Financial Planning : A must do for Gen Ys

If you are a Gen Y, take a step back and ask this question to yourself: “Do I have enough savings to take care of myself and my family in the coming future?”

Well, we all have witnessed the changing market dynamics and financial hiccups in the past, especially during the post-recessionary period.  We all agree that financial security is very important to sustain in today’s world. But how many of us are actually working towards it? Gen Ys…Knock knock! Even 5 years down the line, we are still ‘THINKING’ about investment and security. However, thinking without actions has Zero value. With wobbling global economic scenario, the focus on financial security will continue to increase. Our youth ought to understand this. There is no choice!

Remember, YOU are accountable for your financial health. Today, youngsters are thinking about building their own personal brand.  They want a high social status and a high standard of living. They are really struggling very hard to meet their life goals. And I really admire their hunger to outperform. After all, if you want to grow and prosper in your life all these things are absolutely critical. But wait a second….take a pause and think for a moment! Is spending your entire income in managing your today by ignoring your tomorrow a smart move?

Once you are convinced that there is no substitute to investments and securities you will start exploring the options. At times, you will get bogged down by the breadth of options available in the market. Relax, this happens to everyone. In order to ensure that you understand the financial undercurrents, seek help from experts. These experts can be your friends, colleagues, financial advisors, relatives or even your well-wishers. Just make your first move. Don’t hesitate!

While there are a number of options available in the market, it is important that you purposefully engage your money by diversifying your portfolio. Accordingly to me, your portfolio should resemble a pyramid. While it is important to make the base strong, you simply cannot build your house without a roof top. It is important to diversify your portfolio in the right proportion at the right point of time across the pyramid.

With fluctuating economic scenario, it has increasingly become important to keep an eye on changing “money market”.  Keep screening the market continuously to tap the opportunities and tackle the challenges. You need to track your every single move as even one mistake can cost you a huge penalty. Beware!

*Insurance is not an investment.