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POSTED BY ON August 30, 2012 1:06 am COMMENTS (3)
Hi,
My name is Vel, based in chennai. I am 23.
I’ve worked for alomost 2 years with ZERO savings. I just realised the mistake of not having an investment and the foolishness of wasting money on mac, tab, etc etc.
Please guide me on the best possible to way to invest my 33000 INR salary every month + 80k cash at bank.
The idea is simple, I don’t want to waste my hard earned money.
I don’t have any commmitments – that said, I don’t mind investing all the salary (33K). I’d love to see my investment grow. Please understand that your reply mean a lot to me.
Please guide this noob fellow!
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I think you should first calm down and stop regreting that you wasted a lot of time and money , The regret always works against you and you more wrong decisions. 2 yrs lost is not that good, but you cant do anything now , so just let it pass 🙂
Now I can see that you need to first invest in your education part a little , For the first 1 yrs I think you can just put your money in recurring deposit . That would get you some sense of how saving money and looking at it grow looks like . It will also be your emergency fund .
You can then chalk out a proper plan for yourself on what all you will do with your money .
Manish
Dear Vel, First of all try to build an emergency fund equal to your 6-9 months’ expenses. it seems you are living with your parents so you can divert full salary for investments. Good. This is the right time to NIKE. Just Do It. 🙂 🙂
In between, please spare some time & read old discussions on this forum to increase your own understanding. I want you to stand on your own legs, hence not spoon feeding you that you should invest in this or that fund/instrument/scheme.
Please do not purchase any Life insurance plan at this juncture.
Thanks
Ashal
Dear Vel,
Following can be a good starting plan –
1) First use option of “Auto Sweep”/”Flex FD” in whatever bank you are using to get higher income on your idle money (80,000 cash). this will also work as your emergency fund. slowly get up to 5-6 months of your monthly expenses in emergency fund. Read this –
http://jagoinvestor.dev.diginnovators.site/2011/03/auto-sweep-bank-account.html
2) Start investing in mutual funds, monthly SIP will be good. At your age you should invest 70% of your invest-able money in equity mutual funds. Some of the good funds are “Franklin India Bluechip”, ICICI bluechip, HDFC top 200 and DSP BR Top 100 etc.
More details can be found at http://www.moneycontrol.com or http://www.valueresearchonline.com
avoid sector specific funds and recently launched fund.
3) Get Term insurance, prefer online term insurance, as they can be purchased a lower premiums
4) Get Health insurance.
5) Open a PPF account (Try to invest to max of 1 lac every year if possible). This will also help you save on tax.
7) Avoid any ULIP /endowment products at any cost.
8) Most importantly, keep reading this forum. Read older entries/question to get more knowledge. Believe it will be life changing.
Warm Regards
Samir