I am 17 , going to turn 18 next month . I was seeking for some financial advice for my life and some planning to save for my future
Ans: Thank you for your proactive thinking at 17. It is truly admirable. Starting early can help you build wealth, achieve goals, and stay financially independent. Let’s look at your situation step-by-step.
You are entering adulthood. This is a great phase to lay a strong foundation for your finances.
Here is a full 360-degree answer, crafted simply, clearly, and professionally.
? Set up your income and expense tracking
– First, track every rupee you earn and spend.
– Use a simple app or notebook to record this.
– This helps you understand where your money goes.
– It teaches you self-control and awareness early on.
? Build the habit of saving monthly
– Save a fixed portion every month.
– Even Rs. 500 or Rs. 1000 is good to begin with.
– Focus on percentage saving, not rupee saving.
– For example, save 30% of your pocket money or income.
– This habit matters more than the amount.
? Open a basic savings account and digital wallet
– Choose a reputed public or private sector bank.
– Set up a savings account with a debit card.
– Don’t go for credit cards yet.
– Open a UPI-linked wallet like PhonePe or GPay.
– Use digital payments smartly. Avoid overspending.
? Learn the difference between needs and wants
– Needs are essential. Wants are temporary.
– Train your mind to delay gratification.
– If you can avoid impulsive buys now,
– You’ll build strong financial discipline for life.
? Start a small emergency fund
– This is money you don’t touch unless urgent.
– Aim to build Rs. 10,000–20,000 gradually.
– Keep this in a liquid mutual fund or FD.
– Never invest emergency money in risky assets.
? Understand what is investing and its purpose
– Investing means growing your money over time.
– It helps you beat inflation and build wealth.
– Don’t invest for quick profits.
– Invest for long-term goals like education or business.
? Begin mutual fund SIPs after 18
– You can start SIPs after you turn 18.
– Begin with Rs. 500–Rs. 1000 monthly.
– Choose diversified equity mutual funds to start.
– Use regular plans, not direct ones. Here's why.
? Direct funds vs. regular funds – what’s better?
– Direct plans seem to have lower expense ratios.
– But they offer no professional guidance.
– One wrong move can cost you years of gains.
– Regular plans through an MFD with CFP give clarity.
– You also get monitoring, rebalancing, and ongoing advice.
– Think long-term. Don’t save costs and miss growth.
? Avoid Index Funds – here’s why
– Index funds copy the stock market blindly.
– They invest in all companies, even the bad ones.
– They don’t protect during crashes.
– Active mutual funds have managers watching trends.
– They exit poor companies and enter good ones.
– This flexibility gives better returns over long periods.
? Learn about different types of investments
– Equity mutual funds are for long-term growth.
– Debt mutual funds give stability and low risk.
– Hybrid mutual funds combine both in one fund.
– Gold is good for diversification, but not much return.
– Real estate is illiquid. Not suggested for beginners.
– Fixed Deposits are safe but have low returns.
– Stocks are risky unless you understand them well.
? Build financial goals for the next 10 years
– Short-term: Education, laptop, travel, skills.
– Medium-term: Business idea, car, higher studies.
– Long-term: Financial freedom by age 35 or 40.
– Each goal should have a plan and timeline.
? Invest for skill-building and career growth
– Spend money to learn valuable skills.
– Choose courses that improve earning power.
– Focus on tech, finance, business, and communication.
– Invest in books, workshops, and certifications.
– They give you lifelong return on investment.
? Avoid all insurance-investment mix products
– Don’t buy ULIPs, endowment, or money-back plans.
– These give low returns and high charges.
– They are poor for both protection and returns.
– If you ever buy LIC or ULIP, surrender and reinvest.
– Use mutual funds for growth, term insurance for life cover.
? Buy pure term insurance after you start earning
– You don’t need it right now.
– But once you earn and support family, buy term cover.
– It is cheap and gives large coverage.
– Don’t mix insurance and investments ever.
? Stay debt-free for as long as possible
– Don’t take loans for gadgets, vacations, or lifestyle.
– Avoid credit cards unless very disciplined.
– Once you earn, take loans only for assets – not expenses.
– Pay EMIs only when needed, not for luxury.
? Read simple books on money
– Books help you learn financial wisdom early.
– Choose beginner-friendly ones on personal finance.
– Read one financial book every 3 months.
– This habit will guide you forever.
? Tax planning is not urgent now but learn the basics
– As a student or fresh earner, tax won’t affect much.
– But start learning basic tax concepts.
– Know the difference between taxable income and exemptions.
– This will help you later when you earn more.
? Create your first financial vision board
– Write down where you want to be in 5 years.
– Mention income, savings, skills, and personal growth.
– Put it in a place you see daily.
– This builds clarity and purpose in life.
? Set up a monthly money day
– Take one day every month to review your money.
– Track savings, update SIPs, check progress.
– Reflect and plan. Build this monthly money ritual.
– It creates lifelong money mindfulness.
? Learn digital security for financial safety
– Keep banking passwords safe and private.
– Use 2FA (two-factor authentication).
– Don’t share OTPs. Don’t click unknown links.
– Secure your phone and apps.
– Fraud prevention is a vital financial skill.
? Keep away from peer pressure and social media traps
– Don’t compare your spending with others.
– Trends and reels are temporary.
– Real wealth is silent and stable.
– Focus on your journey, not someone’s show-off.
? Once earning, keep these investing rules in mind
– Save 30–40% of income from day one.
– Start SIPs in equity mutual funds.
– Review once every 6 months.
– Step up SIPs as income grows.
– Don’t stop SIPs during market falls.
– Stay invested for 10–15 years.
? Open an NPS account after your first job
– National Pension System is good for retirement.
– You get tax benefit and long-term growth.
– Contribute even small amounts regularly.
– Begin early to enjoy compounding benefits.
? Plan for retirement even if it feels far
– Retirement planning should start with your first income.
– It’s not about age, it’s about habit.
– Invest in equity mutual funds and NPS.
– The earlier you start, the less you need to save monthly.
– Let time work for you.
? Stay aware of mutual fund taxation
– Equity mutual funds have new rules now.
– Gains above Rs. 1.25 lakh yearly are taxed at 12.5%.
– Short-term gains are taxed at 20%.
– Debt funds are taxed as per your slab.
– Hold for long term to reduce tax impact.
? Don’t follow market tips or influencers blindly
– Everyone’s situation is different.
– What works for others may hurt you.
– Follow guidance from a Certified Financial Planner.
– Your plan should match your age, goals, and values.
– Stay away from “quick money” traps.
? Build a long-term wealth mindset
– Think in 5–10 year blocks, not 5-day gains.
– Focus on compounding, not trading.
– Don’t panic with market noise.
– Stay invested through all cycles.
? Avoid jumping into stock market directly
– Stocks are risky without knowledge.
– Begin with mutual funds to learn.
– Once you understand businesses and valuation,
– You can explore stocks slowly with small amounts.
? Be patient – wealth building takes time
– No shortcut can replace time and discipline.
– Compounding works slowly, then suddenly.
– Your habits now will shape your future.
– Stay consistent. Stay informed. Stay humble.
? Finally
– You are starting earlier than most. That’s a big plus.
– Learn, save, and grow without fear.
– Focus on habits, not hype.
– Keep your money journey simple and smart.
– Talk to a Certified Financial Planner once you start earning.
– Make financial decisions with confidence, not confusion.
Best Regards,
K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in
https://www.youtube.com/@HolisticInvestment