What's the next step for a non-engineering graduate with a 60% score and startup plans in India?

Ans: Have you tested this idea with anyone yet? Potential customers, partners, vendors etc. Pl do that first and validate key assumptions. Also, after that, check if close friends and family are willing to back you monetarily. First, do a pilot and implement it. That will enhance your confidence as also those of prospective future funders. At that stage, you will find that your initial plan has undergone changes. Make sure that you're tackling a challenging problem addressing a large market with your solution that is unique and differentiated. At that time, it would be good to revise your deck and get it assessed by experienced mentors/ advisers first before going to any outside investors/ funds.

It's better to have a mentor to guide you.

Ans: Entrepreneurship is flying the plane as you are making it.. you will never have 100% clarity or resources. Start small and then grow. Customer support management is a good business opportunity. You can start with that, if you have experience in this area.

Ans: Aman,

It's wonderful to see your interest in planning your financial future at such an early stage. I commend your proactive approach. Here are some steps you can follow to build a strong financial foundation and secure passive income for your future start-up.

Understanding Financial Planning
Financial planning is about managing your money to meet your life goals. It includes saving, investing, and managing risks.

Initial Steps
Emergency Fund: Save at least six months' worth of expenses. This will help during unforeseen situations.

Education and Skill Development: Invest in courses and certifications. This will enhance your employability and income potential.

Investment Options
Public Provident Fund (PPF)

Interest Rate: Around 7.1% per annum

Risk: Low

Benefits: Tax-free returns and long-term savings.

Mutual Funds

Interest Rate: Varies (10-15% on average)

Risk: Medium to High

Benefits: Professional management, diversified portfolio, and potential for higher returns.

Recurring Deposits (RD)

Interest Rate: Around 5-6% per annum

Risk: Low

Benefits: Regular savings with guaranteed returns.

Passive Income Strategies
Dividend-Yielding Stocks

Interest Rate: 2-6% dividend yield

Risk: Medium to High

Benefits: Regular income and potential capital appreciation.

Systematic Investment Plans (SIPs)

Interest Rate: Varies (8-12% on average)

Risk: Medium

Benefits: Disciplined investing, rupee cost averaging, and compounding benefits.

Risk Management
Health Insurance

Ensure you have adequate health insurance. This will protect you from high medical costs.
Term Insurance

Opt for a term insurance plan. This will secure your family's future in case of an untimely demise.
Long-Term Goals
Retirement Planning

Start contributing to retirement plans early. This will ensure financial independence in your later years.
Educational Savings

Save for higher education and any future courses. This will help in enhancing your skills and knowledge.
Final Insights
Starting early gives you a significant advantage. Regularly review and adjust your financial plan as your income and goals evolve. Seek guidance from a certified financial planner to tailor a plan specific to your needs.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in