actually applaud youngsters who are able to break away from this mold early on in life and at the same time become serious later on to plan for those golden years. I personally know a few guys like that and they are an inspiration to me. Their final corpus might not reach a crore but that’s not everything in life is it?

      1. Agree with you Anjan . I consider myself as one of those who have broke all the parameters set by society 🙂

  16. Priyankara says:

    This article makes so much sense. Making money is easy, its keeping it that’s diffcult. Its important to look after your money- only then will it grow. With just a little bit of mangement (on a reasonable salary) it took me only about 3 years to save enough to make the down payment for my home loan. I didn’t have to make any huge scarifices either, and I still have some savings left over for emergencies.

    1. Great sharing .. a lot of things to learn from your simple comment for today’s youth !

  17. Jagrut Khairnar says:

    Yes, its a ‘wake up’ article for many of readers like me..
    Very recently I thought of buying one term plan and mediclaim policy and two SIP for my kid’s future and…..!!! but my salary wont allow me to do so many things..
    I would be honor if you can share your contact details and your service charges so I can do my financial planning in better way.

    Thank you

    1. Hi Jagrut

      You can visit https://www.jagoinvestor.com/services . It has all details !

    2. Nandish says:

      Jagrut Manish has already given you link to our services page. If you are fully committed you can drop a mail to me on nandish@jagoinvestor.com and I will help you to move forward in your financial life with minimal investment.

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