Money Decisions in Your 20s - The Conversation That Matters
A calm morning at S&Co. Rahul walked in with his younger cousin Arjun, who had just started earning.
Rahul: “Sir, yesterday’s discussion helped me a lot. I
wanted Arjun to hear this early in life.”
Srini: “Of course! Arjun, tell me, what does money mean to
you right now?”
Arjun (sheepishly): “I just want to enjoy… I haven’t really thought
long-term.”
Srini (smiling): “And you should enjoy. But with a plan. If you don’t
control money, it will control you someday.”
He slid a notepad towards Arjun.
Srini: “Start with a budget. Know exactly where your
income goes - outings, online shopping, fuel… a budget gives clarity and
control.”
Arjun nodded.
Srini: “Next, build an emergency fund. Life throws
surprises - medical issues, sudden repairs. Save gradually until you have 3 to 6
months of expenses separately. It protects you from panic borrowing.”
Arjun: “That will take time…”
Srini: “Every good habit does. Small steps, consistently.”
He leaned forward.
Srini: “Now - debt. When you get a credit card, use
it wisely. Not as extra income. Pay the full amount every month to avoid traps.
Good credit will help later when you want a car or home.”
Arjun’s interest grew.
Srini: “Your 20s are the best time to invest in yourself
by way of skills, courses, certifications. The more valuable you become, the
faster your income grows.”
Arjun: “So I am the investment?”
Srini: “Your biggest one! And while you’re growing, let your
money grow too. Start investing small amounts early. Compounding rewards those
who start sooner, not those who invest more later.”
Arjun looked thoughtful.
Srini: “Control lifestyle inflation. Understand needs vs.
wants. Living slightly below your means creates freedom, not restriction.”
He continued gently:
Srini: “Learn the basics of taxes, insurance,
and investments. You don’t have to master everything, but awareness
prevents costly mistakes. Ensure you have the right insurance, especially
health, before you start building wealth.”
Arjun made notes quickly.
Srini: “Set financial goals, short and long-term.
Maybe a bike now, a house later. Goals keep you motivated.”
Finally, Srini closed the
conversation:
Srini: “Review your finances regularly. When life changes your
plan should change too. And whenever you feel stuck, ask for guidance instead
of making random choices. Starting early gives you a powerful advantage others
only realize later.”
Arjun stood up with a confident smile.
Arjun: “Thank you sir… feels like I’m getting a head-start
in life.”
Rahul grinned, glad he brought him.
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