Is a PGDM Equivalent to an MBA? My Experience at ITM Business School - Warangal

Ans: You are only 23 years old.

This is a golden stage to start planning for retirement.

Starting early helps your money grow for many years.

This is a smart and forward-thinking step at your age.

Your current income is Rs. 47,000.

Your loan EMI is Rs. 8,000 for 8 more months.

Family expenses are Rs. 25,000 per month.

This leaves you with Rs. 14,000 each month to plan wisely.

Prioritise a Clear Financial Structure

Start with a structure.

Without a structure, confusion may follow.

Plan your spending, savings, and investment clearly.

Follow this monthly plan:

Use Rs. 25,000 for family needs.

Continue Rs. 8,000 EMI until it ends.

Keep Rs. 2,000 as emergency savings.

Invest the remaining Rs. 12,000 carefully.

Build Emergency Fund First

Life has surprises.

Prepare for them with a safety fund.

Keep at least 4 months' expenses in a liquid fund or savings.

Target Rs. 1 lakh over the next 10-12 months.

Use recurring deposits or a liquid mutual fund for this.

Avoid Real Estate at This Stage

You may hear about land or property.

But it needs large capital and low liquidity.

It may stay idle for many years.

Avoid real estate till your financial base is strong.

Use a Certified Financial Planner for Investing

Many beginners invest on their own.

They choose direct funds or use apps.

But direct funds miss ongoing advice.

You need proper guidance while selecting and reviewing funds.

Investing through a certified mutual fund distributor helps.

They partner with Certified Financial Planners.

This helps you get better fund reviews and changes.

Direct Mutual Funds Have Gaps

Many prefer direct funds thinking they save cost.

But they miss expert insights.

They invest blindly without goal mapping.

When markets fall, they panic and withdraw.

This ruins long-term growth.

Regular funds via a certified distributor give better peace of mind.

You get proper risk analysis and allocation suggestions.

Avoid Index Funds at This Stage

Index funds are very basic.

They copy a fixed list of stocks.

They do not change based on market condition.

If markets fall, index funds fall blindly too.

Active mutual funds adapt to change.

They shift allocation if needed.

This helps reduce risk and capture better returns.

Begin your investing with actively managed funds.

These are guided by expert fund managers.

Start with Simple SIPs

SIP is Systematic Investment Plan.

Start with Rs. 6,000 monthly SIP in mutual funds.

Split it across 2 or 3 active funds.

One can be equity diversified.

One can be flexi cap.

One can be hybrid (equity + debt).

This gives you balance and growth.

SIPs Create Wealth Slowly but Steadily

Rs. 6,000 monthly today may look small.

But this can become a big corpus over 30 years.

You may cross Rs. 2-3 crores with discipline.

Increase SIP as your income grows.

Start with less, but stay regular.

Retirement Goal Needs Vision

You are thinking of retirement already.

That is excellent vision.

Plan to retire with at least Rs. 4 to 5 crores in today’s value.

With inflation, you will need more later.

If you plan step by step, this is possible.

Insurance Is Non-Negotiable

Before investing, protect your income.

You need a term life cover.

Even if you are young, don’t skip this.

Take term insurance for 25-30 years.

Premium is low now.

Also take health insurance of Rs. 5 lakhs minimum.

Don’t depend only on employer cover.

This will protect you from sudden medical bills.

Don't Ignore Family Needs

You are supporting family.

Keep open talks with them.

Discuss your goals and income clearly.

Involve them in budget planning.

Avoid overspending due to emotional pressure.

This gives financial strength to the family as well.

Avoid Personal Loans or Credit Cards

Never borrow for lifestyle.

If you can’t afford something, delay it.

Avoid EMI offers on gadgets.

Credit card bills destroy your surplus.

Build strong habits now.

Use Increments Wisely

As your salary increases, increase SIP too.

If your income rises by 10%, raise SIP by 5%.

This step alone multiplies your wealth.

Avoid upgrading lifestyle with every hike.

Education Loan Should Not Stop You

You are paying Rs. 8,000 EMI for 8 months.

Don’t worry about this.

Once loan ends, invest that amount too.

Let EMI habit continue as SIP after loan closes.

This is a powerful trick to build wealth.

Create Budget Discipline

Write all your expenses each month.

Know where your money goes.

Use simple apps or a notebook.

Review expenses monthly.

Cut unnecessary spending.

This helps increase savings ratio.

Start Reading Simple Financial Content

Start with basic personal finance books.

Watch simple YouTube videos on money.

Avoid stock market tips and news noise.

Stick to structured, goal-based investing.

Use content from CFP-based platforms only.

Avoid Peer Pressure Spending

Friends may spend on bikes, mobiles, trips.

You don’t have to copy them.

Be proud of your savings habit.

Stay humble and focused.

You will be ahead after 10 years.

Build Small Habits

Every rupee saved counts.

Even saving Rs. 500 helps.

Avoid online impulse shopping.

Buy only what you need.

Save first, then spend.

Track Your Progress Yearly

Once in a year, do financial review.

Check SIP performance.

Check fund rating and past returns.

Rebalance if required with CFP support.

Make sure it matches your goal.

Don’t Time the Market

Don’t try to buy when market is low.

You can’t guess market levels.

Continue SIP in all market cycles.

This gives best long-term average return.

Tax Benefits Should Be Used Wisely

Once your income increases, plan tax-saving investments.

Use ELSS mutual funds for section 80C benefit.

Avoid insurance-based tax plans.

They offer low returns and long lock-ins.

Don’t mix insurance with investment.

Stay Away from ULIPs or Endowment Plans

Agents may sell investment-insurance policies.

They look good, but offer poor growth.

Low returns and high lock-in periods.

They don’t beat inflation in long term.

Stay with term insurance and mutual funds separately.

Marriage and Future Events Planning

If you plan to marry in few years, save for it.

Start a separate fund.

Don’t use your retirement fund for wedding.

Same way, save separately for home loan down payment.

Label every goal and invest for that.

Final Insights

At 23, time is your biggest strength.

You are already focused on the right path.

Keep your lifestyle simple.

Keep investing simple.

Don’t stop SIP.

Don’t follow market news blindly.

Avoid direct mutual fund routes.

Choose regular plans through certified MFD with CFP tie-up.

Avoid index funds.

Stick to active funds only.

Avoid loans and debt traps.

Focus on insurance, budgeting, and saving.

Stay consistent.

You will build wealth beyond expectations.

Don’t get distracted by short-term noise.

Stick to your path.

Use expert help when needed.

You are on the right start.

Stay on it with courage and patience.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in
https://www.youtube.com/@HolisticInvestment