Financial advice to fresher IT guys.

I wish someone had given me this advise when I started out in the Indian IT industry

  • Plan to retire from this industry at 40. That is, you do not have to really retire but plan aggressively for enough financial stability to retire.
  • Don’t create any liabilities until you hit 40. Invest all you can and live a simple life as much as you can. Be aggressive with this in the first 10-15 years of your life. Invest like a billionaire, spend like a pauper.
  • You really don’t need that car. However you can invest some money per month equivalent to whatever EMI it is for your chosen car. Over time your will have the corpus to buy one whenever you want to.
  • You don’t need that house. Follow the same strategy to invest per month equivalent to an EMI for whatever is your dream home today. Build a corpus.
  • A bike or scooter can be a bit useful. Buy one only if absolutely needed. Prefer buying a bicycle over them if you can.
  • You will hit a mid-life crisis anywhere between 35-45 where you will feel not growing enough at work and/or wanting to start something on your own. Trust me, not having any liabilities will be a blessing that frees you to decide whatever you want to do with your life.
  • But a term insurance plan and keep it. Buy a health insurance plan keep it. NEVER BUY any ULIP plan but. Trust me on this.
  • Over time the stock market has proven to provide better returns over other instruments.
  • You will be lured to buy credit cards and personal loans. You need exactly 1 credit card and exactly 0 personal loans. Because, liabilities.
  • Spend liberally when it comes to knowledge, and health. Don’t scrimp on them.

Hariharan Narayanan (ஹரிஹரன் நாராயணன்)

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