Money management can indeed be taken well care of especially when one is young. As one grows old, inspite of the growing earnings, the expenses grow multifold due to increasing responsibilities. So, while it is difficult to enhance the savings quotient at a later stage, it becomes difficult to control the expenses either. So, make sure you avoid making these typical Y-Gen habits:

1. It’s still a Long Time before I retire, Why Save Now – This is the most deadly mistake a young professional makes. The early you start to save, the bigger corpus you may have at the time of retirement.


For example, if you start saving Rs. 10,000 for your retirement at the age of 25, your retirement corpus shall be Rs. 6.50 crores while if the savings start at the age of 35 years, the retirement corpus shall be Rs. 1.90 crores at the age of 60. In both these calculations, returns of 12% have been assumed. So, if this difference of Rs. 4.60 crores doesn’t really bother you, you may still continue delaying your investments. And for the rest, it’s just a wake-up call.

2. Impulse Buying – Y-Gen or the Younger Generation has an undeniable attraction towards spending or indeed over-spending. You see the latest iPhone 6S on the shelf at the nearest Croma store and you are already planning to buy it, just because it’s the In-thing today. The new handset may not be required, but trying to remain ahead of the peer group results in losing the sight of the financial budget one may have set. Once in a while impulse buying might not be a bad thing, but making it a habit is indeed injurious to your financial health.

3. Living an EMI life – Spending beyond the means is an easy mantra of life for the younger generation today. Easy personal loans and credit card EMIs have made it easier to make life worse.


With an easy access to credit, overspending beyond the means is never a problem. However, ignoring the debt situation indeed is. Having an “out of sight, out of mind” attitude toward your debt is dangerous. Further, having a life surrounded by EMIs might suck the enjoyment out of your work, since it is more of a compulsion instead of a choice now. Make sure you live an EMI (Every Month is Interesting) life, instead of EMI (Equated Monthly Instalments) life.

So, this is just a small step at the right time, and a giant leap for healthy financial future. Make sure, you take a step in the right direction.

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