Start Today! Here are some investment mantras for all millennials starting career

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 A recent LinkedIn survey revealed harrowing details about the present job crisis faced by Indian millennials and GenZ (aged between 18-24 years). Out of every 10 job applications, almost 7 were rejected, delayed, or canceled during the second wave of the pandemic. Slower recruitment processes, lack of job opportunities, or the current bleak economic scenario- all of it makes for a potent combination to fuel urban unemployment as well, which stands at nearly 8 percent, per data by CMIE (Center for Monitoring Indian Economy). 

Not much seems to have changed in this regard since the last survey conducted by the job networking platform almost a month ago, which highlighted that nearly 30 percent of Gen Z and 26 percent of millennials were severely affected by the economically adverse impacts of the prolonged pandemic. In fact, it also noted that the decline was almost 2.5 times more in young workers as compared to their older counterparts. 

There’s no denying that the last two years have been a rough ride, but if you’ve landed a job or are just starting out in your career, here are a few ways as to how you can manage to keep your financial health great and have a healthy start to both- your financial and professional life! 

Don't wait for the right time to start investing! Heed to Sanjeev Dawar, personal finance advisor, when he says “Begin your personal finance journey right from the first paycheque. While the retirement age remains unchanged, life expectancy has gone up. We need a bigger corpus to support us for a longer duration. Another thing to remember is that many of us now wish to retire at 50 to pursue other interests. Hence, plan accordingly.” 

Consider this. If you start investing Rs 4,500 per month at the age of 30, you will have a corpus of Rs 1 crore at the age of 60, if returns are assumed to be at 10 percent. Hence, your total invested amount will come to Rs 16.2 lakhs. 

Now, if you start investing 10 years later, at the age of 40, you’ll have to invest Rs 13,000 per month to reach the same amount. A gap of 10 years can double your investable amount.

According to Nema Chahhya Buch, a financial planner, “investing is a lot about the power of compounding and enhancing the time value of money. Hence starting early is very important”. It's preferred, too, because when you’re young, you can take on more risks and automatically, have time in your favor, which means you’re capable of investing in high-risk asset classes like equity, mutual funds, and more. 

Wild, free, and adventurous-while that bodes well with life, our money demands some management. It's easy to get swayed away by endless shopping sprees on your favorite things and trips, but, as Nema Chahhya Buch puts it, “Understand the difference between needs, wants and desires''. Prepare a budget, timeline, and value for each goal, and most importantly, stick to it. This will help you identify various asset classes like gold, property, equity, and more to create a robust portfolio. 

Per Dawar, “Before making any investment, ensure that life & health insurance cover is in place. The amount should be increased as liabilities increase. Do not buy products like ULIPs (Unit Linked Insurance Plans), which combine insurance & investment. A life insurance cover purchased at a younger age gives an advantage of a lower premium, which remains constant throughout the policy term.” 

And not just safety for life, safeguarding against the unprecedented calamities of life is just as important. Build an emergency corpus for essential expenses of up to 6-12 months, so you don't have to rush to liquidate your investment in dire times. 

Pay off your student loans as soon as possible, if you have any, so that interest payments don't pile up. And of course, reviewing your portfolio annually as you cross each milestone in life, be it a career switch, higher education, marriage, or more so that you’re at the top of your game!

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