Your 20s – The Foundation Years

Your 20s are a time to build habits—not just for health and career, but also your finances. Unfortunately, this is where most Indians falter.

Mistake 1: No Budgeting or Expense Tracking

You earn your first salary and suddenly you’re rich (or so it seems). But without tracking your spending, you’re likely to run into debt.

Fix: Use apps like Walnut, Money Manager, or simple Excel sheets. Allocate your income using the 50:30:20 rule.

Mistake 2: No Emergency Fund

An unexpected job loss, a medical bill, or a family need can crush your savings.

Fix: Save at least 3-6 months of your monthly expenses in a liquid mutual fund or savings account.

Mistake 3: No Insurance

You may think insurance is for the elderly—but accidents and illnesses don’t ask age.

Fix: Get a term insurance policy and health insurance. Go for at least ₹50 lakh cover for term and ₹5 lakh for health.

Mistake 4: Not Starting Investments Early

The biggest asset you have in your 20s is time. But most Indians wait too long.

Fix: Start a SIP in mutual funds as low as ₹500/month. Open a free demat account to begin investing.

Start SIP with a Free Demat Account – Upstox

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Your 30s – Family and Financial Responsibility

This is when major life events happen—marriage, kids, home loans, etc. Mistakes here can delay wealth for decades.

Mistake 5: Not Reviewing Financial Goals

With changing life stages, your old plans may no longer work.

Fix: Review goals yearly. Have a plan for your child’s education, house, and retirement.

Mistake 6: No Tax Planning

Many salaried people wait till March to plan taxes, then panic-invest in low-yield instruments.

Fix: Invest smartly in ELSS funds under Section 80C. Better returns than PPF or LIC.

Mistake 7: Buying a House Too Soon

Peer pressure or family might push you to buy a house early.

Fix: First stabilize your income, build a corpus, and evaluate whether buying is better than renting in your city.

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Your 40s – The Growth Years

This is the most powerful decade for compounding and wealth building.

Mistake 8: Not Diversifying Investments

Many keep all money in FDs or only real estate.

Fix: Diversify across stocks, mutual funds, gold, and even international funds. Use a demat account for ease.

Open Free Demat Account with Upstox

Mistake 9: Ignoring Health

By now, stress and lifestyle issues start showing up.

Fix: Upgrade your health insurance, add riders, and get yearly health checkups.

Mistake 10: Helping Too Much Financially

You may want to help family and friends—but don’t stretch yourself thin.

Fix: Prioritize your own retirement and kids’ education first.

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Your 50s – Preparing for Retirement

Mistakes here are costly because you have less time to fix them.

Mistake 11: Relying Only on EPF or Pension

Inflation will eat away your corpus if it’s not invested properly.

Fix: Continue with low-risk equity mutual funds or senior citizen savings schemes.

Mistake 12: Not Updating Will & Nominees

Many people forget to nominate family in their investments or insurance.

Fix: Review your portfolio, demat, and bank accounts for nominee updates.

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Bonus Tips (Applicable for All Ages)

• Always pay your credit card bills in full

• Don’t take loans for luxury items

• Use UPI and digital tools to avoid unnecessary ATM withdrawals

• Never fall for get-rich-quick stock market schemes

• Keep investing small amounts regularly – SIP is your best friend

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 Get Started with Smart Investing Today

The sooner you begin, the better. Start with small amounts, build a habit, and grow with confidence.

Open Your Free Demat Account with Upstox