1) Save before you spend: Basically, automate withdrawals from your salary account. Use the electronic clearing service (ECS) provided by your bank so that the amount of monthly investment is deducted from your salary as soon as it is credited to your account.
2) Increase your investments with increase in income: It is ok to start investing at a lower amount but as your salary increases you should increase the amount of investment. You should invest at least 25-30 per cent of your salary.
3) Hone up your skills: To increase your salary, you should keep updating your skills regularly. So invest in yourself to be able to move ahead in your career easily.
4) Invest in equities: As you are young, you have time in hand. So you can invest in relatively risky asset class such as equity as they have the potential of delivering inflation-beating-double digit returns over long-term. Debt should be restricted to 20 per cent of your portfolio.
Essential Business Intelligence, Sharp Market Insights, Practical Personal Finance Advice, Daily Fuel, Gold and Silver Prices and Latest Stories — On NDTV Profit.
