In your 20’s, you are like a ball of excitement, full of enthusiasm, ambition, and positivity. Hold on to all of that; you already know how to enjoy life. This article will give you some insights on how to grow through your life financially. You see, it is not mandatory to be dead serious about savings and investments in your early 20s. But a little understanding will definitely pave your future financial journey.
You are Genz. The digital world is your playground, and speed is what drives you. It is no hidden fact that for your generation the term "banking" might sound like something from the past decade, but let’s get something clear.
Your generation and the digital wave have swept away the good old nature of banking and finance. Now, your bank and investment instruments are application based, and mobile compatible. So, you don’t have to make a visit to any branch to carry out day-to day banking activity, unless you want to.
Learn to save
You may ask why? Because it is easy. You can actually open a savings account right now, without any maintenance charges. A digital zero balance savings account is the present and future of banking. All you need to do is download the app or visit the bank's website, key in some basic details, and your account is ready.
With Kotak811 digital savings account? You get a free virtual debit card to deal with your online payments. And, if you think, you need a credit card, the 811 account offers an FD-backed secured credit card without any income documents or previous credit history.
Regularity is the key to success, be it at work or in finances. Regular investment will inculcate the habit of savings in you. So, when the time comes, you are ready for the bigger investments in life. A recurring deposit account will be perfect for you, and the good part is you can apply for an RD account online.
Recurring deposit is one of the safest investment tools, where you will get the entire principle along with the interest at which you have booked the RD post-maturity. You can start with a minimum amount of Rs.100 and deposit that amount on a monthly basis for a year or more.
Chart your expenses
It is a good habit to chart your monthly expenses. I know it might sound a bit daunting, but actually, it is a one-time activity. The benefits are quite outstanding; you will be challenged by the unnecessary expenses over the necessary ones. Once you know how much you spend, it will be easy to save money.
Think SIPs and stocks
In 2022, investing in stocks and mutual funds is like ordering food online. There are multiple investment apps where you can systematically invest your money. The application guides you on how and where to invest. They keep you posted on market trends, projections, and risks. So, if you are interested, you can start with small SIP investments. Tip: Automate your investments, so every month a specific amount will be debited from your savings account into your investment account.
This is the perfect time to shape your financial independence and fuel your savings for a stronger future.
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This Article is for information purposes only. The views expressed in this Article do not necessarily constitute the views of Kotak Mahindra Bank Ltd. (“Bank”) or its employees. Bank makes no warranty of any kind with respect to the completeness or accuracy of the material and articles contained in this Newsletter. The information contained in this Article is sourced from empanelled external experts for the benefit of the customers and it does not constitute legal advice from Kotak. Kotak, its directors, employees, and contributors shall not be responsible or liable for any damage or loss resulting from or arising due to reliance on or use of any information contained herein.