Hi sir my age is 29 don't have any savings How to start savings one my income 900 rupees

Ans: Certainly! It's never too late to start investing. Here are steps you can take to begin your savings and investment journey:

Emergency Fund: Start by building an emergency fund equivalent to 3-6 months of your living expenses. This fund provides financial security in case of unexpected expenses or loss of income.

Retirement Planning: Evaluate your retirement goals and estimate the amount you'll need. Consider options like Public Provident Fund (PPF), National Pension System (NPS), and systematic investments in mutual funds for long-term growth.

Debt Reduction: If you have high-interest debt, prioritize paying it off. Reducing debt can free up more money for investments.

Diversified Portfolio: Build a diversified investment portfolio that includes a mix of equity, debt, and possibly real estate based on your risk tolerance and financial goals.

Systematic Investment Plan (SIP): Consider starting a SIP in mutual funds. This allows you to invest regularly in a disciplined manner, benefitting from rupee cost averaging.

Insurance Coverage: Ensure you have adequate health and life insurance coverage. This protects you and your family from unforeseen medical expenses and provides financial support in case of any unfortunate events.

Professional Advice: Consult with a financial advisor. They can help tailor an investment plan based on your unique financial situation, goals, and risk tolerance.

Tax Planning: Explore tax-saving investment options like Equity-Linked Saving Schemes (ELSS) and other tax-saving instruments to optimize your tax liability.
Stay Informed:

Remember, it's crucial to align your investments with your financial goals and regularly reassess your strategy. Consult with a financial advisor to create a personalized plan that suits your specific circumstances and aspirations

Ans: It's great that you want to start investing and saving. With an income of ?900 per month, it can be challenging, but every small step counts. Let’s explore how you can begin saving and investing.

Understanding Your Current Financial Situation
First, understand your income and expenses. Track your monthly spending to identify areas where you can cut back. Even small savings can add up over time.

Setting Realistic Goals
Start with small, achievable goals. Aim to save a portion of your income each month. This helps build a habit of saving.

Creating a Budget
Track Income and Expenses

List all your monthly income and expenses.
Identify non-essential expenses you can reduce or eliminate.
Allocate Savings

Aim to save at least 10% of your income. With ?900, this means saving ?90 each month.
Emergency Fund

Build an emergency fund for unexpected expenses. Start small, aim for ?500 initially.
Saving Methods
Savings Account

Open a basic savings account. It’s safe and earns a small interest.
Recurring Deposit (RD)

Consider starting a recurring deposit with your bank. You can deposit a small fixed amount each month. It’s a disciplined way to save.
Basic Investment Options
Systematic Investment Plans (SIPs)

Start a SIP with as little as ?500 per month. Mutual funds have options for low initial investments. SIPs help in disciplined investing and can offer good returns over time.
Public Provident Fund (PPF)

PPF is a safe and long-term investment option. You can start with small amounts and increase contributions as your income grows.
Government Schemes
Pradhan Mantri Jan Dhan Yojana (PMJDY)

Open a Jan Dhan account. It offers no minimum balance requirement and other benefits like insurance.
Atal Pension Yojana (APY)

A pension scheme for workers in the unorganised sector. You can contribute small amounts to secure your retirement.
Increasing Your Income
Skill Development

Invest in learning new skills to increase your earning potential. Look for free or low-cost courses online.
Part-Time Work

Consider part-time jobs or freelancing to supplement your income. This additional income can boost your savings and investment capacity.
Discipline and Patience
Consistency

Regular saving and investing, no matter how small, will yield results over time. Be consistent with your contributions.
Avoid Debt

Avoid unnecessary loans or credit. If you must borrow, ensure you can manage the repayments.
Reviewing and Adjusting
Regular Review

Review your budget and savings plan regularly. Adjust your savings and investment as your income grows.
Seek Advice

Consult a Certified Financial Planner for personalized advice as your financial situation evolves.

Starting with a small income can be tough, but your determination to save and invest is commendable. Every rupee saved is a step towards financial security. Stay committed, and over time, you’ll see the benefits of your disciplined approach.

Conclusion
Beginning your investment journey at 29 with a limited income is challenging but possible. Start by creating a budget, saving consistently, and exploring safe investment options. Increase your income through skill development and part-time work. Regularly review your progress and adjust your plan as needed. Your commitment to saving and investing will pave the way for a secure financial future.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

Ans: Saving is very simple. Create a budget. Based on the budget see how you can increase your income or decrease your expenses. Both will result in savings. It is suggested that you save atleast 10% of your income.

Ans: At 32 years, earning Rs. 1.3 lakh monthly is commendable. Your expenses and EMI are under control, leaving substantial surplus income for savings and investments. This is the right time to set long-term financial goals and take strategic actions to secure your financial future.

Current Financial Snapshot
Monthly Income: Rs. 1.3 lakh

Monthly Expenses: Rs. 20,000

EMI: Rs. 10,000

Surplus Income: Rs. 1 lakh

Current Savings: None

Immediate Financial Goals
1. Create an Emergency Fund:

Save at least six months' worth of expenses, including EMIs.

Use a high-liquidity account or fixed deposit for this fund.

2. Review Loan Repayment:

Clear your current EMI loan as soon as possible.

Avoid taking any additional loans for the next few years.

3. Track and Optimise Expenses:

Review your expenses for any unnecessary spending.

Allocate a fixed amount towards savings and investments.

Long-Term Financial Goals
1. Retirement Planning:

Start planning for retirement early to benefit from compounding.

Allocate a portion of savings to equity mutual funds for long-term growth.

2. Wealth Creation:

Invest regularly through SIPs in actively managed mutual funds.

Diversify into large-cap, mid-cap, and small-cap mutual funds.

3. Tax Planning:

Invest in tax-saving instruments under Section 80C and 80D.

Focus on equity-linked options for better post-tax returns.

Building a Savings Plan
1. Automate Savings:

Set up automatic transfers to savings and investment accounts.

Begin with 50% of your surplus income (Rs. 50,000 per month).

2. Diversify Investments:

Allocate funds to mutual funds, fixed-income instruments, and gold.

Actively managed mutual funds outperform index funds in volatile markets.

3. Avoid Direct Funds:

Direct funds lack professional guidance and regular review.

Regular funds through a Certified Financial Planner ensure better portfolio management.

Investment Strategies
1. Mutual Funds:

SIPs offer disciplined investing and long-term wealth creation.

Actively managed funds provide higher growth than index funds.

2. Debt Instruments:

Include debt mutual funds for stability and diversification.

Debt funds are tax-efficient but taxed as per your income slab.

3. Insurance Coverage:

Take adequate health insurance to cover medical emergencies.

If you have dependents, purchase term life insurance for their financial security.

Tax Implications
1. Mutual Fund Gains:

Equity mutual fund gains above Rs. 1.25 lakh are taxed at 12.5%.

Debt mutual fund gains are taxed as per your income slab.

2. Section 80C Benefits:

Invest in ELSS or PPF for tax-saving benefits.

Consider a balanced mix of tax-saving and growth-focused instruments.

Financial Discipline
1. Set Clear Goals:

Define your short-term and long-term financial goals.

Align savings and investments to these goals.

2. Track Progress:

Regularly review your income, expenses, and investments.

Make adjustments based on life changes or market conditions.

3. Avoid Impulsive Spending:

Stick to your budget and avoid lifestyle inflation.

Prioritise savings over non-essential purchases.

Final Insights
You are in an excellent position to build wealth with disciplined financial planning. Focus on clearing your loan quickly and creating an emergency fund. Begin investing in mutual funds through SIPs and diversify across asset classes. Work with a Certified Financial Planner to create a tailored investment strategy. By staying consistent, you can achieve your financial goals and secure a prosperous future.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

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