Small Savings, Big Rewards

Joseph and Ranvir met for the first time when they were ten years old. Their fathers worked in the same public sector company and happened to be posted together in the same place. Both families had neighbouring accommodation, and both the boys, being of the same age, developed an instant friendship that is strong even today.

Joseph and Ranvir walked down to the school together, played together, did their assignments together and even spent their vacations together. As luck would have it, both the families were transferred to the same cities subsequently, ensuring the boys stuck together throughout their schooling, and even later, as they joined the same college in Goa.

As they progressed through their college years, both took up paid internships to supplement their pocket money. Finally, in the last year of their graduation, it was time to face the harsh realities of life – Joseph and Ranvir both wanted to pursue higher studies, but their fathers couldn’t afford it. Ranvir, thus, decided to join a bank that had selected him during a campus interview. Joseph, however, decided to go for post graduation. He had started investing a small amount of INR 500 from his pocket money ever since he was 15 through SIPs, as advised by his wealthy maternal uncle. Impressed by his young son’s financial discipline, Joseph’s father matched the amount of his investment each month, encouraging Joseph to save even more.

Thus, as Joseph grew in age, so did his portfolio. Even in college, when Ranvir and their other friends spent their stipend on movies and coffee, Joseph invested half of it, each month, growing his portfolio significantly.

Like Joseph, by inculcating financial discipline since childhood, you can also ensure financial independence to fulfil your dreams from a young age.

Dr. Celso Fernandes, author of two much-loved books “Who Says Money Doesn’t Grow on Trees” and “Don’t Chase Money, Let Money Chase You”, is on a continuous mission to encourage youngsters to start saving and investing from an early age so that they could get a better handle on their life. Dr. Celso mentors “Young Achievers Club” and “Super Achievers Club” focused at dispensing financial literacy among youngsters.

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Young Investor, Smart Investor

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“Here, Dad, take thousand rupees for my SIP,” Ryan says while handing over two crisp INR 500 notes to his father. Unlike most 18-year-olds, Ryan gleefully gives away thousand rupees from his pocket-money each month so that his father could invest in mutual funds on his behalf.

Ryan has been investing in mutual funds since the time he turned 15. It was his father’s idea, who, on his financial planner’s advice, encouraged Ryan to save and invest from a young age.

At the beginning, it was difficult for Ryan to part with INR 500 per month from his meager pocket-money, but soon he got into the practice of saving and investing each month. In fact, after investing for two years, his father showed him his portfolio, and he was astounded to see that he has built up a portfolio of over INR 30,000. Motivated to build up a larger portfolio, Ryan volunteered to increase his monthly SIP investments to one thousand rupees.

Seeing his son getting financially disciplined and responsible towards accumulating wealth from an early age, his father has recently started pitching in an additional one thousand rupees per month to Ryan’s investments. By the time Ryan would complete his undergraduate course, he will have a pretty portfolio, and the freedom to make life choices. For example, he could undergo an expensive skill building course or take up a non-paying internship at his dream company or choose to back pack across Southern Europe to learn precious life lessons – his portfolio will give him the financial freedom few could fancy at his age.

Many young dreams wilt and perish under the hardships of life. Being financially independent from a young age gives the courage and drive to fulfill one’s dreams and aspirations.

Dr. Celso Fernandes, author of two much-loved books “Who Says Money Doesn’t Grow on Trees” and “Don’t Chase Money, Let Money Chase You”, is on a continuous mission to encourage youngsters to start saving and investing from an early age so that they could get a better handle on their life. Dr. Celso mentors “Young Achievers Club” and “Super Achievers Club” focused at dispensing financial literacy among youngsters.